Tech firm Improbable has posted its first annual profit, posting a £11m profit in 2023.
The company announced the news when filing with Companies House yesterday, also reporting a 37% year-on-year increase in revenue to £66m and a cash position of £185m.
Improbable was founded in 2012 and initially focused on technology that could be used to create large-scale persistent simulations for use in video games. In 2021, it shifted its focus to metaverse technologies, although some of its tools can still be used for games and virtual worlds.
Late last year, it announced its transition to a “company creation” model. The company will create startups using its technology, targeting the metaverse, artificial intelligence and blockchain sectors.
“A decade ago, we embarked on the challenging but immensely rewarding journey of focusing on distributed systems for virtual worlds,” said Founder and CEO Herman Narula. “During this period, we have honed our expertise in commercializing complex technology products, built and grown companies, and developed proprietary technology with significant barriers to entry.
“Two years ago, we doubled down on our commitment to the metaverse. In 2023, we posted revenues of £66m and delivered total profits of £11m, driven by growth, cost discipline and the divestment of high-value assets. We have uniquely demonstrated the ability to pursue real, distinct businesses simultaneously.”
While Improbable initially focused on game development, it has sold all of its gaming businesses in recent years.
In 2022, Nightingale developer Inflexion was sold to Tencent, and Scavengers creator Midwinter Entertainment was acquired by Behaviour Interactive (Scavengers itself was shut down later that year).
In December 2023, Keywords acquired The Multiplayer Guys for £76.5 million.
The company's technology impressed investors and the company raised hundreds of millions of dollars over the years, including a $500 million investment from Softbank in 2017.