London-based tech unicorn Improbable remains bullish on the future of the metaverse as it publishes financial results showing it cut losses by £131m to £19m.
The company, which develops the infrastructure for metaverse worlds for gaming, academia, business and more, more than doubled revenue growth for the 2022 financial year, increasing its top line to £78m, up from £30.1m in the year prior.
Improbable has yet to hit profitability. However, the company points to an almost 90% drop in pre-tax losses as a sign that it is on the right trajectory as it announced plans to reorganise its key businesses.
The reorganisation will see the company focus on three primary areas of activity. They are metaverse technology development, metaverse experience development and metaverse venture building.
“The Improbable business has matured significantly in the past two years and these numbers are testament to that,” said Improbable CFO Dan Odell.
“The focus is now on industrialising what we are doing by being involved in more events with more people where there is scope to drive and monetise engagement levels.”
Founded in 2012, Improbable enjoyed a dramatic rise to prominence last year, alongside the short-lived metaverse buzz boosted by Mark Zuckerberg rebranding Facebook to Meta.
Improbable landed a $3.4bn valuation in October 2022 after a handful of big-money funding rounds.
Backers of the firm include SoftBank and Andreessen Horowitz.
Interest in the metaverse has slowed more recently, hitting firms and investors that bet big on virtual worlds being the next big thing.
Declining interest in the metaverse hasn’t stopped Improbable’s confidence in approaching profitability, however.
“Improbable emerged from 2022 a much stronger, leaner and more resilient entity. We should all be excited for the future as we have a fantastic foundation to build upon and deliver content at scale,” said COO Peter Lipka.
“Our venture-building activity will see us initiate, grow and eventually spin off a whole new set of businesses exploring the metaverse.”