Improbable has reported its first profitable quarter

Improbable, a technology company, has achieved its first annual profit, reporting a gain of £11 million for the year 2023.

In its latest submission to Companies House, the company also highlighted a 37% revenue growth from the previous year, bringing its total revenue to £66 million, with a cash reserve of £185 million.

Founded in 2012, Improbable initially specialized in developing large-scale simulations for the gaming sector. In 2021, the company transitioned to focus on metaverse technologies, while still offering tools applicable to virtual environments and games.

Toward the end of last year, Improbable adopted a new business model aimed at incubating startups that leverage its technology in the metaverse, AI, and blockchain spaces.

"A decade ago, our journey began with a focus on distributed systems for virtual worlds," said Herman Narula, founder and CEO. "Through the years, we've not only refined our capability to bring complex tech products to market but also nurtured and expanded various enterprises while developing proprietary technologies with significant barriers to entry.

"In 2023, our intensified commitment to the metaverse was rewarded with £66 million in revenue and an £11 million profit, achieved through growth, stringent cost control, and asset divestment. We've proven our capability to manage distinct, real businesses concurrently."

While initially focused on game development, Improbable has since divested its gaming assets over the past few years.

Notably, in 2022, Improbable sold Nightingale developer Inflexion to Tencent and Midwinter Entertainment, the creator of Scavengers, to Behaviour Interactive. Later that year, the game Scavengers was discontinued.

By December 2023, The Multiplayer Guys were acquired by Keywords for £76.5 million.

Improbable's technology has garnered significant investor interest, evidenced by substantial funding rounds, including a $500 million investment from Softbank in 2017.