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Kabam said today that its 2012 revenue grew more than 70 percent, past $180 million. The privately held company did not disclose earnings, but it said it was profitable.
The San Francisco-based company isn’t under any obligation to disclose its financial performance, but it is no secret that the social and mobile game company is an initial public offering candidate. Kabam said that its fastest growth is in the mobile sector, where its games are popular on both iOS and Android devices.
A spokesman for Kabam declined comment on the potential for an IPO.
“Kabam blew past its plan in 2012,” said Kevin Chou, the chief executive and cofounder, in a statement. “At this time last year we forecast 2012 revenue to grow by 30 percent to 40 percent. Because of our team’s focus on strategic growth across diverse game genres and platforms, including mobile and the Web, we exceeded our own expectations and entered 2013 with an annualized run rate in excess of $200 million.
“We have built what is now well more than a $100 million-plus annualized mobile business in less than one year with a slate of exciting new games across multiple genres.”
Kabam makes free-to-play strategy games that appeal to hardcore gamers. Such titles, where gamers play for free and pay real money for virtual goods, can disrupt the traditional game industry that charges $60 at retail for a game, Chou said.
“Kabam is leveraging its franchise intellectual property and technology to become the leader in free-to-play games on mobile devices in the Western world,” Chou said.
Kabam has raised more than $120, including a $75 million round in May 2011. At that time, Kabam was valued at more than $500 million by investors such as Google Ventures, Intel Capital, Redpoint Ventures, and Canaan Partners. Late last year, Warner Bros. Entertainment (Warner Bros.) and Metro-Goldwyn-Mayer Studios (MGM) also invested by buying shares from an earlier investor.
Kabam chief financial officer Steven Klei said, “Because Kabam’s financial model and unit economics are so strong, we expect both continued rapid growth and margin expansion again in 2013. Kabam is well positioned to continue its significant investments in growth as we enter 2013 with more than $45 million of cash.”
It disclosed its average revenue per daily active user (ARPDAU) is eight to nine times larger than the industry’s largest company. It also noted that its Kingdoms of Camelot: Battle for the North placed first on Apple’s highest Ggrossing apps list for 2012. Kabam recently launched The Hobbit: Kingdoms of Middle-earth for mobile devices. That title has become one of the top 10 grossing apps in 50 countries.
Seven Kabam games grossed more than $1 million per month in 2012. Kingdoms of Camelot has generated more than $100 million since it launched in 2009. At the end of 2011, Kabam was 100 percent dependent on Facebook. Now it has diversified across iOS, Android, and the web in addition to Facebook. And Kabam has development studios across North America, Europe, and Asia. Kabam has more than 500 employees.