Improbable Reports 85% Reduction in Losses and Doubling of Revenues in 2022
Virtual reality startup Improbable announced that it significantly reduced its losses by 85% in 2022. The British company, which focuses on powering new “metaverse” experiences, reported revenues of £78 million ($95 million), more than double the previous year’s figure. Improbable CEO Herman Narula credited the success to the company’s bet on the metaverse.
Advances in Generative AI and Remote Work Drive Efficiency
Narula revealed that Improbable has been able to ship more products with fewer employees thanks to generative artificial intelligence (AI). Coders at the company use generative AI daily to write code and find solutions to business problems. Narula also highlighted remote work as a factor in downsizing tech firms and making them more nimble. He believes smaller companies have a better chance of success without having to hire thousands of employees like big tech companies.
Improbable’s Progress in Reducing Costs and Divesting Assets
Improbable’s reduction in losses was partly due to the significant decrease in the cost of running mass-scale virtual events. The company mentioned that hosting one event now costs hundreds of thousands of pounds compared to millions previously. In addition, Improbable divested two games studios, Inflexion Games and Midwinter Entertainment, and sold off a business unit focused on servicing defense clients.
Ongoing Support from Shareholders
Improbable ended the year with £140 million cash in hand, indicating continued support from shareholders such as SoftBank, Andreessen Horowitz, and Temasek.
Improbable’s Metaverse Ambitions
In 2022, Improbable revealed its ambition to become a major player in the metaverse. The company has been collaborating with digital asset players and recently worked with Yuga Labs to build the Otherside metaverse. Improbable also released a white paper outlining its vision for MSquared, a network of interoperable Web3 metaverses. MSquared raised $150 million from investors and aims to provide accessible and decentralized metaverse experiences without the need for a headset.
Hot Take: Improbable’s Metaverse Focus Pays Off
Improbable’s strategic shift towards the metaverse has proven successful, leading to an 85% reduction in losses and doubled revenues in 2022. The company’s use of generative AI and remote work has allowed it to increase productivity while keeping a smaller team size. By reducing costs and divesting assets, Improbable has further strengthened its financial position. With ongoing support from shareholders and partnerships in the digital asset space, Improbable is well-positioned to make its mark in the metaverse industry.
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