- General
- March 9, 2019
- 4 minutes read
Improbable Revenue Down, Losses Mount
Improbable co-founder and chief operating officer (COO) Peter Lipka Photo by Harry Murphy / RISE via Sportsfile Improbable – the…
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| Improbable co-founder and chief operating officer (COO) Peter Lipka
Photo by Harry Murphy / RISE via Sportsfile
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Improbable – the U.K. Softbank backed startup valued at $2 billion – has seen revenues dip, and losses increase, according to the company’s latest financial filings. Per the filings, sales for the year ending May 2018 came at 579,859 pounds ($756,800), down from 7.8 million pounds a year earlier. Pre-tax losses also shot over ten-fold to 50.4 million pounds for the year, up from 4.9 million punds in 2017.
The London based company makes distributed simulation software for video games and also corporate use. It grabbed headlines after a $502 million Softbank led round in 2017, a record for an early stage investment in the UK startup scene. Other investors in the company including China’s NetEase, Andreessen Horowitz, Horizons Ventures and Temasek Holdings.
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| Improbable co-founder and CEO Herman Narula
Photo by Steve Jennings/Getty Images for TechCrunch
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Improbable’s customers have included video game developers like Bossa Studios, Midwinter Entertainment, Automaton, Ninpo Game Studio, Klang Games and even the U.S. Army. A spokesman for the company said – on Friday – that its commercial progress was not reflected by sales, and that “spikes in revenue will occur along the way related to specific contracts.”
“….We are spending money in order to build the team and the technology required to realize success in the future.” He said, likely in address to high losses. As of May 31 2018, the company had about 255 million pounds in cash and cash equivalents on its balance sheet.
