Kabam, the leader in free-to-play games for traditional players, today
announced 2013 gross revenues of more than $360 million, a 100 percent
increase over 2012. The privately-held company has been profitable and
cash flow positive since 2012.
"For the second consecutive year, Kabam blew past its plan," said
Co-Founder and CEO Kevin Chou. "A year ago, we forecast 2013 revenue
would grow by 50 percent to $270 million. Six months ago we raised the
forecast to $325 million. To close the year topping $360 million is a
testament to the innovation, creativity and collaboration of more than
750 Kabam employees around the world who are focused on keeping Kabam
the leading freemium games company for traditional players."
In a year when Kabam was named one of the top 50 disruptive companies by
leading business network CNBC, Kabam's revenue was largely generated
from games on the mobile platforms offered by Apple, Google and Amazon.
However, Kabam still generates about 30 percent of its revenue on the
Web via its own platform Kabam.com and its long-time partner Facebook.
"The disruption of the traditional video game industry is accelerating
with Kabam and other freemium companies commanding 22 percent of the
worldwide games market," Chou said. "A new generation of consoles was
introduced last year and initial sales appeared encouraging. However,
over time, free-to-play mobile gaming revenues will dramatically
overtake traditional game sales as more people worldwide download and
play games on smartphones and tablets from freemium content companies
"Kabam's growth in 2013 was even more impressive because we
simultaneously grew at 100 percent and improved the underlying economics
and margins. These improvements allowed us to make significant and
increasing investments in the future," said Chief Financial Officer
Steven Klei. "We are explicitly managing the company to maximize key
investments and initiatives which are designed to emphasize long-term
value creation over short-term profit margins.
"The company's cash position is equally strong, with more than $70
million in the bank and a robust financial outlook for 2014," Klei added.
Selected Highlights and Metrics:
Kabam is the leader in the western world for free-to-play games for
traditional players with first and third party published titles
available on mobile devices via the Apple Store, Google Play, Amazon
Appstore, and on the Web via Facebook, Yahoo, Kabam.com and other
platforms. Kabam is the fastest growing Internet media company in the
San Francisco Bay Area and the 17th fastest growing company overall in
the U.S., according to Deloitte LLP. Kabam's 2013 revenues exceeded $360
million, a 100 percent increase over 2012. The company is profitable and
cash-flow positive, and has created four titles that have grossed more
than $100M each in their life. Kabam's Kingdoms of Camelot
franchise has grossed more than $250 million in less than four years,
making it one of the top 10 strategy franchises of all time. In 2012,
Kabam Publishing was launched to provide third-party developers access
to Kabam's technology platform, distribution channels, data analytics
and best practices that Kabam's in-house development teams use to bring
wildly successful games to players worldwide. Kabam has approximately
775 employees across three continents, with corporate headquarters in
San Francisco. The company's investors include Google, Warner Brothers,
MGM, Intel, Canaan Partners, Redpoint Ventures, Pinnacle Ventures and
others. More information about Kabam can be found at www.kabam.com.
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