Mobile publisher boasts $360 million in revenues for 2013
Mobile publisher Kabam has revealed it's “seriously considering” an IPO after revenues of $360 million for 2013 – double the figure from the previous year.
Since Kabam is privately held it doesn't have to make financial results public but, having told the Wall Street Journal of a possible IPO, it makes a great deal of sense to try and drum up excitement among investors.
Most of the high-profile IPOs of recent years like Zynga and Twitter have struggled to turn a profit in the months after launch, so Kabam wasn't shy about advertising that its growth in revenue translated into a growth in profit as well.
What it didn't disclose was exact figures showing what that margin might be, so it's likely that profits aren't scaling evenly with revenues.
Even so, this does little or nothing to diminish the achievement of Kabam in the past year.
The company has consistently held a place on the App Store's highest grossing games chart and its latest game, The Hobbit: Kingdoms of Middle Earth, is no exception.
With other hit freemium mobile titles like Kingdoms of Camelot under its belt, 11 of which grossed over $1 million in 30 days in 2013 alone, the company is clearly capable of making products that drive sales.
Kabam says it has 750 employees and cash reserves of $70 million after raising $120 million in private investment, and is valued at $700 million due to a recent transition that allowed workers to sell common stock.