Welcome!

Cognitive Computing Authors: Zakia Bouachraoui, Pat Romanski, Liz McMillan, Yeshim Deniz, Elizabeth White

News Feed Item

Kabam Reports Explosive Growth in 2012

Kabam, the leader in free-to-play games for core players, today announced 2012 gross revenue of more than $180 million, an increase of 70 percent over 2011. The privately held company did not disclose earnings but said the company was profitable in 2012.

“Kabam blew past its plan in 2012,” said Co-Founder and CEO Kevin Chou. “At this time last year we forecast 2012 revenue to grow by 30 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.

“Kabam’s fastest growth is the mobile sector as Kabam games are popular on both iOS and Android devices,” Chou added. “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.

“Free-to-play games are clearly in the middle of disrupting the videogame industry,” Chou said, referring to how players worldwide can access their entertainment via online channels for free compared with the need to purchase a $400 console and individual games for up to $60 each. “And now Kabam is leveraging its franchise IP and technology to become the leader in free-to-play games on mobile devices in the western world,” Chou said.

Kabam is a Series D company with its most recent round of $75 million in May 2011. At the time, Kabam was valued at more than $500 million. Investors include Google Ventures, Intel Capital, Redpoint Ventures and Canaan Partners. Last year Warner Bros. Entertainment Inc. (Warner Bros) and Metro-Goldwyn-Mayer Studios Inc. (MGM) became investors as well, partnering for an investment in Kabam in a purchase of shares from an earlier investor.

“Kabam achieved an enviable list of key financial milestones in 2012,” said Chief Financial Officer Steven Klei. “Complementing our growth was an equally impressive improvement in margins, resulting in a profitable 2012. And 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,” Klei added.

Selected Operating Highlights and Metrics:

  • Kabam’s average revenue per daily active user (ARPDAU) is eight- to nine-times higher than the industry’s largest company.
  • Kabam’s Kingdoms of Camelot: Battle for the North placed first on Apple’s Highest Grossing Apps list for 2012.
  • Kabam became one of the rare companies to have three games simultaneously ranked on the Top 25 Grossing Apps lists for both iOS and Android at the end of 2012.
  • Kabam demonstrated the ability to capitalize on acquired intellectual property (IP) in addition to its internally-developed IP. Kabam and Warner Bros. Interactive Entertainment partnered to co-publish The Hobbit: Kingdoms of Middle-earth for mobile devices, inspired by Peter Jackson’s The Hobbit Trilogy, a production of New Line Cinema and Metro-Goldwyn-Mayer Pictures (MGM). The game became the fastest growing title in Kabam history, becoming one of the top 10 grossing apps in 50 countries in two months.
  • A record seven Kabam games grossed more than $1 million per month in 2012.
  • Kabam demonstrated the ability to grow long-lived franchises as Kingdoms of Camelot became one of the top ten strategy games of all time, grossing more than $100 million since it was launched in September 2009.
  • Kabam diversified its revenue base with significant revenue in each of the key gaming platforms of iOS, Android, the Web and Facebook, compared with year-end 2011 when Kabam’s revenue was essentially 100 percent Facebook dependent.
  • Kabam made several small studio acquisitions in 2012 to expand development capabilities, increase access to key local talent and extend its geographic footprint. The company now has studios or corporate operation centers strategically spread across North America, Europe and Asia. The most recent acquisition is Exploding Barrel Games in Vancouver, British Columbia, Canada.
  • Kabam grew its worldwide headcount to more than 500 in 2012.

Kabam’s gross revenue is a non-GAAP number and is equivalent to bookings in the video game industry.

To learn more about Kabam, join the team, or play Kabam games for free online, visit www.kabam.com.

About Kabam

Kabam, the leader in free to play core gaming, is transforming the traditional gaming industry. The company’s studios focus on combining the best elements of traditional and social gaming to appeal to a growing audience of gamers looking for highly immersive social games on PC, mobile, and tablet platforms. Recent Kabam titles include The Hobbit: Kingdoms of Middle-earth, The Godfather: Five Families, Dragons of Atlantis, Edgeworld, the award-winning Kingdoms of Camelot, and the company’s first mobile game Kingdoms of Camelot: Battle for the North. Kabam has seven titles that gross more than $1 million per month and had three of the Top 25 grossing games on iOS and Android by the end of 2012. Kabam games are currently available for play on iOS, Android, Facebook, Yahoo, Google, Kabam.com and an ever growing number of global social networks and online channels, as well as mobile and tablet. Founded in 2006 with headquarters in San Francisco, Calif., Kabam has built a team of game industry professionals, from scratch in the last three years, committed to creating deeply engaging games that delight our players. More information about Kabam can be found at www.kabam.com.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...