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Despite dialling back short-term growth, Kabam's sales hit $400 million in 2014

Tweaking for success
Despite dialling back short-term growth, Kabam's sales hit $400 million in 2014

Although it's not (yet) a publicly-owed company, Kabam has announced some financial figures, as well as a candid assessment of its business over the past 12 months.

For 2014, it's revealed total revenue was $400 million.

This is up 11 percent on the $360 million it announced at the start of 2014.

Kabam points out that 2014 marks its fifth consecutive year of growth.

The F2P publisher has been profitable since 2012 and is now over ten times larger than it was four years ago, and is valued at over $1 billion.

However, April 2014 it predicted annual sales would be in the order of $550 to $600 million. 

Polishing time

"We made 2014 a transformational year by rebuilding our studios leadership team, delaying some games and tightening our focus on high performing games," said Kevin Chou.

"As always, we take the long-term view to ensure satisfied customers, sustainable growth and a slate of new games that will lead the market."

The company has a headcount of more than 800 staff and a cash warchest of more than $150 million.

During 2014, 12 of its games generated more than $1 million a month.

Bump in the road

Aside from revenue growth, 2014 was a pivotal year for Kabam in other ways too.

It sold off most of its web games to focus on mobile, and has hired a new product management team, as well as acquiring US developers Phoenix Age, TapZen and Magic Pixel Games.

It's also tightened up its thirdparty publishing operations, which Kabam says fell significantly short of its revenue forecast, with a new focus on fewer, higher quality games.

Kabam is currently riding high with <em>Marvel: Conquest of Champions</em>
Kabam is currently riding high with Marvel: Conquest of Champions

"While we achieved another record, Kabam's 2014 revenue was not consistent with our initial forecast," Chou explained, referring to that April 2014 forecast.

"One of our newer divisions underperformed and we intentionally dialed down other revenue-generating opportunities to better position Kabam for the long term.

Finally, Kabam received a $120 million investment from Alibaba to prime its entry into the Chinese market; somewhat ironically the majority of Kabam's development talent is already located in China.

Kabam's next significant release is its sequel to its very popular Fast & Furious 6: The Game due in early 2015.

[source: Kabam]