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Kixeye expects $100m in revenue in 2012 - report

Kixeye expects $100m in revenue in 2012 - report

Thu 19 Apr 2012 9:27am GMT / 5:27am EDT / 2:27am PDT
BusinessSocial Network

CEO Will Harbin claims that its products make 20-times more money per day than an average social game

The hardcore social game developer Kixeye expects to make $100 million in revenue this year, Techcrunch reports.

The figure, from an unnamed source familiar with the company's financials, is included as part of a larger article with input from Kixeye CEO Will Harbin. If accurate, it would represent a huge increase over the $25 to $50 million generated last year.

It would also vindicate the company's strategy of developing more engaging games aimed at a smaller number of core players, in the belief that they would be more willing to monetise the experience - Kixeye is currently ranked 72nd on the Facebook MAU leaderboard

"We haven't sold our souls," Harbin told TechCrunch. "We have found a formula where we can make games that we're super proud of and that are efficient at contributing to our bottom line."

According to Harbin, Kixeye players spend an average of 30 minutes on each session, with its DAUs playing a given game for around 7 months. He also claims that the company makes about 20-times more per-day from each user than an average social game - the average is 4 cents, while Zynga pulls in 6.1 cents.

Kixeye plans to launch its own gaming platform away from Facebook this summer, with a goal of a 50-50 revenue split by the end of next year. It is also planning to grow its headcount by 300 people by the end of this year.

1 Comment

If, as Mr Harbin claims, Kixeye is generating ARPDAU/D of $0.8 and it has been sustaining c. 1m DAU during the last month in which his claims have been made, then the run-rate annual revenues should be c. $300m. To only hit $100m would therefore suggest that a major collapse in monetisation rate or daily users is expected. Or some element of his claim is disengenuous or been incorrectly reported. Either way, the numbers in the article are somewhat difficult to reconcile.

Edited 1 times. Last edit by Nick Gibson on 20th April 2012 10:15am

Posted:A year ago

#1

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