Crypto gaming unicorn Immutable bounces back after earnings fall

The Australian developer behind popular online games Gods Unchained and Guild of Guardians says it has turned around big losses

Crypto gaming unicorn Immutable is back in the black after reporting a major loss in its belatedly filed 2023 financial results, and disclosed that a new blockchain it launched last year is now one of the most used in the world.

The Australian developer of popular online games Gods Unchained and Guild of Guardians said it swung to a small profit in the six months to March 31, after a large net loss in the prior period, and revenue also dropped.

However, Immutable also said it had launched a new blockchain in partnership with the open-source community last year, and it is now one of the most used blockchains in the world.

New data from DeFi Llama shows that Immutable X, the Layer-2 scaling solution for NFTs built on StarkWare’s technology, is the fifth-largest blockchain in terms of total value locked (TVL).

At last check on Thursday, Immutable X had a total of $1.06 billion in TVL, compared with $1.2 billion for Solana and $3.3 billion for Binance Smart Chain.

As of 30 March, 2023, Immutable had a small net profit of $1.4 million, a reversal from the $62.3 million net loss it reported in the six months to December 31, 2022.

Revenue decreased to $10.3 million in the first half of 2023 from $16 million in the second half of 2022.

The company, which is valued at $3.5 billion, also disclosed that it had raised $280 million in capital last year, to take total funding to about $400 million across multiple rounds at the height of the zero interest rates era technology bubble.

Founded in 2018, Immutable develops Web3 platforms and games, including its flagship title Gods Unchained, a competitive trading card game with more than 2 million players worldwide.

In 2022, Immutable announced the launch of Guild of Guardians, a massively multiplayer online role-playing game (MMORPG) that is being developed in partnership with several leading game studios.

The company’s games and platforms are powered by its own blockchain technology, which is designed to be scalable, secure and environmentally friendly.

Immutable’s goal is to revolutionise the gaming industry by bringing the benefits of Web3, such as transparency, ownership and community participation, to a broader audience.

Its shares are up about 36 per cent over the past six months, but they are still down by more than 50 per cent from their all-time high that was reached in late 2021.output