Immutable records 50% profit surge in 2024 as blockchain gaming thrives

Blockchain game developer Immutable recorded a 50% surge in 2024 revenue, driven by its growing presence in the web3 ecosystem and adoption of its zkEVM gaming chain.

According to Immutable’s filing with the country’s corporate regulator, the firm reported a $50 million post-tax loss in 2023 but has since recovered, the Australian Financial Review (AFR) reported on March 17.

Immutable attributed the downturn to a mix of “regulatory uncertainty,” tightening global monetary policies, and heavy marketing expenses that weighed on its bottom line.

The broader crypto space faced its own struggles, with major events like the FTX collapse and a wave of industry-wide crackdowns adding to the pressure.

Despite the rough patch, Immutable has bounced back.

A spokesperson for the firm said it is “performing much better,” with the company’s 2024 revenue climbing past $110 million, a 50% increase from the previous year.

The report has had a positive impact on the price of IMX, the native utility and governance token of Immutable X. IMX was up over 5% in the past 24 hours when writing.

What led to the growth?

A number of factors contributed to Immutable’s turnaround, with its zkEVM gaming chain playing a major role. 

Launched in partnership with Polygon Labs, the blockchain has quickly gained traction, ranking among the top 20 most-used chains globally, according to Token Terminal. 

More than 250 new gaming partners, including Ubisoft and Tokyo Beast, have joined its ecosystem, further boosting adoption.

Beyond its blockchain, Immutable has been doubling down on web3 gaming.

The company launched a $100 million Inevitable Games Fund, backed by King River Capital and Polygon Labs, to support developers building in the space. 

This investment strategy has helped solidify its position as a key player in the web3 gaming industry.

The firm’s strong financial backing has also played a part in its recovery.

According to the spokesperson, Immutable remains “highly capitalised”, with around $140 million in cash and liquid digital assets, alongside a substantial treasury of IMX tokens.

Among other developments, Immutable’s non-custodial, gamer-friendly Web3 wallet dubbed Immutable Passport has also been well received in the blockchain gaming space.

By October 2024, the number of signups had crossed over 3 million. 

At the same time, blockchain analytics firm Messari reported that Immutable X’s daily active addresses jumped by 91,900% in Q2 2024.

What is Immutable?

Founded in 2018 by James Ferguson, Robbie Ferguson, and Alex Connolly in Sydney, Australia, Immutable started as a blockchain gaming company in a bid to bring true digital ownership to players. 

Immutable is best known for developing Gods Unchained, a blockchain-based trading card game, and Guild of Guardians, a mobile RPG.

Over the years, the company has attracted major investors, including Temasek, Tencent, Animoca Brands, and King River Capital, raising a total of $400 million.

It reached a $3.5 billion valuation, making it one of Australia’s biggest crypto firms.

According to King River Capital partner Chris Barter, the company is on track to become one of the top cryptocurrency firms globally within the next year.

“Within the next 12 months, it will be within the top 20 or 30 cryptocurrency companies in the world.

They’re unlocking multiple revenue streams, and they have a huge amount of runway,” Barter told the AFR.

As previously reported by Invezz in November 2024, the firm received a Wells notice from the US Securities and Exchange Commission over sales of IMX tokens in 2021.

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