IMVU Doubles Revenue in One Year to Achieve $25 Million Run Rate
Virtual world reaches profitability with success of user-generated virtual goods business
PALO ALTO, Calif., October 5, 2009 -- IMVU Inc., an avatar-based social network and virtual world where people meet and interact in 3D, today announced the company has doubled its revenue in one year to a $25 million run rate and achieved profitability. IMVU grew its revenue primarily by increasing the sale of virtual currency to its members, who use that currency to purchase virtual goods ranging from clothing for their avatars to furniture for their rooms. IMVU's catalog of virtual goods is the largest in the world, with more than 3 million items created by IMVU members.
"We're proud to have grown revenue so quickly at a time when consumers have been cutting their personal spending," said Cary Rosenzweig, CEO of IMVU. "We attribute our success to five years of hard work by our employees and to the creativity of our members. We're investing most of our profits to hire more employees so that we can further improve the customer experience."
Since launching in 2004, IMVU has grown into one of the largest virtual worlds, with more than 40 million registered users and 6 million unique visitors per month. The service offers a simple yet immersive 3D environment where users can customize their avatars and rooms, and meet and interact with other people from around the world.
"IMVU has succeeded because our business model gives users what they want—fresh and relevant content created by our community, for our community," said Lee Clancy, Vice President of Product Management and General Manager of Direct Revenue at IMVU. "More than 35,000 3D developers have sold virtual goods in IMVU's catalog in the last 30 days. These user-developers add more than 4,000 new items to the catalog every day, which enables the millions of users who visit our site each month to enjoy a highly personalized experience."
IMVU Inc. (www.imvu.com) is an avatar-based social network and virtual world where people meet and interact in 3D. IMVU has reached 40 million registered users, 6 million unique visitors and a $25 million revenue run rate. IMVU has the world's largest virtual goods catalog of more than 3 million items, almost all of which are created by its own users. Founded in 2004, IMVU is backed by venture investors Best Buy Capital, Menlo Ventures, Allegis Capital and Bridgescale Partners and is located in Palo Alto, CA.