Virtual world operator FlowPlay turns a profit, tops 5 million users |
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Virtual world operator FlowPlay turns a profit, tops 5 million users
We're always intrigued when startup companies turn their first profit. And we get even more interested when that milestone is reached within the first year of launching a product. Those two factors came together for FlowPlay in 2009 -- despite a nasty economy which kept other businesses on the ropes.
The Seattle startup -- which operates the virtual world "OurWorld" -- hit cash flow break even in November. It also said that revenue grew by 23 percent month-over-month in December. And the positive numbers don't stop there.
Even more impressive, FlowPlay's user base has been accelerating in 2010. The company said it now has more than five million registered users, with 600,000 of those participants joining the virtual world last month. As the number of users have increased, so have FlowPlay's monetization efforts.
The company said that users spent an average of 36 minutes on the site during 6.8 million sessions last month. Meanwhile, revenue per monthly active user jumped to more than $1 per month during January.
“We’re very happy with the growth of ourWorld," said CEO Derrick Morton, a former RealNetworks exec. "Particularly considering it’s a profitable product that we’ve spent less than $10,000 marketing in the past year.”
Developed for kids between the ages of 12 to 16, "ourWorld" costs $5.99 per month for the premium service. Users also pay for virtual goods – furniture for apartments, clothes for characters and gifts for friends. Players pick an avatar, then outfit condos, play games or chat with friends.
FlowPlay didn't break out its paid subscriber numbers.
But, given the recent results, I wouldn't be surprised to see some suitors knocking on the door of FlowPlay. After all, when Disney purchased Club Penguin for $700 million in 2007, that virtual world startup had a reported 700,000 paying subscribers.
Hypothetically speaking, if 10 percent of FlowPlay's user base paid the monthly fee, that would be 500,000 paying subscribers.
FlowPlay raised $1 million last summer and $3.7 million from Intel Capital and angel investors in 2008.
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