Yesterday at the Startup Lessons Learned conference in San Francisco, Brett Durrett, James Birchler and Timothy Fitz from avatar-based social network and 3D virtual world IMVU took the stage and talked about scaling startups (worth your time).
In this video – I’m not sure how long it has been online already – Rosenzweig boasts about the company’s profitability and cites its annual revenue run rate, which he says is now at $40 million.
This means that if you multiplied the company’s current monthly revenue times 12, you’d get $40 million. Notably, that’s up from a $25 million annual revenue run rate back in October 2009. That’s a lot of growth in income in roughly half a year.
So how did revenue increase? Simple: more users buying and earning credits in the 3D world and buying virtual goods, such as clothing for their avatars to furniture for their virtual rooms.
On a sidenote: in charge of revenue generation at IMVU is Lee Clancy, formerly Senior Director for Community Products at Yahoo.
IMVU was founded in 2004 and is backed by $29 million in venture capital, raised over 4 rounds. The company employs 60 people in Palo Alto, California, according to its website.
In October, the company claimed more than 40 million registered users and 6 million unique visitors per month (numbers they also use on their about page), but I’ve been unable to retrieve more recent numbers.
(Thanks to Kyle Mulka for the heads up)