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#Gaming #Entertainment

Epic Games is a leading gaming and entertainment company and provider of 3D engine technology. The Сompany makes money from a) developing, publishing, and distributing games, Fortnite - #1 most popular game in the world; b) licensing agreements from its own Unreal Engine; c) taking a commission on sales from games sold on Epic Games Store. Aggressive marketing campaigns offer free games, ensure fast user growth (34 m new users in 2021), and better conversion to paid products; lower commissions than competitors (12% vs 30%) attract the best developers and games on the platform to make extra revenue in the long term.

COMPANY OVERVIEW 

Cary
North Carolina, USA

1991 
founded

Tim Sweeney, CEO
Co-Founder

FINANCIALS 

$5.8 bn
2021E revenue

$2 bn 
last 
funding

$31.5 bn val., Apr 2022
latest venture round

VALUATION

$26.6 bn
July 2022 valuation

2.4x for 1.5-2y  
valuation growth

$63.7 bn
2024F valuation

Epic Games

  • $5.8 bn total revenue in 2021: 13% increase vs 2020 

  • 1.8x valuation growth in April 2022 vs 2020

  • 1.1x last round April 2022 valuation growth vs April 2021, while private markets fell by 10-50%

  • 16% Fortnite user growth to 350 m in 2021, surpassing Minecraft (150+ m players)

  • 21% user growth in Epic Games store to 194 m users (2021 vs 2020)

  • 62+ m monthly active store PC users in 2021, 11% higher than in 2020  

  • 2x game titles growth to 917 titles (2021 vs 2020)

  • 37 investments and acquisitions of gaming studios, platforms, software developers including Bandcamp, Sketchfab, and others 

  • $6.4 bn funding from exceptional investors: T. Rowe Price, Sony, Lego, Lightspeed Venture Partners, Fidelity Management, HOF Capital, BlackRock, and others