Chapter 391 - 188: 40 Million Profit in 10 Days, 4000% Rate of Return

Chapter 391: Chapter 188: 40 Million Profit in 10 Days, 4000% Rate of Return

DAU, or Daily Active Users.

This metric is a strong indicator of a game’s current popularity.

To get a game’s DAU to nine million in just three days is incredibly astounding.

With numbers like these, any game would be considered an undisputed blockbuster.

And this is only the data from the third day. There’s still plenty of room for growth.

After hearing Jiang Huiyang state the game’s DAU with his own mouth, Xu Xiyue, who had been holding her breath, could finally relax a little.

Five million DAU yesterday, and an estimated nine million today.

With this kind of DAU just two or three days after launch, the game was pretty much a guaranteed success.

Even if future growth wasn’t ideal, based on the current data and performance, her investment could in no way be considered a failure.

It might not be a runaway hit, but it was definitely not a loss.

"Five million DAU yesterday... what was the ad revenue?"

Xu Xiyue immediately turned to Jiang Huiyang, her concern evident as she asked.

DAU is important, but so is revenue.

"Ad revenue is calculated based on a combination of factors, including watch time and the number of views."

"Because our game’s ad slots are relatively long, the average revenue per ad view is about 0.1 yuan."

"The average user watches three ads. Based on yesterday’s five million DAU, the ad revenue before the platform’s cut was about 1.5 million yuan."

"If the DAU reaches nine million today, we project the ad revenue before the split to be around 2.7 million yuan."

Jiang Huiyang didn’t even need to look at the data; he knew it all by heart. He reported the revenue figures directly to Chen Mo, Xu Xiyue, and the others.

"1.5 million before the split yesterday?"

"And a projected 2.7 million before the split today?"

Hearing these figures, looks of astonishment once again appeared on the faces of everyone in the conference room.

This daily revenue was nothing to scoff at, especially for a free-to-play mini-game.

For players to generate this much revenue for the company in a single day just by watching ads, it seemed the gamble on the game’s loop design had really paid off.

Otherwise, why would players willingly sit through ads that were tens of seconds long?

As for the platform’s cut, WeChat gives developers of ad-monetized Mini Programs a 50% revenue share.

In other words, yesterday’s pre-split revenue was 1.5 million, which meant the post-split income was 750,000 yuan.

If today’s projected ad revenue is 2.7 million, the post-split income will be 1.35 million.

The platform takes half right off the top.

However, for users acquired through the platform’s ad-buying service, there’s an additional ad credit bonus.

This includes a 40% incentive on ad revenue within the first 30 days of a user’s registration, and a 10% incentive on revenue from days 31 to 90.

All told, the combined incentives could be as high as around 35%.

But these ad credit bonuses aren’t paid out in cash; they can only be used for future ad placements.

"This revenue is excellent."

Chen Mo nodded in satisfaction after hearing Jiang Huiyang’s report.

Even with only a 50% split, at a scale of five million DAU, the daily income was still 750,000 yuan.

For a mini-game with a total investment of under two million yuan, this was already an incredibly high income.

Moreover, the game hadn’t even reached its peak yet; its revenue was far from its highest potential.

It still had strong potential for growth, and this income was set to skyrocket further.

"If today’s DAU reaches nine million, the post-split revenue will hit 1.35 million yuan."

"Adding yesterday’s 750,000, total revenue has already surpassed two million yuan."

"Panshi Venture Capital holds a 50% stake in Pentagon Game, so our share of that is one million yuan. Our investment cost has been recouped."

Xu Xiyue nodded in agreement, silently running the numbers in her own head.

’Panshi Venture Capital had only invested one million yuan in total, and for that, they got a 50% stake.’

’Judging from the situation back then, it was highly likely that even with a 50% stake, that one million would just go down the drain.’

’But now, getting a 50% stake for just one million was an absolute steal.’

’The revenue from just yesterday and today was enough to recoup their entire investment cost.’

’No matter what happened next, there was no way this investment could possibly lose money.’

’From now on, every day’s income would be pure profit for Panshi Venture Capital.’

’Plus, Panshi Venture Capital had a tax exemption policy, so they didn’t have to pay taxes no matter how much they earned.’

’That was a huge advantage compared to other companies.’

"As our game’s DAU continues to grow, the daily revenue will also increase rapidly."

Jiang Huiyang was also very pleased with this income. He looked at Chen Mo with anticipation as he spoke.

’He’d never imagined the game would become this popular.’

’He’d certainly never thought its single-day revenue could surpass one million.’

’Before, he had just wanted to secure funding—to get enough money to finish the game and get it launched successfully.’

’So when faced with Panshi Venture Capital’s offer of one million for a 50% stake, they had no choice but to accept.’

’Looking at it now, that funding round was clearly a huge loss for them.’

’They’d given away a precious 50% stake for a measly one million yuan.’

’Right now, that 50% stake was worth at least ten times that amount.’

’But then again, back then they had gone to every venture capital firm, and no one except Panshi Venture Capital was willing to invest in them.’

’If it weren’t for Chen Mo’s sharp eye for talent and his insistence on investing, if it weren’t for that lifesaving one-million-yuan investment from Panshi Venture Capital...’

’...their team would have disbanded long ago, and the game would have been abandoned, with no one left to develop it.’

’It wouldn’t be worth a million; it wouldn’t be worth a single cent.’

’You could only say it was fate. Jiang Huiyang stopped dwelling on it. All he wanted now was to manage this game well.’