Israeli translation company Babylon released its 2010 annual report, showing a record in revenues: about US$33 Million for the year. Profits were approximately US$5.8 Million for the year. Here are some highlights from the annual report and from an interview with Babylon CEO Alon Carmeli which appeared in the Israeli newspaper TheMarker.
- Babylon has passed the 100 Million user mark.
- Babylon shifted its business strategy. Instead of just selling software licenses, Babylon now provides a wide range of free services and monetizes them through advertising.
- Sales of software licenses declined by 10% (US$15.5 Million) but was more than offset by a 123% increase in advertising revenues (US$17.5 Million). The boost in advertising revenues is in large part due to a cooperation agreement which Babylon signed with Google.
- Babylon’s strongest markets are Germany, Italy and Brazil. But the countries which provided the most growth for Babylon were India, Turkey and Poland. The growth in low-income, emerging markets can be attributed to the ‘freemium’ business model which Babylon has adopted, since people in those countries would find it hard to afford software licenses.