Moth+Flame Revenue, Valuation & Funding (2024)

Moth+Flame generated $10.6M in revenue in 2024.

Moth+Flame generated $5M in total revenue in 2021, up from $2.5M in 2020, representing 100% year-over-year growth. Of the 2021 total, $2M was recurring subscription revenue, compared to $200K recurring in 2020. In December 2021, Cornish told Latka the company had recorded $280K in SaaS revenue in a single month, implying an annualized SaaS run rate of approximately $3.4M.

Moth+Flame had between 15 and 20 total customers as of December 2021, with Cornish citing 15 as the working figure during the interview. Named customers include the US Air Force and Accenture. The average contract value across the customer base is $78K per year, equivalent to $6,500 per month on the per-experience pricing tier.

Pricing operates on two models. For experiences with a smaller addressable user base, the company charges $4,500, $6,500, or $8,500 per month depending on features. For off-the-shelf content targeting larger user bases, pricing is $180 per seat per year. The company launched its off-the-shelf content marketplace in September 2021 and added customers in each subsequent month through December 2021, reaching five marketplace customers by that point. Cornish said the target was approximately five new marketplace customers per month by February or March 2022.

Moth+Flame generates revenue through two streams: recurring subscription licenses for its off-the-shelf VR content library and per-experience platform access, and non-recurring engineering fees for custom studio production. In 2021, recurring revenue was $2M of the $5M total; non-recurring services accounted for the remaining roughly $3M.

Subscription gross margin was approximately 75% to 80% as of December 2021. Services gross margin was approximately 50%. The company's Air Force suicide prevention program illustrates the license model: Moth+Flame created the content and sold 10,000 user licenses in year one, expanding to 25,000 licenses in year two. Cornish described this as analogous to selling tickets to a movie, with the enterprise buyer paying only for usage rather than bearing large upfront production costs.

The Accenture relationship operates as a reseller arrangement, with Accenture building a child welfare worker training library on the Moth+Flame platform. One state using the program reported that 50% of child welfare workers previously quit within the first 12 months; after introducing the VR experience into the hiring process, churn was cut by 30% in the first year of use. Cornish cited traditional e-learning content as having a 20% effectiveness rate, positioning VR as the higher-efficacy alternative. Profitability was not discussed in the interview.

Moth+Flame had 39 total employees as of December 2021. Of those, 19 were on the product and engineering side. The remaining 20 employees were not broken down further in the interview.