For the 4th quarter ending 12/31/22, Paradox Interactive (PDX.ST) reported year-over-year revenue growth of 49% to MSEK 580 million (about $50 million USD).  For the full year 2022 revenue was up 36% to MSEK 1973 (about $180 million).  Operating profit for the year increased 189% to MSEK 887.


Swedish-based Paradox Interactive is a small publisher that specializes in complex games, primarily for PC.  Popular games like Cities: Skylines, Crusader Kings III, Europa Universalis IV, Hearts of Iron IV, and Stellaris build an audience that stays invested (and monetized) for years through regular expansions and DLC.

Victoria 3 was a major Q4 product launch.  It is the successor to Victoria II from 2010.  Like other Paradox Interactive grand strategy games, Victoria 3 will continue to build a new audience as expansions are released.  For example, Crusader Kings III, which launched for PC in 2020, had multiple 2022 expansions as well as a port to PlayStation 5 and Xbox Series X/S.

Going forward, Paradox is looking to strengthen its core business and increase its focus on live games.

CEO Fredrik Wester commented that “we aim to expand our core as we get ready to release more new games from our pipeline, thereby strengthening our long-term ability to grow revenue and strengthen cash flow. It also means that we enter a more normal state for Paradox, where we may have a higher volatility between quarters.”

We are not quite sure what that means, but we assume it is looking to focus on quality over quantity.  This naturally leads to more volatility between major releases.