Media streaming enterprise Plex secures $40 million in funding, approaching profitability

Plex, a media streaming company, recently secured new funding. Initially a media organization startup, Plex has evolved into a comprehensive media platform offering ad-supported streaming, which significantly contributes to its revenue growth. The latest funding round, although initially rumored to be larger than Plex’s previous $50 million round, is confirmed at $40 million by a company representative. This investment is expected to bolster Plex’s drive towards profitability, anticipated by the end of this year or early next year.

Keith Valory, the CEO of Plex, acknowledged the completion of this funding round but did not reveal the company’s current valuation. Despite his light-hearted remark about seeing himself as a “unicorn,” the actual value of Plex remains undisclosed, as it hasn’t sought external funding recently, preferring to rely on its existing investors.

This new funding is an internal round, involving current Series C investors, including Intercap and Kleiner Perkins. Details of this Series C-3 round will be released in future securities filings.

Valory praised Plex’s investors for their support and noted that funding has never been a major concern. Plex has undergone several transformations, evolving from a home media organizing software to a multifaceted platform. Users now have access to free, ad-supported content, music, live TV, personal media, and new discovery features. The company is also developing social features, like tracking and sharing viewing habits with friends, and aims to enhance community engagement for both content owners and users.

Plex announced at CES the upcoming launch of a TVOD marketplace, allowing users to rent shows and movies from major studios. Ad-supported streaming has been a key revenue driver for Plex, with ad revenue growing by nearly 45% in 2023 and overall business growth of 30%. Despite a market downturn and subsequent layoffs, Plex is on track for profitability by late 2024 or early next year.

Valory emphasized Plex’s market leadership and its unique data perspective, which tracks user media discovery and consumption. He mentioned the company’s plans to monetize this data in a privacy-conscious manner, suggesting this could significantly augment their business growth in the coming years.