It isn’t all fun and games for Roblox. The gaming platform that became famous overnight due to the pandemic, will become a publicly traded company
Roblox, an online platform designed for playing and
developing video games, was founded in 2004 by David Baszucki and Erick Cassel.
The company will go public through a direct listing this week on the New York
Stock Exchange, joining big names such as Spotify, and Slack.
Roblox became the talk of the town ever since it released
its first financial information in SEC filing in November. According to the
documents, Roblox showed significant revenue growth, increasing user
engagement, and a community of game developers that expanded.
Roblox is riding the growth wave, considering the 2020
numbers. Compared to the previous figures from 2019, its sales almost doubled,
reaching $924 million. At the same time, its daily active users hit 490,000, up
from 184,000.
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In Q1 2021, the California-based company expects to expand
its userbase by 68% and its revenue to double, reaching a high of $335 million.
However, Roblox is aware that the growth might not continue once the COVID-19
restrictions are over. "We do not expect these activity levels to be
sustained, and in future periods we expect growth rates for our revenue to
decline, and we may not experience any growth in bookings or our user base
during periods where we are comparing against COVID-19 impacted periods."
According to its amended prospectus, Roblox plans to sell
198,917,280 shares. The direct listing follows a January founding round, where
it sold 12 million shares at $45 apiece, leading to a $29.5 billion valuation.
Goldman
Sachs, Morgan
Stanley, and Bank of
America are acting as financial advisers of the deal. Roblox will trade
under the symbol RBLX.
Video games will not go out of style anytime soon, as the
COVID-19 still looms. With our features provided by top third parties, you can make
the most out of the price evolution of Roblox stocks wherever you are.
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Sources: thefool.com, finance.yahoo.com, sec.gov
