Roblox, yes, the children's creative gaming company, was officially listed today on the NYSE under the ticker symbol RBLX. Interestingly enough, Roblox has gone public via a direct listing, meaning that no new shares of the company will be created. Existing shares were sold this morning at a reference price of USD 45, which made the Company’s estimated market cap worth almost USD 30 Billion with a little over 650 Million outstanding shares. Currently, shares of RBLX are trading as high as USD 67.
For those who don’t know, Roblox was founded in 2004 by CEO Dave Baszucki and co-founder Erik Cassel. However, Roblox isn’t your typical gaming company, rather it provides its users with tools to develop and play their own games. There are currently over 10 Million games and 345,000 developers on the platform. Developers can monetize their games and earn 30% of their total sales. Users, on the other hand, can purchase a virtual currency called “Robux” to purchase in-game items such as costumes. Most developers don’t make a substantial amount of money, however, some at the top have reportedly made over USD 20,000 per month. “Roblox wants them to make money, but a lot of them are still not at a point where it’s their livelihood,” said “Bloxbiz” CEO Sam Drozdov. Bloxbiz is Roblox’s advertising platform for game developers.
Roblox’s user demographic generally consists of teens and pre-teens. Its popularity started to wane in the last few years, but that began to change following the pandemic in 2020. As people began spending more time at home, Roblox saw a massive spike in active users, with over 32 Milliondaily active users reported. Last year, the Company paid its developers over USD 328 Million, up approximately 200% year-over-year. Roblox’s 2020 revenue was USD 924 Million, however, the Company reported a net loss of USD 253 Million compared with USD 71 Million the year prior.