In terms of income, the company’s namesake “Roblox” game will be the most popular mobile game in the United States in 2020.
It topped “Candy Crush,” the most popular game for the previous three years. At the end of 2020, Roblox had 32.6 million daily active users, increasing 85 percent from the previous year. In the past year, revenue increased by 82 percent to $924 million. According to the Roblox IPO filing, it reported a net loss of $253 million in 2020, compared to a $71 million loss the previous year.
Roblox’s user population is particularly youthful, with 60% of its users being under the age of 16. It’s based on the freemium model. You may enter into the Roblox Universe for free by downloading the app and then purchasing Robux, which is the game’s money. Roblox takes a 30% cut of whatever income is generated. Like the App Store model, the developer, whoever created whatever element of the platform it’s being utilized on, gets 70%. Today is Roblox’s earnings report day. We’re afraid we don’t have any new findings to offer.
However, it was particularly excellent in the second quarter. Roblox’s income more than doubled year over year. They’re still losing money, but who cares when you’re double revenue? As long as the loss is manageable, which it is, who cares? Bookings, or income from those who buy Robux but haven’t spent them yet, are up 35 percent year over year, which is outstanding when compared to the pandemic shutdown-plagued second quarter of 2020. Based on post-shutdown data, they’re still increasing, which is really astounding. Daily active users went up by 29% year over year to a little over 43 million.
Roblox is unique among online gaming platforms in that it allows players to develop their own games. The earnings from a game, such as the sale of virtual clothing and avatars, go to the developers, who get 30% of the money.
Roblox announced its third-quarter profits on November 9. In the September quarter, the business recorded $637.8 million in bookings, up 28 percent year over year. In the third quarter, average daily active users climbed by 31% year over year to 47.3 million. Users increased by 29 percent to 43.2 million in the second quarter, indicating an acceleration in growth. In the September quarter, time spent on the platform increased by 28% year over year to 11.2 billion hours. The number of engaged hours increased by 13% to 9.7 billion in the second quarter.
The Roblox stock direct listing IPO took place on March 10 with a recommended price of 45 per share. With a direct listing, no new business shares are created or sold. The Roblox IPO also failed to attract any funds. Instead, when trading begins, current investors begin selling their existing shares based on demand. Roblox shares ended at 69.50 on March 10, up more than 54% from its IPO price of 45. A significant price gain on the day of the IPO implies substantial institutional support.
