Roblox CEO David Basutski
Roblox, whose online gaming software was hugely popular with children during the pandemic, filed its IPO prospectus on Thursday, joining a growing harvest of companies trying to go public before the end of the year.
Third-quarter revenue jumped 91 percent from a year ago to $ 242.2 million, Roblox said in a statement. Its net loss has more than doubled to $ 48 million. The Roblox platform contains millions of games that can be played on Apple, Google and Amazon devices, as well as on consoles.
Airbnb, DoorDash and online lender Affirm also applied for publicity last week, taking advantage of a post-election rally in US stocks and investor demand for high-tech names. The companies are trying to enter the market between Thanksgiving and Christmas, those familiar with their plans told CNBC last week.
Roblox was founded in 2006, but has never seen a year like 2020. Daily active users have almost doubled over the period ended in September to 36.2 million. An indicator that the company calls “hours worked”
Most popular with children, Roblox allows users to create an avatar that they can move to the titles. The games are free and the company sells a digital currency called Robux, which can be used to buy virtual goods and enhance the characters. Roblox also generates revenue by allowing users to rent servers to host virtual birthday parties and other gatherings that are especially popular during the pandemic.
“We experienced rapid growth in the three months ended 30 June 2020, 30 September 2020 and for part of the three months ended 31 March 2020, due in part to the COVID-19 pandemic, given that our consumers are online more as a result of COVID-19’s global on-site shelter policies, ”the company said in a statement.
The Roblox statement fell into the hands of investors just over two months after gaming company Unity held its IPO. If investors value Roblox compared to Unity, the company expects a high debut.
Unity has just reported third-quarter revenue growth of 53% to $ 200.8 million and is estimated at $ 32 billion. Roblox is bigger and grows faster. Based on a comparable multiple of annual revenue alone, Roblox will cost more than $ 37 billion. That’s compared to $ 4 billion in funding earlier this year, led by Andreesen Horowitz.
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