The company behind Roblox files to go public
By Bob Garcia
The online games hub filed its IPO yesterday with the Securities Exchange Commission
A video game company out of California who made a killing with one of its titles is going public. Roblox, an online games hub and the name of the popular video game, filed for an initial public offering (IPO) yesterday with the Securities Exchange Commission (SEC) and plans on making an appearance on the NYSE. If everything goes well, the IPO will attract as much as $1 billion for the company.
Roblox has over 31 million daily users for its Roblox title and its other free games. While most video game publishers are looking to increase the price per game to $70, Roblox puts all of its titles out there for free, earning revenue through the sale of in-game currency called Robux. The model seems to be working, too, since Roblox was valued at $4 billion this past February after it completed a $150-million Series G funding round.
In its IPO filing with the SEC, which would lead to the company being traded under the ticker symbol RBLX, Roblox explained, “Although the COVID-19 pandemic has caused general business disruption worldwide beginning in January 2020, it has resulted in an increase in our operational performance, cash flows, and financial condition. We believe that the COVID-19 pandemic could accelerate adoption of our platform, which we expect will generate additional opportunities for us in the future. However, this increase in engagement and monetization may be temporary and will likely moderate over time as shelter-in-place orders and other related measures and community practices evolve.”