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Summary
- It has already been a week since video game retailer Roblox Corporation (NYSE:RBLX, RBLX:US) entered the big bold world of stock markets.
- Its shares hit the New York Stock Exchange (NYSE) via direct public offering (DPO) on March 10, under the ticker symbol of ‘RBLX’.
- From its direct listing price of US$ 45 apiece, Roblox stock soared by over 71 per cent to US$ 77 over the past week.
It has already been a week since video game retailer Roblox Corporation (NYSE:RBLX, RBLX:US) entered the big bold world of stock markets. Its shares hit the New York Stock Exchange (NYSE) via direct public offering (DPO) on March 10, under the ticker symbol of ‘RBLX’.
Let’s take a look at how the newbie Roblox stock is doing overall and how its recent financials and userbase performance has been.
Roblox Corporation (NYSE:RBLX, RBLX:US)
From its direct listing price of US$ 45 apiece, Roblox stock soared by over 71 per cent to US$ 77 over the past week. It registered a 52-week high of US$ 78 and a 30-day average share trading volume of almost eight million, as per TMX data.
In 2018, Roblox’s market cap stood at about US$ 2.5 billion. From there, it climbed to US$ 29.5 billion in January this year after it generated a capital of US$ 520 million from a Series H private funding. Then, after its public market debut last week, its market cap swelled past US$ 42 billion in a week’s time.
©Kalkine Group 2021
Roblox’s Userbase Growth
In terms of usage and popularity, Roblox saw its daily active user (DAU) base inflate by 85 per cent year-over-year (YoY) to hit a 32.6 million mark in the pandemic-hit 2020 across 180+ countries, according to its latest SEC filing. To put this growth into context, DAUs on Roblox grew by about 47 per cent YoY from 12 million in 2018 to 17.6 million in 2019.
©Kalkine Group 2021
As the COVID-19 vaccine rollout picks up pace, however, Roblox expects its DAU growth to wind down to about six per cent 12 per cent in 2021. In order to work around the userbase growth slowdown and hitting a saturation point with the younger crowd in the US, Roblox is reportedly looking into reaching out to older demographics and international markets.
Roblox’s gaming approach is based on new and upcoming immersive experiences, which is likely to keep pulling in new users. And the more users shell out on enhancing their avatar experiences, the more Roblox’s revenue expands based on its cut.
Roblox Latest Financials
Roblox Corporations’ annual revenue grew by 56 per cent year-over-year (YoY) in 2019. In 2020, the Californian online gaming retailer saw its revenue grow at a faster pace of 82 per cent YoY to US$ 923.9 million.
Roblox expects an annual revenue of about US$ 1.5 billion in 2021, which would be a 64 per cent growth YoY.
The company accumulated a net cash of US$ 524.3 million from its operating activities in 2020, up from that of US$ 99.2 million in 2019. Roblox’s free cash flow amounted to US$ 411.2 million at the end of 2020.
