Expectations are high: Roblox dares to go out onto the floor

The expectations are high
Roblox dares to go out onto the floor

The online video game platform Roblox is definitely one of the Corona winners: In the past year, the number of users has almost doubled. The platform, which is particularly popular with children, is valued by investors at just under 30 billion dollars – it has not yet been in the black.

The online video game platform Roblox has developed into a virtual playground for children during the pandemic, and now it wants to conquer Wall Street. The company from San Mateo, California, lists its shares on the New York Stock Exchange (NYSE), and expectations are high. The NYSE set the reference price for the paper at $ 45, which corresponds to an overall valuation of around $ 30 billion.

Roblox was founded in 2006, and users can also develop their own online games there. The platform benefited greatly from the Corona crisis, and the number of users almost doubled last year. The provider's online games are particularly popular with children under the age of 13. Roblox also offers its own digital currency called Robux, which can be used for purchases within the gaming world, but can also be exchanged for real money. The company has not yet been in the black, with Roblox making a net loss of $ 253 million in 2020.

Black numbers a long way off

According to CMC Market, that should not change in the coming year. On the contrary. "As the company continues to expand, Roblox will pay the developers ever higher fees, as the company itself admits," says market analyst Konstantin Oldenburger. Investors shouldn't expect the company to become profitable anytime soon.

Roblox enjoys a first mover advantage in this niche market, according to CMC Market, and differs from professional game developers like Unity Software and Epic Games, which are aimed at professional developers. Roblox's core platform, while free, does encourage content creators to monetize their content by adding in-game features or creating clothes, accessories, gestures, and emojis for the Avatar Marketplace.

The premiere on the NYSE is not a classic IPO, but a direct placement. The papers are listed directly on the stock exchange without a prior pricing procedure. Larger companies such as Spotify or Slack had previously opted for this rather unusual, but cheaper option.

. (tagsToTranslate) business (t) IPOs (t) video games