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Roblox Files to Go Public

Online video game company poised to catch stay-at-home wave.
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Online video game company Roblox filed to go public Thursday after the market close.

The move comes as coronavirus cases surge and more stay-at-home orders and lockdowns loom, boding well for the company’s prospects as kids and their parents seek more online entertainment.

Roblox users navigate through a virtual 3D world created by other users and developers on the site. Users’ avatars can interact with other players in the so-called metaverse and buy Robux, a virtual currency that can be used to pay for one-time or special experiences within the Roblox world.

Roblox said it currently has 31.1 million daily active users, according to its S-1 filing with the Securities and Exchange Commission.

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The company reported revenue through the first nine months of the year of $588.7 million vs. $349.9 million in the same period a year earlier, according to its filing. It reported a net loss per share attributable to common stockholders of $1.14 vs a loss of 29 cents a share in the first nine months of 2019.

The company cited a number of potential risk factors. “We depend on effectively operating with mobile operating systems, hardware, and networks that we do not control,” the company said in the filing. “Changes to any of these or our platform may significantly harm our user retention, growth, engagement, and monetization.”

Initial public offerings are seeing something of an end-of-year surge. The Roblox filing comes just days after Airbnb filed to go public. DoorDash and Affirm are also reportedly contemplating IPOs, and online investing site Robinhood recently sought financial advisers for an offering in early 2021, Bloomberg reported.