Roblox, the $30 Billion Indie Game Market, is Set to IPO Today

roblox mobile
Roblox Corporation

Let us remind you of a familiar scenario that you’ve probably been in countless times - you’re waiting for your flight. While you’re silently getting lit to your embarrassingly ratchet playlist or listening to your latest audiobook, you’re taking in all the sights around you. The one thing that sticks out to you is how most of the kids in your vicinity are neck-deep into their tablet and haven’t looked up for the past 30 minutes. Your curiosity peaks as you start to wonder about what exactly is grabbing all those kids’ attention.

The most likely reason for their laser-like focus is a super addictive game called Roblox. Since debuting on PC back in 2006, the online gaming platform and game creation system has exploded in popularity among the younger crowd. Marketing blog Backlinko delved into the game’s usage statistics and came away with some astounding numbers - the game currently has 36.2 million daily active users, seven million developers, 5.7 million concurrent users, and over 18 million games created thus far.

As a free-to-play experience, the game has managed to rack up an astounding amount of revenue. Market and consumer data site Statista easily down just how much money Roblox brought in last year. “In the third quarter of 2020, gaming company Roblox Corporation generated total revenues of over 242 million U.S. dollars,” said Statista research lead J. Clement. “This figure is up from the previous quarter's revenue of 189.7 million U.S. dollars. The company generates almost all of its revenue through the sales of their virtual currency, 'Robux,' which players can use to purchase virtual items sold by the Roblox developer and creator community on the platform.”

As of today (Wednesday, March 10), Roblox has officially hit the New York Stock Exchange with a reference price of $45 a share. According to Reuters, shares of the debuting stock were already set for a 44% increase. Barron’s relayed even more good news about Roblox’s incredible chances of winning on the stock market - “With about 652 million shares outstanding, the reference price indicates that Roblox’s market capitalization could be as much as $29.3 billion.”

Getting in on all the Roblox hype is clearly a must at this point. Its presence continues to grow in the gaming space and has already planted its foot in the live events spectrum. Back in December, Lil Nas X took to the platform for a concert experience that was a massive success. Roblox developers continue to produce fresh experiences and receive substantial payouts, while the players themselves continue to become enraptured by everything it has to offer. So as an investor, it’s definitely worth taking a financial chance on one of the biggest game creation platforms on the market.

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