About the Gaming App Company
Roblox is an indie gaming and app business that offers a shared digital experience by connecting people through online play and entertainment. The mission of the gaming and app company is to simply bring people together in the millions of immersive 3D experiences offered by the business.
Founded in 2004, the app company has amassed huge numbers across the board. At the end of 2020, the business had 8 million game developers, 20 million available experiences, and since 2008, there have been more than 30.6 billion hours of engagement on the gaming business platform. Additionally, there are more than 32.6 million people across 180 countries playing on the platform created by the gaming and app company. Furthermore, ComScore ranked Roblox as one of the top entertainment platforms for kids and teens in 2017.
In addition, in the first nine months of 2020, revenue grew for the company 68% to $589 million, and the amount of daily active users also increased drastically as a result of COVID-19 — a 97% increase.
Those impressive numbers are further supported by the funding raised by the gaming platform and app business. To date, Roblox has raised $855.7 million in funding from several different investors. The most recent funding round was completed in January, with $520 million raised — a $29.5 billion valuation. The business has even started to feature branded content from corporations like Warner Bros., Netflix, and Marvel, as well as a premium subscription service.
That said, Roblox is still a victim to spammers and scammers that specifically target children due to their naivete. The company spent $264.2 million on ramping up infrastructure and privacy and safety.
All of this success led to the business filing for an IPO, or initial public offering, late last year. The company is expected to go public via the NYSE today. The reference price per share has been revealed to be $45.
With many people confined to their homes, online gaming services like Roblox have made an immense impact in the lives of children and teens as they are able to engage with others virtually, fulfilling the need for social interaction. With Roblox going public, only time will tell if the gaming company can overcome the challenges that may arise when global and nationwide restrictions are lifted.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.