Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
In response to the high demand in the gaming industry, Roblox recorded about $1.24 billion in sales after the first three quarters of 2020.
Roblox Corporation, a kids gaming platform, has recorded an impressive revenue throughout the last three quarters of the year pending its US stock listing via IPO. Interestingly, this is not much surprising as the gaming industry has benefitted a lot from the pandemic being one of the main sources of entertainment to kill boredom amid the global lockdowns and stay-at-home policies.
According to NDP Group, a research firm, there has been a 24% increase in video games spending year on year taking the total value to $11.2 billion in the Q3 of 2020.
Roblox’s revenue jumped to $588.7 million in the first three quarters of the year which is a 68% increase. However, there was a huge record of net loss by the platform as well. The net loss in 2019 was $46.3 million. Unfortunately, the loss increased to $203 million in the first 9 months of 2020.
According to the report, the loss is linked to the common shareholders. As of September 30, 2020, the daily active user base of Roblox had surged to 31.1 million which is an 82% increase from the 2019 record.
In response to the high demand in the gaming industry, Roblox recorded about $1.24 billion in sales after the first three quarters of 2020. This was a whopping 170% increase from 2019. Following the impressive run of the gaming industry, several gaming firms have gone public with most of them on the verge of floating their shares.
Roblox plans to be listed with the New York Stock Exchange with “RBLX” as the symbol. The Roblox team is already in the process as an IPO of $1 billion has already been filed by the company. The likes of Unity Software U.N. have already gone public since September 2020.
Profane Game Title Said to Affect Roblox Revenue ahead of IPO
Roblox was recently accused of using profanity and offensive words in some of their user-profiles and game titles. According to Reuters, these claims were investigated by typing simple words in Google Search Engine which brought up over 100 inappropriate contents from the Roblox platform.
Some parenting and investor groups raised concerns questioning the ability of the technology and measures put in place by the company to delete offensive and inappropriate contents as well as images that appear on their platform. In response, the company stated that they have zero tolerance for offensive and inappropriate content. For this reason, they use third party machine solution, and proprietary text filtering technology equipped with instructions updated daily to identify and delete inappropriate contents.
This has been said to have an effect on its future revenue as the demand by kids backed by their parents may decrease. On the other side, things may be even better considering their alleged effort of installing systems that easily identify and delete such contents as well as their said zero tolerance on such contents.