Roblox (RBLX): Set to IPO March 10th

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Roblox Corp said on Tuesday that it expects revenue to double in the first quarter of 2021, ahead of a high-profile stock market launch later this month.

Revenue for the first quarter is expected to range from $320 million to $335 million, according to the company. In comparison to the same timeframe a year ago, this will mark a 98 percent to 107 percent increase.

The company is based in San Mateo, California. Roblox is one of the most popular gaming platforms in the world, with a variety of games available for handheld devices and consoles.

As people sit at home due to the COVID-19 pandemic, there has been an increase in demand for video games.

Last week, Chief Financial Officer Mike Guthrie said the company has “pretty low hopes” for sales in China over the next few years because it plans to spend aggressively to recruit users.

Roblox has said it sees 37.6 million to 39.6 million daily active users in the first year, up 59 percent to 68 percent year over year.

The gaming platform will go public with a direct listing rather than a conventional initial public offering. No shares are exchanged through advance in a direct listing. The stock exchange orders decide the price of the company’s stock on its first day on the market. Advocates contend that it is a cheaper way to price new stock than an initial public offering (IPO).

Roblox Corp. Company Statistics

Roblox will set to trade on the New York Stock Exchange under the ticker RBLX on March 10th

Roblox is looking to sell 198,917,280 shares, but no price has been set. In a private placement in January, the company sold nearly 12 million shares of convertible preferred stock at $45 per share. According to Renaissance Capital, a listing at that price will value the firm at over $29 billion.

Roblox is a gaming platform for kids that features digital characters that look like Lego bricks. It was established in 2004. Every day, 37.1 million people visit Roblox to play sports.

The business is losing money. For the year ended Dec. 31, losses increased to $253.3 million, up from $71 million in the same timeframe last year. For the year ending Dec. 31, revenue increased by approximately 82 percent to $923.9 million. It employs 960 people full-time. According to the prospectus, David Baszucki, co-founder, president, and CEO of Roblox, has 70.1 percent overall voting authority.

Is Roblox a good investment?

In my opinion, I would keep a watch on Roblox stock as they could potentially gain revenue during the 2nd quarter or 3rd quarter of this year. With most of our kids at home during these times, gaming is severely ramping up. Roblox is similar to that of Minecraft, in every house hold if you mention Minecraft or Roblox it is bound that your child plays or came across one of these games. The game is targeted towards younger users where they can build their own environment or play popular minigames.