Roblox Corporation's performance since its listing. Source: tradingview.com
It is an online multiplayer game that allows you to create your own open-world games and share them with other players. Simply put - it is a virtual universe that allows you to create and share experiences with others through 3D.
The game was created by Roblox Corporation, an American video game developer based in San Mateo, California. The company was founded in 2004 by David Baszucki and Erik Casselo, the latter being the creator of the legendary game of the same name, which launched in 2006. Few people know that its development began two years earlier in Spain under the original name DynaBlocks.
When installing Roblox, users also download Roblox Studio, where they can create their own games, get a game menu called Robux and even get real money.
Roblox is essentially a global community of developers. According to the official website, millions of active users spend more than 1 billion hours a month online playing Roblox, through games like Jailbreak and MeepCity. According to published information, these creators earned approximately $100 million in 2019, which is $70 million more than in 2018.
Shares of Roblox Corporation began trading on the NYSE (New York Stock Exchange) on March 10, 2021. As of May 10, 2022, they were valued at $23 per share, representing a significant 70% decline in value over the past year. They reached their highest value in November 2021, when their price fell below $130 per share. On the contrary, the lowest value was recorded after the announcement of financial results for the first quarter of 2022, when the price stopped above USD 21 per share, which is less than at the time of the company's listing. *
Roblox announced its financial results after the end of Tuesday's trading day. According to published data, it lost 27 cents per share. Analysts polled by FactSet had expected a loss of "only" 22 cents per share.
The company also announced that the number of reservations decreased by 3% year-on-year, which is 8 to 10% less than in April. It had an average of 54.1 million daily active users during the period, up 28% from the same quarter last year. The number of hours spent on the platform also increased to 11.8 billion, which is 22 percent more.
Sensor Tower named Roblox as the biggest mobile game of 2020 in the US in terms of revenue. This surpassed rival game Candy Crush, which held the top spot for the previous three seasons. We'll see how Roblox fares in the near future. However, it's important to note that the Metaverse trend on which the game is based is moving the world, which may be a good foundation for its future growth. [1]
* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or the current economic environment, which may change. These statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied in any forward-looking statements.
