Roblox is relying on adults to buy its shares when the company goes public next month. But he also wants them as customers.
Roblox has become one of the highest revenue apps on Apple and Google devices thanks to millions of games that allow kids to hang out with their friends while cruising theme parks, running on highways and adopting pets.
As children sat at home during the pandemic, income rose 82% to $ 923.9 million in 2020, while hours spent on the platform more that doubled to 30.6 billion. Players spend money to dress up their avatars and get advanced features games.
Seeking a future of continuous expansion and less reliance on children, especially with the reopening of real-world classrooms and theme parks, Roblox is targeting older users and non-gamers. As the company says in its prospectus, people over the age of 13 “have a greater propensity to spend on content, and our ability to increase user penetration and contribution from these demographics will impact our ability to increase our income. ”
This was one of the key messages from Roblox’s online presentation to investors on Friday, ahead of the company’s scheduled IPO on March 10.
In addition to entertainment and events, Baszucki sees schools using Roblox for immersive educational courses. Instead of learning physics on a video call with dozens of other students, “we can embark on the physics experiment together,” he said. Or instead of learning more about birds, “we can be birds together” hunting for food and seeing what it’s like to try to survive, he said.
In the question and answer portion of the presentation, Roblox executives said they would provide financial advice next week.
For now, Roblox is a gaming app loved by kids and tolerated by parents looking for ways to keep their kids busy. That pushed its valuation to $ 29.5 billion, according to a funding round in January.
Roblox spent $ 201.4 million on research and development last year, up 88% from 2019, in part to develop new types of products. Whether older users are willing to pay for these virtual experiences the same way they pay for their children’s entertainment is a big question for investors as they reflect on how to assess the stock.
Roblox Game – Roblox hunts older users for games and virtual concerts as he prepares for direct registration
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