How does Roblox (RBLX) bet on the metaverse and become a more than $70 billion giant?
Recently, the word “METAVERSE” became very popular.
Firstly, Facebook changed its name to Meta , followed by Microsoft Ignite conference announcing Mesh and the gaming platform, it will fully get into it, and today there are AMD, Nvidia and other giants in the market.
However, there are new entrants like Roblox, which was founded in 2004. David Baszucki, the founder of Roblox, thinks that Roblox has built its own metaverse from that moment.
David said ”we have predicted the the project, which can gather the folks together in our 17-year-ago business plan. In the past 17 years, we have kept innovating in this field.”
Metaverse First Stock-Roblox
Roblox has been hailed as the groundbreaking work in metaverse games, establishing an open platform and incentives for creation in a completely player-driven, decentralized world. Roblox is a global massively multiplayer game creation platform that connects gamers to the real world, allowing anyone to explore tens of millions of immersive 3D games built by a global community of developers, providing a space to imagine, create, and connect with friends.
Roblox debuted on New York Stock Exchange on March 11, 2021, as the first metaverse stock with a $45 billion valuation on its first day. Roblox has attracted more than 7 million freelance game developers as a game creation platform, with a community of more than 18 million games played over 22.2 billion hours and 5.7 million people online. These are actual numbers that are written in the prospectus. Roblox’s new narrative and unique business model made the tech investing world on fire, and it was once called the first stock in the metaverse.
Roblox shares surged 50% after announcing the financial report, with a valuation of over 70 billion USD.
It’s a good timing to prove Baszucki’s comments now, as Roblox has just released its Q3 financial report.
According to its financial report, the revenue of Roblox grew 102% year-on-year to $509.3 million, according to its earnings report. It’s up 28% from the same quarter in 2020. The company’s average daily active users (DAUs) were 47.3 million in Q3, with a year-on-year growth of 31%. Roblox users spent a cumulative 11.2 billion hours on the platform during this quarter, with a year-on-year growth of 28%.
Affecting by the reports, Roblox shares have surged 50% in the past seven days to close at $126.12. Roblox is now valued at more than $73 billion based on its latest share price.
The pioneer of metaverse
In fact, the gaming platform was popular with American children long before the metaverse became popular. In August 2020, Roblox had 164 million active monthly users, and it claims that half of all U.S. children under the age of 16 are playing Roblox. In the new era, we need the new idea to innovate, and in recent years, the COVID-19 pandemic has further promoted the growth of Roblox user registration. The letter which the company sent to its investors after its financial report was upbeat about the future.
Roblox may not represent the metaverse, but as a pioneer of the metverse, it already led us to the new world.