Roblox, the children’s game program that became very popular during the epidemic, rose to its market debut on the New York Stock Exchange on Wednesday. The company closed at $ 69.50 per share, bringing its market capitalization to $ 38.26 billion.
Roblox was released via direct listing, following the lead of other tech companies, including Spotify, Slack և Palantir. Instead of raising new capital for the new shares, Roblox allowed existing shareholders to sell immediately without expiring.
Shares traded up $ 64.50, up 43% from a private equity round in January when the company traded for $ 45. The NYSE set a reference price of $ 45 on Tuesday, although some securities did not change at those levels. The link price tends to reflect private market trading; it does not indicate where the stock will open.
Based on a full dilution of 652 million shares, which includes limited shares that will be converted into ordinary shares, the company was valued at $ 45.3 billion at closing price.
Roblox enters the market after an explosive growth, primarily from children left at home, as Covid-19 forced schools to close and sports leagues to close. At Roblox, one of Apple և Google’s most lucrative apps, users create avatars that can be navigated through millions of service games by navigating theme parks, adopting virtual pets, and fighting enemies with their friends.
Last year, revenues increased by 82% to $ 923.9 million. However, Roblox’s net loss rose from $ 71 million in 2019 to $ 253.3 million as the company nearly tripled the amount paid to developers through its revenue sharing program. More than 1,250 developers made at least $ 10,000 last year through the virtual sale of their Roblox games.
The New York Mercantile Exchange welcomes Roblox executives and guests (NYSE: RBLX) today, Wednesday, March 10, 2021, as a sign of its direct listing.
Roblox planned to present itself to the public through a traditional IPO late last year. The company postponed its offer after Airbnb և’s DoorDash debut եց devalued their shares, leading to a huge discount for new investors. Roblox opted for a direct listing, with a smaller round of funding in January to reduce the dilution.
The company then delayed its debut again last month, reaffirming its financial position after the SEC scrutinized the way in which Robux recognized its digital currency gains.
Roblox is a particularly difficult company to evaluate because it says nothing about what will happen when the schools reopen and children return to play with their true friends. The company adds content to a larger audience, such as virtual concerts, meetings, and educational experiences, but it still largely depends on the children using their parents’ money.
“Roblox has been growing for 15 years, it is driven by our community, it is driven by great content, it is driven by our creators, it is driven by our ability for people to work together. It’s a long-term growth path, և we believe it continues. “Before, even after Covid,” David Bazuki, Roblox CEO, told CNBC’s “Squawk Box” early Wednesday morning.
Roblox forecasts rapid growth in 2021 Revenues are expected to grow from 56% to 64%, from $ 1.44 billion to $ 1.52 billion. This implies higher revenue per user, as the company sees that the number of daily active users only increases from 6% to 12%, while the total hours of engagement are expected to be approximately the same.
“We set out for 2020 with strong organic growth that was further strengthened by the limits of social distance,” said Robblox Chief Financial Officer Michael Guthrie in a statement. “As these constraints weaken, we expect growth in 2021 to be much lower than in 2020. However, we believe that throughout the year we will see absolute growth in most of our core benchmarks.”
At its opening price on Wednesday, Roblox is estimated to be about 29 times the revenue of 2021, based on the midpoint of its guideline. It is slightly higher than the software developer Unity, which is estimated to be about 27 times pre-sold և significantly higher than gaming companies such as Zynga, Electronic Arts և Playtika, which all have the same numbers.
Correction. This story was updated to reflect that Roblox had a market value of $ 35.5 billion at an opening price of $ 64.50.
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