Stockideas

Roblox Corp
(NYSE:RBLX)
Roblox Corp

Roblox Corporation develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that allows developers and creators to build, publish, and operate 3D experiences and other content. The company also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform. It serves customers i...
Founded: 2004
IPO date: 2021-03-10
IPO price: $48
Full Time Employees: 2,100
CEO / Founder: David Baszucki 
Sector: Entertainment
Industry: Electronic Gaming & Multimedia
Next Earnings Date: 2023-02-14
Stock price: $33.995 (+1.82%)
rblx stock
By: barbapapa lazy guy   💬 25   
   on Nov 18, 2022

This is gonna go much higher. It's how kids learn to code these days. In the future who knows if you can stop the apple and google duopoly in in app purchases their ecosystem would be so much stronger. currently if you make $1 on the platform Apple takes 30% of that and that leaves the devs only a measly 30%. I hope that day comes when kids can create and make their fair share. $rblx


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Costco is selling Roblox toy figures
By: bahnhopf Ich bin gut   💬 25   
   on Nov 13, 2022

Costco is selling their toy figures now. This is a good combination. $cost $rblx


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Roblox Just Made A Huge Mistake
By: ssmlee04 Community Lead :))   💬 98   
   on Aug 01, 2022

https://www.youtube.com/watch?v=YjaRLEAfxuk

https://www.youtube.com/watch?v=YjaRLEAfxuk

They replaced the oof sound to something annoying and uninteresting. At least for me the oof sound reminds me that I was there. Roblox is legit digging its own grave by not knowing what to do and just do nonsense.

$rblx


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Roblox is almost down 60 hours by now
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 31, 2021

This stock is probably going to be hit hard on Monday trading. It's hard to imagine a modern software company with 60 hour downtime. Something is terribly wrong with this company. I am very curious about what the post mortem of this incident would look like. Hopefully this is not one of those cybersecurity textbook cases that wipe out a company overnight.

I wouldn't be surprised if the the stock price went down 20%+ on Monday. 10% seems guaranteed.

p.s: they make like 3m on Apple platform everyday. So by now they'd have lost like 10m revenue easily because of the outage.

$RBLX


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What the Metaverse is and why it matters to you
By: ssmlee04 Community Lead :))   💬 98   
   on Aug 28, 2021

https://finance.yahoo.com/news/what-the-metaverse-is-and-why-it-matters-to-you-090642725.html

$u $fb $rblx these might be good metaverse plays in the next while. we might dress up in virtual dressing rooms in the future. we might be in a virtual meeting room with our colleagues. or we might simply just play games and hang out with our friends in a metaverse. there are lots of things that can happen with this concept.

Metaversians also talk about the Metaverse being synchronous and always live for an infinite number of participants, meaning for instance your avatar will be wandering around this digital world in real time, as seen probably through some sort of glasses, for play, yes, but also for work.

Roblox and Unity seem to be moving already. Roblox is super popular among kids. U is both metaverse and duopoly mobile app development tool so having a bit more exposure to all of them seem like a really good idea.


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Mark Zuckerberg Says Facebook Will Be A Metaverse Company
By: ssmlee04 Community Lead :))   💬 98   
   on Jul 26, 2021

https://www.forbes.com/sites/cathyhackl/2021/07/25/metaverse-weekly-snaps-new-ar-aquisition-roblox-launches-podcast-facebook-will-be-a-metaverse-company-fox-announces-avatar-signging-competition-and-more/

Mark Zuckerberg: Facebook Will Be ‘A Metaverse Company’ In 5 Years

Watch out, Roblox. $fb $rblx


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Some key figures in Roblox S-1
By: ssmlee04 Community Lead :))   💬 98   
   on Apr 21, 2021

https://www.sec.gov/Archives/edgar/data/1315098/000119312520298230/d87104ds1.htm

Roblox is metaverse game that is widely popular among young people. You can create games among games and play it with your friends. You can also be a develop and create games for Roblox and make money from the virtual economy.

Here are some key figures from their S-1:

  • There are over 18m experiences on Roblox.
  • Daily Active Users is around 31m for the first 9 months of 2020, which is around 82% increase from a year ago.
  • Revenue growth is around 70% yoy for the first 9 months of 2020.
  • Average revenue per daily active user (ARPDAU) is around 5 cents. (5 cents is actually pretty low for games but consider they have 31m daily active users the number add up quickly)
  • Bookings grew to around 1 billion for the first 9 months of 2020. (Phew... that is a lot of bookings.)
  • Company is incorporated in 2004 (game release is around 2006. It's impression a game still exist and grows in user base in almost 20 years.)
  • Free Cash Flow grew to $292m for the first 9 months of 2020, which is up from a $6m a year ago. (It's up a mind-boggling 4770%)
  • Users spend an average of 2.6 hours per daily active user each day. Over the same period, our users explored an average of over 20 different experiences on the Roblox Platform per month.
  • They have over 960,000 content creators for the Roblox platform. Some 250 of those developers make over 100,000 or more on the platform.
  • Their losses are 200m for the first 9 months in 2020.

https://i.imgur.com/FobnZkm.jpg

So they lose a lot of money. But at the same time they also grow a lot and spend the money to build a well established community that has people make living there and the community can sustain and grow itself now. And it seems this would continue to be true for the forseeable future.

Now let's take a deeper look into the financial statements in the S-1.

https://i.imgur.com/vd6CXDv.png

So they pay a lot for their cogs, developer exchanges, r&d, infrastructure... etc. The very interesting thing here is they don't spend a lot of money (comparably in terms of revenue %) on their marketing. One of the explaination of this is that the game is widely popular and can spread by word of mouth so that you don't need to go about advertise this game. This could also mean in the future if they decide to do that maybe their revenue growth or booking could skyrocket through the roof. Or maybe they're just pretty lazy at doing marketing. :$

https://i.imgur.com/t84Ys0M.png

So their Average Bookings per DAU went up 50% in year 2020. If this is an ongoing trend then this could mean something. But at the same time it could also be an one off event that once people are done spending their Covid checks this number could go back to normal. It would take a few more more quarters to see where this number can end up in the long run.

Daily active users also go up a lot in 2020. Could be an one-off Covid thing too.

Some bookings numbers:

https://i.imgur.com/CmU95dv.png

So as expected most of the revenue are based in North America. But also there seem to be some growth in Europe and rest of the world and the percentages are getting a bit higher in Europe.

Overall this looks like a very interesting company to invest in. With a company this popular and interesting I'd say having a 2-3% exposure to it would make a lot of sense at any price levels. But it's already a company that's richly valued. They're currently traded at 45 times their 2020 revenue, which is VERY expensive. Also according to them that this level of growth is largely because of Covid and is not sustainable. So you might never see a revenue growth of 70% again in the future.

So, good luck with your investing. Do your own dd and invest carefully.

p.s: Lock up period for Roblox is 180 days.

https://i.imgur.com/EwizIHd.png

long $rblx


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