Change of Plans; Roblox Won’t IPO This Year

Roblox was founded in 2006, but has never seen a year like 2020. Daily active users almost doubled in the period ended September to 36.2 million. A metric the company calls “hours engaged” more than doubled to 8.7 billion.

The gaming platform now expects to launch its public offering next year, according to multiple reports. Roblox had been expected to go public this month in a billion dollar IPO, joining the late-year surge that has produced yuge deals from Airbnb [$ABNB] and DoorDash [$DASH].

Roblox told its employees in a memo Friday that its listing would be delayed until early 2021. The skyrocketing performances of Airbnb and DoorDash in their IPOs—Airbnb jumped nearly 113%, while DoorDash gained 86%—made it too difficult for Roblox to settle on the right price for its shares. The listing is now delayed until early 2021. Snowflake IPO’d in September & It’s Already Bigger than IBM

If you don’t have kids, you may not be totally familiar with Roblox. It’s this free, Fortnite-like gaming platform popularized by the youths, where users create Lego-like avatars that can be plugged into all the available games you spawn into. They were founded back in 2004 and monetized by shrewdly rolling out their own digital currency called “Robux” that they sell to users to spend on virtual goods from the Avatar Shop. e.g. character skins, accessories, bundles, and animation packs.

Roblox said that for the first three quarters of 2020, 34% of its revenue came through Robux sales via Apple devices and 18% from the Google Play store. Roblox’s largest shareholder is Altos Ventures with a 21% stake. Co-founder and CEO David Baszucki owns 12%. Meritech Capital controls 10%, Index Ventures owns 9.9% and Tiger Global owns 7.3%.

The company filed to go public in November, but has yet to set terms for the offering. Roblox raised $150 million in February in a round that valued the company at $4 billion. Its IPO was expected to generate strong demand. Roblox Files for $1B IPO

Their daily active users rose 82% to 31.1 million in the months leading up to September, from 17.1 million in year-ago period. Revenue surged 68% to $588.7 million in the same timespan.

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