Roblox Corporation owners of the popular video game Roblox debuted on the NYSE on Wednesday evening gaining more than 60% right out of the blocks.
The video game owners entered the NYSE by direct listing avoiding the initial public offer route often used by most newly listed companies to list on a stock exchange.
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Roblox was listed at a reference price of $45 per share but opened trading at $64.5 per share and was trading above $70 per share at the time of posting this article. The company also released impressive results, reporting a revenue $923.9 million and a loss of $257.7 million in 2020. This compares to revenue of $508.4 million and loss of $71 million in 2019, and revenue of $325 million and a loss of $88.1 million in 2018.
Investors in the US ascribe significant valuations to companies with rapid revenue growth and worry less about losses. They believe the companies will eventually post massive profits as it garners market share. Roblox also has a free cash flow of $411.2 million in 2020, up from $14.9 million in 2019.
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About Robox
Roblox game was founded by Dave Baszucki as a gaming platform where kids could learn to code. It is hugely popular amongst kids all over the world, including Nigeria, and has grown to over 150 million monthly global active users.
- As a gaming platform for coders, it pays developers hundreds of millions annually to create games for millions of kids to play.
- Roblox is also one of the most searched games on YouTube even gaining more than Minecraft, and just next to Fortnite.
- On Roblox, kids can create their own games and also pay for things like avatars, passes, virtual dresses through their currency Robux.
- The game soared in popularity during the Covid-19 lockdowns as more kids stayed at home.
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