Site icon

Roblox announces confidential submission of draft registration statement for proposed public offering

Roblox is now planning to go public and has already submitted a draft registration statement on a confidential basis to the US Securities and Exchange Commission (the “SEC”) for a proposed public offering of its common stock.

The number of shares of Class A common stock to be sold and the price range for the proposed offering have not yet been determined. Roblox intends to commence the public offering following completion of the SEC review process, subject to market and other conditions.

According to Reuters US, demand for video games has surged as consumers seek home entertainment while living under lockdown measures to curb the spread of the novel coronavirus. US consumer spending on video gaming hit a record $11.6 billion in the second quarter, up 30 per cent on the year-ago period, according to research firm NPD Group.

Roblox has had a great 2020 with some of its popular games hitting spectacular records. For instance, Adopt Me! hit a peak of 1.615 million concurrent users and 10 billion visits in H1 2020. Piggy had over 5,000 plays by the end of July 2020 following its January 2020 launch. Roblox developers expect to earn $250 million on the hub in 2020, up by 127 per cent from 2019’s $110 million. Its monthly active users increased from 115 million in February to 164 million in July according to RTrack.

Moreover, based on a report from Sensor Tower, player spending on Roblox increased 28 per cent month-over-month in March 2020 and 34 per cent in April 2020. In May, the game’s revenue hit a peak of $102.9 million.

 

Exit mobile version