Roblox Filing for IPO Amid Uptick in Revenue

Online kids gaming software Roblox, which has seen huge demand recently as a result of the pandemic, is now filing for its initial public offering, according to CNBC. The company hopes to go public before the end of the year.

“We have experienced rapid growth in the three months ended June 30, 2020, September 30, 2020 and for a portion of the three months ended March 31, 2020, due in part to the COVID-19 pandemic given our users have been online more as a result of global COVID-19 shelter-in-place policies,” Roblox officials said in the IPO filing.

Roblox’s revenue climbed 91 percent in the third quarter to around $242.2 million over last year. The company also has more than 31 million daily users who averaged 2.6 hours a day this year playing the game, according to The Verge. The millions of games on Roblox can be played on consoles as well as on Amazon, Apple, and Google devices.

Users can create an avatar that they can use across titles during the free games. Roblox also sells digital currency called Robux that is used to buy virtual items and for the characters. The company’s revenue comes from in-app purchases and from allowing users to rent servers for virtual birthday parties and other events.

Popularity for the online parties has skyrocketed as a result of the pandemic. Roblox said 34 percent of its sales revenue was from selling Robux on Apple devices in the first three quarters of this year. Around 18 percent was from the Google Play store.