Is Roblox losing money? (2024)

Is Roblox losing money?

In the first quarter of 2022, gaming company Roblox Corporation reported a consolidated net loss of over 162 million U.S. dollars. This figure is an improvement from the corresponding quarter of the previous year, when Roblox generated a net loss of over 136 million U.S. dollars.

And yet, as remarkable a job as Roblox has done cultivating this community, the company remains well short of profitability. In 2021, it reported a loss of about $490 million on $1.92 billion revenue.

N) said it expects net losses to continue for the "foreseeable future", after higher expenses and a slowdown in demand from pandemic-era highs dragged bookings in the first quarter. That also pushed the company's quarterly loss below estimates, sending its shares down 3.8% in extended trading.

For one thing, the main reason Roblox lost money in the quarter is that it spent heavily in paying its game developer partners well, in spending on research and development, and in improving "infrastructure and trust and safety" -- all items I view as crucial investments for a company that aspires to be a growth stock.

Roblox has never been profitable, but the company's Q4 net loss widened by a wide margin. In the quarter, revenue grew 83% YOY to $569 million, but the net loss grew 144% to $143 million. The company's free cash flow also declined compared to the year-ago period, from almost $119 million to $77 million in Q4 2021.

According to Backlinko, Roblox had amassed around 190 million average monthly players in 2021, with a peak of 202 million users in April. In addition, these numbers also reveal that Roblox has been steadily growing in popularity since 2016. For context, the platform had a peak of 25 million monthly users back in 2016.

A rebound in RBLX's shares is likely to happen in 2H 2022, when the company's bookings growth accelerate again benefiting from an easier base for comparison. But a recovery to the $70 price level is quite challenging considering the implied valuation multiples and the weakness in Roblox's US & Canada region.

Roblox has received a consensus rating of Hold. The company's average rating score is 2.31, and is based on 7 buy ratings, 7 hold ratings, and 2 sell ratings.

Take the market with you

Roblox reported having 32.6 million daily active users at the end of 2020, up 85% from the year-ago period. Revenue jumped 82% in the year to $924 million. It had a net loss of $253 million in 2020, vs. a $71 million loss in the prior year, according to the Roblox IPO filing.

The average estimated annual salary, including base and bonus, at ROBLOX is $134,365, or $64 per hour, while the estimated median salary is $141,529, or $68 per hour. At ROBLOX, the highest paid job is a Director of Sales at $218,414 annually and the lowest is a CS Rep at $53,563 annually.

How much does Roblox make in a day?

Thanks to Apple's 30% take on each in-app purchase made on the platform, "Roblox" generates around $900,000 per day for the company.

Roblox's slowdown should be temporary

Roblox finished 2021 with $1.9 billion in revenue, a terrific 108% jump over the prior year. The company also reported a 40% year-over-year increase in daily active users (DAUs) to 45.5 million.

Overall revenue is still up a whopping 60 to 63% year over year. Take that with a grain of salt. Bookings and revenue are going to correlate over time. There's going to be periods where they're widely divergent, as right now.

✔️ The Roblox website is now up & available, with a few minor disruptions.

– Roblox is officially more popular than Fortnite because it's not just one game, but a collection of over 50 million games, all created by its community of players. It is a virtual world where players can play games created by other players.

You can check how many minutes or hours you've played in the game by clicking on the "My Statistics" GUI found in the bottom right corner.

Today at 3pm, internet search giant Google announced its aquistion of startup game studio Roblox for a purchase price of 380 million dollars. Roblox is an online building game for kids.

Roblox's last monthly sales report showed that the platform is losing users and seeing weaker engagement following a demand surge in earlier phases of the pandemic. Spending is falling, too, as consumers prioritize other budget categories, like travel.

Undervalued Stocks: Roblox

Even after the downgrade, Goldman has assigned a price target of $50 for the stock. This would imply an upside potential of 35%. Clearly, the stock is undervalued even after discounting the slowdown concerns. Beyond the near-term concerns, Roblox is possibly the best metaverse play.

What are the predictions for Roblox stock?

The 16 analysts offering 12-month price forecasts for Roblox Corp have a median target of 34.00, with a high estimate of 57.00 and a low estimate of 21.00. The median estimate represents a -18.91% decrease from the last price of 41.93.

Roblox Corporation is an American video game developer based in San Mateo, California. Founded in 2004 by David Baszucki and Erik Cassel, the company is the developer of Roblox, which was released in 2006.

Roblox in February warned investors to brace for decelerating operating trends as the world transitions out of earlier phases of the COVID-19 pandemic. That's a big reason why the stock has been lumped in with other formerly high-growth companies like Netflix that saw disproportionate sales gains in 2020 and 2021.

Roblox earns about 48.9% of Robux revenue as profit. The other 51% is divided between the game developer, the App Store, and payment processing fees. Roblox makes up 35% of its revenue via Robux purchases from Apple's App Store and 19% of its revenue via purchases from the Google Play store.

How To Actually Get Free Robux On Roblox 2022 - YouTube

Most of Baszucki's pay comes from long-term incentives tied to stock performance, and the Roblox founder won't receive any other direct payments through 2027, but compared with his 2020 pay package of $6.8 million, 2021 was definitely a career year.

Advertisem*nts are paid for in Robux by the developer to promote their game. By paying in Robux, this means that Apple will never see any profits from advertising on Roblox because they're entirely paid for on a virtual currency that's already been exchanged, and now, transacted against.

Roblox has overtaken Minecraft with an incredible 100 million monthly active users. Back in March, Microsoft said Minecraft had 91 million monthly players. Roblox is one of the biggest video games in the world, although it goes relatively undiscussed in the games media.

What age plays Roblox the most?

Age distribution of Roblox's user base

Roblox is dominated by young users. 67% of users are under the age of 16. Only 14% of Roblox's users are over 25 years old.

Available Across Multiple Platforms. Roblox captures a diverse audience by making itself available on practically everything. Roblox offers multiple ways to get online and play, even if you don't have a PC. It is available to play on tablets, smartphones, and even the XBOX.

Roblox sheds more than $1.5 billion in market cap following outage that could have cost millions.

The outage also caused Roblox to lose more than $1.5 billion in market cap on November 1, 2021, a period in which would take in at least $15 million in revenue. Refund sent to the creator for their advertisem*nt after the initial outage.

✔️ The Roblox website is now up & available, with a few minor disruptions.

The company said earlier that the cause was an “internal system issue.” “A core system in our infrastructure became overwhelmed, prompted by a subtle bug in our backend service communications while under heavy load,” David Baszucki, Roblox's founder and CEO explained in a post after operations were restored.