Roblox wants to rule the metaverse
By Paul R. La Monica, CNN Business
If you’ve ever tried to separate a Roblox-playing tween from their smartphone, you know how addictive the game can be. Roblox, the gaming platform that’s super popular with young kids (and investors), released financial results Monday afternoon.
The company’s second-quarter revenue missed forecasts. The stock was flat after hours following a 5% drop in regular trading.
Still, shares of Roblox are up about 80% from their debut price when they began trading in March through a direct listing. The stock is up nearly 20% from its first-day closing price.
Roblox now has a market value of about $45 billion, making it worth more than traditional video game giant Electronic Arts.
As of May, the company said it had 43 million daily active users, up 28% from a year ago. Roblox said Monday that this figure rose to 43.2 million as of the end of the second quarter.
The more Roblox users there are, the more money the company generates from the sale of its virtual currency Robux, which can be used for in-game purchases. Roblox takes a cut of the Robux revenue and shares the rest with game developers.
The company has taken the gaming world by storm in large part because it isn’t just one game, per se. Rather, it’s a platform with millions of user-generated games. It’s also a leader in the so-called metaverse, the idea that more and more people will interact with virtual content in an online world.
Facebook, Microsoft and Fortnite maker Epic Games all have ambitious metaverse plans.
And it looks like Roblox has even bigger ambitions. The company announced Monday that it will buy a startup called Guilded, which develops gaming community-building tools like voice and video chat as well as calendar and scheduling applications.
“The Guilded team has a clear passion for empowering communities,” said David Baszucki, CEO of Roblox in a press release. “They have a great team and technology, and we’re very excited to help them continue on their path.”
Popular musicians have also latched on to reaching younger fans by performing concerts in the Roblox platform.
Lil Nas X of “Old Town Road” fame did a Roblox show in December that generated more than 30 million views. YouTuber/rapper KSI performed a series of shows this past weekend.
The company is capturing the attention of mainstream media and toy companies too: In June Netflix launched a game on Roblox that lets players visit a virtual version of the 80s-era Starcourt Mall from “Stranger Things,” which was a key locale during the show’s third season.
Canadian toy and entertainment firm Spin Master announced last week that it plans to premiere a new episode of its popular “Bakugan” show on Roblox — a week before it will stream on Netflix.
“By merging our collective audiences, we are able to offer the Roblox community as well as Bakugan fans new and unique ways to connect and experience entertainment together within the Roblox metaverse,” said Christina Wootton, vice president of brand partnerships at Roblox, in a press release.
The-CNN-Wire
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