Roblox Corporation Dual-Class Stock Structure: What Investors Need to Know

As the gaming industry continues to grow, so does the popularity of Roblox Corporation stock, a global platform that brings millions of people together through shared experiences, recently released its key metrics for December 2022.

According to the numbers, daily active users (DAUs) were 61.5 million, an increase of 18% year-over-year. Additionally, hours engaged were 4.7 billion, up 21% from the previous year. While these numbers are impressive, estimated revenue for the month of December was between $189 million and $199 million, a decline of between 1% to 6% year-over-year.

However, it's not all bad news for Roblox. The company also reported estimated bookings of between $430 million and $439 million, an increase of 17% to 20% year-over-year. Additionally, the estimated average bookings per daily active user (ABPDAU) were between $6.99 and $7.14, which represents a year-over-year change of -1% to +1%.

The company's platform enables users to create and share digital experiences

Something Called Roblox

The company's platform enables users to create and share digital experiences, such as games and interactive content, using its proprietary game engine, Roblox Studio. The platform also includes a virtual currency, Robux, which can be used to purchase in-game items and experiences.

The platform has a strong emphasis on community and social interaction, with users able to connect and communicate with one another through the platform's chat and messaging features.

Investors should be aware that Roblox operates in a highly competitive industry, with other major players such as Epic Games, Unity Technologies, and Tencent. Additionally, the company's revenue is heavily dependent on the success of its virtual currency, Robux, which may be subject to fluctuations in demand and value.

Roblox Corporation stated that it believes that publishing monthly metrics over its first eight quarters as a public company has provided incremental information to investors regarding the seasonality of the business, but that it has decided to align its reporting cadence with its value of taking the long view.

The company also announced that it will discontinue its monthly key metrics releases following the expected release of its March 2023 monthly metrics in April 2023.

Despite the decline in revenue, estimated bookings were between $430 million and $439 million, an increase of 17-20% year-over-year. Additionally, estimated average bookings per daily active user (ABPDAU) were between $6.99 and $7.14, representing a year-over-year change of -1% - +1%.

Insiders metrics will continue to be published on a quarterly basis, aligned with the company's other quarterly disclosures, including its shareholder letter and other quarterly publications.

In terms of financial performance, Roblox has seen strong growth in recent years. In 2020, the company reported a revenue of $923.9 million, an increase of 82% year-over-year. Additionally, the company's net loss for the year was $253.3 million, compared to a net loss of $253.3 million in 2019. However, the company's stock has been highly volatile since going public, with significant fluctuations in value.

Why Give Roblox a Chance?

Investors should also be aware that the company has a dual-class stock structure, with Class A shares held by the public and Class B shares held by the company's founders. This structure gives the founders significant control over the company, including the ability to elect a majority of the board of directors.

Roblox Corporation is a rapidly growing company in the gaming industry with a strong emphasis on community and social interaction. The company has seen strong financial growth in recent years, however, it operates in a highly competitive industry and its revenue is heavily dependent on the success of its virtual currency.

Additionally, the company's dual-class stock structure gives significant control to the founders. Investors should carefully consider these factors before investing in the company.