Roblox is a California-based online games company founded in 2004 that allows users to play games created by other users. It has 164 million Monthly Active Users (MAU).
Roblox is following in the footsteps of companies such as Palantir “PLTR”, Asana “ASAN” and has decided to go public via the unconventional Direct Listing valuing the company at around $29 billion.
It was valued at $4 billion in a private $150 million round in February 2020, confirming the recent vast discrepancies between the valuation of growth companies in late private rounds and their debuts in the public markets.
Since the beginning of the pandemic, it has experienced exponential growth doubling users as people. However, it has yet been unable to become profitable, reporting a loss of $256 million on revenue of $924 million.
It is now capitalizing on the "hot" IPO market and investors' appetite to go public.