IPO Bucks for Roblox

With news of Roblox (RBLX) announcing plans to IPO, we looked at spending on the video game platform.

While the company states three quarters of American children ages 9 to 12 are on the free-to-play platform, we focused specifically on spending— players exchange real dollars for the platform’s currency Robux, used to buy virtual accessories, pets, and in-game environments created by a host of developers.

In the quarters preceding the outbreak of COVID-19 we see spending growth roughly flat, around sixfold when indexed to Q1’15. Following lockdowns and increased time at home, sales leapt twentyfold in Q2’20 and Q3’20. Unique Gamers* similarly spiked to around 150% in Q2 and Q3 compared to 2019. 

Undoubtedly a beneficiary of COVID-driven housebound behavior, it will be interesting to see whether the games community keeps this influx of players entertained and spending in the long term.

*Refers to gamers who spent money on the platform.