Roblox is enjoying outstanding revenue growth right now, which analysts expect to continue. If we conservatively assume that Roblox clocks a 30% annual revenue growth rate for the next nine years, then its revenue at the end of 2030 could increase to $20 billion. The stock is currently trading at a price-to-sales ratio of 13. 2.
Analysts expect Roblox's revenue to rise another 186% to $2.65 billion for the full year. But for fiscal 2022, they expect its revenue to rise just 19% to $3.14 billion as the pandemic ends and it faces tough year-over-year comparisons. Roblox's net losses are still widening as its cloud infrastructure costs rise.
Between the first quarters of 2018 and 2021, Roblox's DAUs more than quadrupled from 10.3 million to 42.1 million, its total hours engaged surged from 2.1 billion to 9.7 billion, and its average bookings per DAU jumped from $11.62 to $15.48. Roblox's revenue rose 56% in 2019, soared 82% in 2020, and analysts expect 167% growth this year.
The gaming market will continue to grow and the strongest growth will be seen in the segment of players 35 – or even 40 years – and up. Paul Sage, Creative Director, Borderlands 3: [By 2030] the 30-40 year old gamers will have grown up in the 2000s-2010s. Minecraft, Pokémon, etcetera are nostalgic touchstones for this generation.
For Roblox to become a $1 trillion company by 2030, the stock would need to rise about 20 times. No pure-play video game company has crossed the $1 trillion mark yet. Activision Blizzard and Electronic Arts, two of the world's largest video game publishers, are currently worth about $70 billion and $40 billion, respectively.
Roblox generated just $933 million in revenues in 2020, so it would need to generate a compound annual growth rate (CAGR) of nearly 50% to hit $50 billion by 2030. If Roblox's valuations cool off, as they'll likely do over the years, it will need to generate an ever higher CAGR to become a $1 trillion company.
Roblox is a platform that enables younger users, many of whom don't have any coding experience, to build simple block-based games and share them with other players. Unity is an advanced game development engine that powers over half of the world's mobile, PC, and console games.
Roblox encourages users to monetize their games with an in-app currency called Robux within its walled garden. Unity offers developers more flexible tools for integrating in-app ads, in-app purchases, and other features into their games.
Unity, which indirectly competes against Roblox in the game engine and development space, is worth roughly $30 billion.
Massachusetts standoff reveals growing extremist threat. Only a handful of tech companies have ever become $1 trillion companies. Apple and Amazon crossed that milestone in 2018, Microsoft followed suit in 2019, and Facebook joined the club earlier this year.
But next year, they expect its revenue to rise just 26% after the pandemic ends and more students return to school. The bears will point out Roblox isn't profitable, and it probably can't achieve profitability without reducing its exchange rate between U.S. dollars and Robux for developers.
For Roblox to become a $1 trillion company by 2030, the stock would need to rise about 20 times. No pure-play video game company has crossed the $1 trillion mark yet. Activision Blizzard and Electronic Arts, two of the world's largest video game publishers, are currently worth about $70 billion and $40 billion, respectively.
Roblox generated just $933 million in revenues in 2020, so it would need to generate a compound annual growth rate (CAGR) of nearly 50% to hit $50 billion by 2030. If Roblox's valuations cool off, as they'll likely do over the years, it will need to generate an ever higher CAGR to become a $1 trillion company.
Roblox is a platform that enables younger users, many of whom don't have any coding experience, to build simple block-based games and share them with other players. Unity is an advanced game development engine that powers over half of the world's mobile, PC, and console games.
Roblox encourages users to monetize their games with an in-app currency called Robux within its walled garden. Unity offers developers more flexible tools for integrating in-app ads, in-app purchases, and other features into their games.
Follow him on Twitter for more updates! Only a handful of tech companies have ever become $1 trillion companies. Apple and Amazon crossed that milestone in 2018, Microsoft followed suit in 2019, and Facebook joined the club earlier this year.
But for fiscal 2022, they expect its revenue to rise just 19% to $3.14 billion as the pandemic ends and it faces tough year-over-year comparisons.
Players buy Robux to pay creators, who can then covert the currency back to U.S. dollars at a set exchange rate. This self-sufficient cycle differentiates Roblox from professional game development engines like Unity Software, and shares more qualities with Microsoft 's Minecraft.
A self-sufficient gaming platform for tweens. Roblox lets people create video games with a simple block-based system. The simplicity of its platform, which doesn't require any coding experience, drives its growth among tween users. More than half of its daily active users (DAUs) are currently under the age of 13.
Roblox's creators can share their games with other users, promote them on streaming platforms like Amazon 's Twitch, and monetize them with in-game features or cosmetic upgrades for avatars. Roblox enables these transactions with an in-game currency called Robux.
Wall Street expects Roblox to turn profitable this year as it gradually narrows its losses, then grow its earnings 3% in fiscal 2022. But that outlook could still be too optimistic, since it could be tough for Roblox to reduce the exchange rate for its developer exchange fees without alienating developers.