Some key figures in Roblox S-1

https://www.sec.gov/Archives/edgar/data/1315098/000119312520298230/d87104ds1.htm

Roblox is metaverse game that is widely popular among young people. You can create games among games and play it with your friends. You can also be a develop and create games for Roblox and make money from the virtual economy.

Here are some key figures from their S-1:

• There are over 18m experiences on Roblox.
• Daily Active Users is around 31m for the first 9 months of 2020, which is around 82% increase from a year ago.
• Revenue growth is around 70% yoy for the first 9 months of 2020.
• Average revenue per daily active user (ARPDAU) is around 5 cents. (5 cents is actually pretty low for games but consider they have 31m daily active users the number add up quickly)
• Bookings grew to around 1 billion for the first 9 months of 2020. (Phew... that is a lot of bookings.)
• Company is incorporated in 2004 (game release is around 2006. It's impression a game still exist and grows in user base in almost 20 years.)
• Free Cash Flow grew to $292m for the first 9 months of 2020, which is up from a $6m a year ago. (It's up a mind-boggling 4770%)
• Users spend an average of 2.6 hours per daily active user each day. Over the same period, our users explored an average of over 20 different experiences on the Roblox Platform per month.
• They have over 960,000 content creators for the Roblox platform. Some 250 of those developers make over 100,000 or more on the platform.
• Their losses are 200m for the first 9 months in 2020.

So they lose a lot of money. But at the same time they also grow a lot and spend the money to build a well established community that has people make living there and the community can sustain and grow itself now. And it seems this would continue to be true for the forseeable future.

Now let's take a deeper look into the financial statements in the S-1.

So they pay a lot for their cogs, developer exchanges, r&d, infrastructure... etc. The very interesting thing here is they don't spend a lot of money (comparably in terms of revenue %) on their marketing. One of the explaination of this is that the game is widely popular and can spread by word of mouth so that you don't need to go about advertise this game. This could also mean in the future if they decide to do that maybe their revenue growth or booking could skyrocket through the roof. Or maybe they're just pretty lazy at doing marketing. :$

So their Average Bookings per DAU went up 50% in year 2020. If this is an ongoing trend then this could mean something. But at the same time it could also be an one off event that once people are done spending their Covid checks this number could go back to normal. It would take a few more more quarters to see where this number can end up in the long run.

Daily active users also go up a lot in 2020. Could be an one-off Covid thing too.

Some bookings numbers:

So as expected most of the revenue are based in North America. But also there seem to be some growth in Europe and rest of the world and the percentages are getting a bit higher in Europe.

Overall this looks like a very interesting company to invest in. With a company this popular and interesting I'd say having a 2-3% exposure to it would make a lot of sense at any price levels. But it's already a company that's richly valued. They're currently traded at 45 times their 2020 revenue, which is VERY expensive. Also according to them that this level of growth is largely because of Covid and is not sustainable. So you might never see a revenue growth of 70% again in the future.

So, good luck with your investing. Do your own dd and invest carefully.

p.s: Lock up period for Roblox is 180 days.

long $rblx