Meanwhile, in its filings it admitted that it might not be able to continue the growth rates that it is witnessing this year in the future. Through its IPO, Roblox intends to raise $1 billion. “We have experienced rapid growth in the three months ended June 30, 2020, September 30, 2020 and for a portion of the three months ended March 31, 2020, due in part to the COVID-19 pandemic given our users have been online more as a result of global COVID-19 shelter-in-place policies,” said the company in its release. However, its losses also more than doubled to $48 million over the period. In the third quarter, Roblox reported revenues of $242.2 million which were 91% higher than the corresponding quarter. The hours engaged also surged to 8.7 billion. The company’s daily active users more than doubled to 36.2 million in the third quarter. The company’s growth has increased multi-fold this year as pandemic has led to higher demand for gaming companies. Roblox is the latest company to file for its IPO. However, investors have ignored such warnings and IPOs of tech and electric vehicle companies have received a good response. Many see the record number of listing as a reminder of the soaring valuations. Even Berkshire Hathaway, whose chairman Warren Buffett has stayed away from tech stocks and has had very pessimistic view of IPOs, co-invested in the IPO of cloud company Snowflake. Most IPOs have done well this year and the Renaissance IPO is outperforming the S&P 500. Data analytics company Palantir took the direct listing route shunning the traditional listing mechanism. 2020 has been the year of the IPO boomĪlong with the traditional listings, many companies including Fisker, Nikola, and Lordstown have listed through the SPAC (special purpose acquisition company) route. The IPO boom is not done yet and has in fact gained traction after the election uncertainty ended. The total number of IPOs this year is already 396 this year, only one short of what we had in 2000. Online gaming platform Roblox, that’s quite popular among children and preteens, filed its IPO yesterday. 2020 is turning out to be among the best years for US IPOs.
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