The strong management team suggests that the company will not miss expectations. For example, Roblox still has to increase its growth in North America, Europe and the United Kingdom. Chief Financial Officer Michael Guthrie said on the conference call that the company is nowhere near “close to being done” on growing geographically and by age demographic.ĭespite trading at a price-to-sales of around 44 times, RBLX shares are growth investments whose revenue will keep growing. Its user base benefits from the age demographic. Roblox’s IPO gives the company the capital it needs to grow the business. As long as the average bookings per DAU are in the double digits (at $15.48 in Q1), investors should stay content. This audience will offer strong recurring revenue over the next several quarters. For example, the U13 (under 13) category is growing very well.

The company needs to foster its ecosystem, capturing growth globally and attracting users across all major age groups. In the gaming space, user growth matters more than profits in the near term.

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