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Roblox
Roblox, the children’s gaming company that is about to go public, on Thursday released an updated prospectus showing that its revenue for the first three quarters of 2020 was higher than previously reported, while the net loss was lower.
Revenue in the first nine months of 2020 rose 70% to $ 613.9 million, the company said Thursday. In its previous mid-January prospectus, Roblox said revenue rose 68% to $ 588.7 million during the period. Its revised net loss for the period was $ 194.5 million, down from $ 213.3 million as previously reported.
The submission comes after Reuters reported in late January that the company had postponed its stock market debut because the SEC was investigating the method of recognizing revenue through its digital currency. In the story, Reuters cites a memorandum sent to employees.
Roblox said it now expects the direct listing to take place in March rather than in February, as indicated in a previous submission. Roblox originally planned to go public through a traditional exchange in December, but this delayed its debut for the first time and changed to a direct listing after Doordash and Airbnb priced their IPOs well below the shares.
Roblox, which has one of the best-earning apps on Apple and Google devices, earns money by allowing its millions of users to buy virtual currencies called Robux, which can be used to dress up their avatar or in games to progress.
The change in reporting has changed Roblox’s finances for each of the past 11 quarters, that is, those covered in the prospectus.
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