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Roblox
Roblox, the kids’ gaming company going public, released an updated prospectus on Thursday, showing that sales for the first three quarters of 2020 were higher than previously reported, while the net loss was lower.
Revenues in the first nine months of 2020 are up 70% to $ 613.9 million, the company said Thursday. In its earlier prospectus in mid-January, Roblox said revenue over that trajectory was up 68% to $ 588.7 million. The restated net loss for the period was $ 194.5 million, compared to $ 213.3 million previously reported.
The filing comes after Reuters reported in late January that the company had delayed its stock market debut because the SEC was scrutinizing the company’s method of recognizing income through its digital currency. In the story, Reuters quoted a memo sent to employees.
Roblox said it now expects its direct listing to take place in March, rather than February, as indicated in a previous filing. Roblox originally planned to go public via a traditional IPO in December, but it delayed its debut for the first time and changed to a direct listing after Doordash and Airbnb priced their IPOs well below the price of the stock.
Roblox, which has one of the highest grossing apps on Apple and Google devices, makes money by allowing its millions of users to purchase virtual currency called Robux that can be used to dress up their avatar or progress in games.
The change in reporting changed Roblox’s financial data for each of the past 11 quarters, which are covered in the prospectus.
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