Roblox (RBLX) wants to be more than a Game

July 30, 2021

Roblox (RBLX) wants to be more than a Game

At LikeFolio, we've been Bullish on Roblox from the very start. We published an "Early Reopening Outliers" MegaTrends report in May ahead of Roblox's first public Earnings release: Bullish. The company knocked it out of the park and shares surged by +20%. Then, we doubled down, sending a follow-up Bullish Bonus Report ~a week later. Shares continued +30% higher. Now, an opportunity is presenting. Shares are trading lower, following a report of a -1% decline in Monthly Active Users in May. To be fair, user count remained +28% YoY. You can see some tempering in the overall Mention count in LikeFolio data.

But look at the far right of the chart. What do you see? The company is re-gaining buzz. Mentions are +2% higher YoY...which is an impressive feat considering the environment last Summer. Also consider: Roblox Gameplay mentions are also gaining steam: +6% YoY, +139% vs. 2019.

What is driving this engagement? Roblox's unique model. Roblox is very different vs. a traditional "game". Instead of a single, linear experience, Roblox is keyed into creating what it considers the Metaverse...a self-sustaining co-experience platform.

Developers can actually make money creating games within the system that users can play, together. And this Universe is expanding.

Roblox is attracting more than just kids now. RBLX doubled the number of daily active users over the age of 13 on its last report, and increased engagement among this group: +128% YoY.

This growth is where our data shines. Only 49% of RBLX userbase is 13+, so we are showing signs of continued expansion. This is key, because older users have more direct access to funds... For premium games and for in-game transactions via Robux.

At the end of the day, Roblox has vision and consumers have taken a liking to it.

We're keeping a close eye on this name ahead of Q2 Earnings, set for August 17. If buzz continues to grow at this pace, the company has plenty to be optimistic about for a long time.

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