Roblox’s Investment Outweighing Strong Underlying Metrics, Lowering FVE to $75

Roblox operates an online video game platform that lets young gamers create, develop, and monetize games for other players. The firm offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. Unlike a full-priced AAA title, there is no entry cost to try out Roblox or the vast majority of the user-developed games. Thus, to drive booking growth and keep the Roblox model churning along, the new user must purchase and spend Robux, the platform’s tender.