Online gaming platform Roblox has reached an impressive milestone by crossing $7 billion in user spending throughout its lifetime. The game has also enjoyed a steady rise in downloads, reaching a total of 995 million installs, with a year-over-year growth of 13%.
Based on the iAP-based revenue, AppMagic reports that the Roblox Corporation has faced a revenue downturn since 2021, with a 13% YoY decrease in 2022. In 2023, the decline in revenue slowed, with a modest 2% drop reported in the first eight months of the year. According to the company’s annual report, Roblox’s total revenue in 2022 was equal to $2.2 billion with 16% YoY growth.
Examining the dynamics of Roblox stock prices, a significant decline has been evident since December 2021. According to sources, this downturn was partly linked to the November investor update, which highlighted a monthly decline in revenue and downloads, signalling a deceleration in annual growth.
A good year for Roblox
Following that update, the stock price has experienced variations in response to diverse market events. Notably, there was a 13% uptick in stock price since early September, possibly connected to the various product announcements at the Roblox Developers Conference, as well as the introduction of 28 new features to the Creator Roadmap.
The rollout of Sponsored Items and the enhanced ad audiences feature, enabling creators to promote their 3D user-generated content (UGC) items, probably played a role in fostering a positive outlook among investors. With the company’s Q3 results surpassing expectations, Roblox revealed an increase in revenue attributed to the growing engagement with in-game experiences like Adopt Me! and Murder Mystery 2 during the kids’ summer break, contributing to the sustained growth of the stock price.
As for the company’s revenue distribution across regions, the top three countries were English-speaking ones: the US held the largest market share at 57%, followed by the UK at 7%, and Canada at 4%.
Roblox underwent a significant shift in demographics, broadening its age group to include individuals aged 17 and above which accounted for 40% of the demographics portfolio in 2021, this segment continued to grow in 2022, highlighting the proto-metaverse’s increasing appeal to an older audience as well as the potential for further expansion.
Isa Muhammad is a writer and video game journalist covering many aspects of entertainment media including the film industry. He's steadily writing his way to the sharp end of journalism and enjoys staying informed. If he's not reading, playing video games or catching up on his favourite TV series, then he's probably writing about them.
