Massive tween game Roblox files for IPO

Popular tween gaming platform Roblox filed to go public on Thursday. The company declined an interview, citing a quiet period.

The company reported revenue of $589 million and an operating cash flow of $345 million for the nine months ending in September. It is not yet profitable, reporting a net loss of $203.2 million in the nine months ending in September, according to the IPO filing.

If you’ve never heard of Roblox, that may be because you’re not a tween. The entire platform is made up of user-generated games, many of them created by children and teens who have made millions of dollars through the platform. About 75% of American children ages 9 through 12 play Roblox regularly with friends, according to the company.

During the coronavirus pandemic, kids have flocked to Roblox to throw virtual birthday parties and other in-game events that were no longer safe to hold in-person. In July, gamers spent 3 billion hours playing Roblox, twice as much time as in February.

Roblox is also big business. In October, it reached $2 billion in lifetime revenue just from mobile players.

This story is developing.