The metaverse is an idea that describes the shared 3D spaces in a virtual universe. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse.
Roblox was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash. Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to meet to play, learn, and build friendships.
Whether a person likes to go scuba diving, adopt a pet, become a superhero, or explore ancient Rome, one can explore it on Roblox. Here, about 8 million active creators are developing over 20 million experiences where more than 37 million young people come each day for an average of two hours per day. Roblox has become a virtual economy that people can access anywhere on almost any device.
Robux, the digital currency, can be used to purchase items such as pets and cars. Earned Robux can be reinvested in the virtual worlds or can be exchanged for fiat currency. In 2020, over 1.2 million creators earned Robux and more than the equivalent of UD 320 million.
Roblox is at the intersection of gaming, communicating with friends, entertainment, and commerce. The firm is offering the tools to create; Roblox Studio is the platform where developers build, publish, and operate 3D experiences.
Recently, Roblox has become a publicly-traded company. Among the questions we are thinking about are; whether international expansion can attract hundreds of millions of users; how the age range can be expanded; how the growth of use cases such as experiencing concerts together, experiencing physics, collaborating, and monetizing the virtual economy will affect the value of the network.
The growth in daily users, hours engaged, bookings, and achieving more operating leverage, hint at a long runway of healthy profitable growth ahead. The long-awaited tipping point in the adoption of VR devices seems to be getting closer as well and might provide a further boost to engagement. All in all, Roblox is a business that we will be following closely.