Roblox With Gigantic Losses; Figures are Shocking
We have learned the latest financial results of Roblox - a platform attracting millions of players around the world. The company's latest report is a source of many interesting and often surprising information.
Roblox faces an interesting - and, from the perspective of developers, rather difficult - situation. The financial report for 2022 turned out to be the source of some surprising numbers and conclusions.
The numbers speak for themselves
Roblox Corporation's financial report for 2022 indicates that revenue generated at the time amounted to $2.2 billion (a result 16% better than in 2021). However, this did not save the company from losses - last year closed at a monstrous $934 million lossess, almost twice as much as in 2021 (-$504 million). It is worth noting, however, the 5% increase in the value of contracts with developers operating within Roblox - in 2022 they amounted to $2.9 billion.
What is behind these results?
Interestingly, the results do not go hand in hand with the game's popularity, as it lacks nothing in this respect - in the fourth quarter of 2022, the title attracted more than 58 million players, an increase of 19% compared to the end of 2021. So where to look for reasons for the company's current situation? Roblox Corporation gives several arguments - it points out, for example greater investment and expansion of operations.
It's also worth remembering that Roblox Corporation makes its money largely from contracts signed with the creators of in-game content. The company provides them with the tools to create their own in-game creations and enables them to profit from their sales, while charging them a fee. The company explains that the extension of the payment lead time in 2022 is one of the main reasons it recorded such a large loss.
Uncertain future
Roblox Corporation expects that due to delays in fulfilling contracts with developers it will continue to report a net loss in its reports. At the same time, in 2023 the company intends to focus more strongly on internal advertising, which is expected to plug the budget holes, at least to some extent.
