That number going up is the first of several indicators of the stickiness of the platform.īut their revenue recognition really distorts their GAAP top line. This number is based on what they think is the average span of a user at Roblox. An interesting side note on that: it was 23 months until this quarter. Roblox is one of the few companies where I prefer the non-GAAP metrics, because Roblox has odd revenue recognition, where they recognize about 90% of their revenue across 25 months. As usual, the hardware is holding everything back. It looks like we are past the peak of the Facebook-induced metaverse hype cycle, and now it is a long slog, maybe as much as a decade, until the combination of AR and the metaverse become a reality. Those projects have made the platform more immersive and engaging, solidified their backend cloud, and will bring new ad revenue.īut why I really like Roblox is that they understand that they are on a long road with a lot of potholes in it.It looks like their ballooning R&D and Capex costs are moderating as they wrap up a slew of 2021-2023 projects.Interest remains high from users and developers. There are several indicators that some of the pandemic growth is sticky.This was a very good report from where I stand: The primary challenge remains miniaturization, and that has hit roadblocks in chip fabrication.īut back to the Roblox quarter. Based off the Facebook headsets, and the rumors surrounding the upcoming Apple ( AAPL) headset, we are still pretty far off. It already is.īut until then, it is a grind while we wait for hardware that ties the whole experience together. Fun will be the killer app for the metaverse. While Facebook continues to flounder in their metaverse pivot, a small group of gaming companies, including Roblox, are already building it without an AR/VR headset, step-by-step, disguised as gaming platforms. Facebook ( META) gave unrealistic expectations about how close we are to the metaverse in 2021-2022.The pandemic gaming market gave unrealistic expectations about growth in 2020-2021. Expectations for Roblox ( NYSE: RBLX) have been out of whack for some time now:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |