(Reuters)-Roblox Corp has postponed its release plan after the US Securities and Exchange Commission scrutinized how video game platforms perceive financial returns, a note the company sent to employees Thursday. according to.
This delay is a setback for one of the most anticipated US open market debuts in 2021. The company said in a regulatory filing earlier this month that it aims to list its shares on the New York Stock Exchange in February.
Roblox’s valuation surged to $ 29.5 billion in a funding round earlier this month as video games soared during the COVID-19 pandemic. That’s more than seven times the $ 4 billion that the company valued 11 months ago.
According to a note seen by Reuters, the SEC reserves how Roblox recognizes revenue from the sale of the currency Robux on the platform.
Players use Robux in the game to purchase a combination of durable consumer goods that last for a period of time and ready-to-use consumables. Roblox wanted to treat all revenues the same and amortize them over the life of a paid user account (about two years).
The SEC wants Roblox to be more specific, aware of the revenue of products consumed, and durable services to be recognized for the life of Roblox users.
“By adopting that accounting position, our revenue is actually a bit higher, but bookings, DAUs (daily active users), engagement times, and cash flow remain the same,” he said. And CEO David Baszucki wrote in a note to Roblox, a staff member he called “Robloxians.”
“But it will take some time to update this change in the financial statements,” he said.
A Roblox spokesman declined to comment.
This is not the first delay in listing plans. Roblox told employees in December that it had postponed its listing until 2021 as it worked with advisors to improve the process of benefiting employees and investors. The company said it would eventually switch gears and go public through an initial public offering (IPO) rather than a direct listing.
Roblox’s revenue increased 68% to $ 588.7 million in the first nine months of 2020, based on previous metric definitions. The company had a net loss attributable to general shareholders of $ 203.2 million, compared to $ 46.3 million in the previous year.
Roblox, one of the world’s most popular children’s gaming sites and offering a large number of games across mobile devices and game consoles, has per day for nine months from the same period until September 30th. The active user base of Roblox has increased by 82% to 31.1 million. one year ago.
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SEC scrutiny delays Reuters listing on Roblox stock market
https://www.investing.com/news/stock-market-news/exclusive-sec-scrutiny-delays-roblox-stock-market-listing-2402875 SEC scrutiny delays Reuters listing on Roblox stock market