Online gaming and entertainment platform Roblox is postponing its public directory after the U. S. Stock Exchange and Security Commission (SEC) expressed concern, Reuters reported Friday (January 29), which introduced a memorandum for workers. The SEC is investigating how the implementation of the San Francisco area distributes revenue.
Roblox planned to trade shares on the New York Stock Exchange in the fourth quarter of 2020, but in a presentation to the SEC on January 8, the company replaced its plans for a direct directory in February.
An investment circular earlier this month put Roblox’s valuation at $ 29. 5 billion, up from $ four billion almost a year ago. The global pandemic has accelerated the popularity of video games.
The SEC Challenge is how Roblox makes a profit from the sale of his currency, Robux, according to the memorandum noted through Reuters. Players use Robux in-game to purchase durable goods and consumables.
Roblox planned to treat all revenue in the same way, but the SEC needs the company to recognize the benefits of consumables as they are consumed.
“By adopting this accounting position, our revenue will actually be a little higher, while bookings, ADUs (daily active users), engagement hours and money will not change,” founder and executive leader David Baszucki wrote in the note to Roblox staff, according to Reuters.
The company has signed up for a direct listing, following the trail of companies like Slack and Spotify that have entered the broader market. Direct listings carry some risks, but can be a less difficult procedure compared to a classic initial public offering.
Earlier this month, Roblox raised $520 million in funding led through Altimeter Capital and Dragoneer Investment Group. The investment organization in Santa Barbara, California and Warner Music Group, along with several existing investors, also participated in the newest financing.
Roblox is a popular gaming site for children, with a variety of games on mobile devices and consoles. The company reported that its active user base increased by 82% to 31. 1 million in the nine months ending September 30 compared to the same time of year. does, according to Reuters.
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