Roblox executives have delayed its IPO to 2021 to seek a higher price, after last week's Airbnb and DoorDash IPOs soared

Roblox executives have delayed its IPO to 2021 to seek a higher price, after last week's Airbnb and DoorDash IPOs soared
Alice Wilkinson adds a face mask to her character on the gaming platform Roblox at her home in Manchester, UK.Phil Noble/Reuters
  • Games startup Roblox delayed its IPO until 2021, with the CEO reportedly telling staff in a Friday memo that executives were working to boost its initial listing price.
  • Roblox executives reportedly saw first-day gains from Airbnb and DoorDash as signs that it could improve its eventual listing price by holding off until 2021.
  • "We've seen companies take innovative approaches to creating a more market-based relationship between investors and companies," CEO David Baszucki said in a Friday memo shared with Reuters.

Games startup Roblox delayed its IPO until 2021, with the CEO reportedly telling staff in a Friday memo that executives were working to boost its initial listing price.

"We've seen companies take innovative approaches to creating a more market-based relationship between investors and companies," CEO David Baszucki said in the memo, which was shared with Reuters.

Said Baszucki: "We've decided to take this opportunity to work with our advisors to see how we can make such improvements."
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Roblox executives have delayed its IPO to 2021 to seek a higher price, after last week's Airbnb and DoorDash IPOs soared
Aïda Amer/Axios
In November, the company filed with the Securities and Exchange Commission for a future listing, saying it expected to raise about $1 billion. Wall Street had expected the company to go public by the end of the year.

But after watching last week's DoorDash and Airbnb offerings surge in first-day trading, Roblox executives decided to rethink their timeline, Reuters reported. DoorDash stock almost doubled on its first day, while Airbnb just about tripled from its offering range in a day.

By waiting until next year, it may be possible for Roblox executives to work with underwriters and investors to set a higher listing price, bringing in more cash for Roblox on its eventual IPO day.
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Roblox stock would be "really, really interesting," wrote Ross Gerber, an investment advisor, on Twitter, before the company delayed.

A potential boost in Roblox's listing price could help the gaming company reverse its slide away from profitability. The company logged a daily average of 31 million users in the first nine months of the year. Those users brought in about $589 million in revenue, but the company still lost $203.2 million in the same period, according to its S-1 filing with the SEC. And its loss-making has only accelerated in recent years.
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The $203.2 million loss in those nine months was more than it lost in the previous two years combined, with a $97.2 million loss in 2018 and a $86 million in 2019, according to its filing.

If users leave the platform, it may never reach profitability, it said.

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