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How Does Roblox Make Money (Business and Revenue Model)

The Roblox business model

How Does Roblox Make Money?
Here’s what you should know:
  • What is Roblox, and how does Roblox work?
  • How does Roblox make money?
  • Sale of Robux (Roblox’s in-game currency)
  • Other Revenue Streams
  • Roblox’s Subsidiaries, Acquisitions, and Exits
  • Roblox’s profit and revenue
  • What is the Roblox business and revenue model?
  • Roblox’s funding and market cap

How does Roblox make money? Here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Roblox business model, their year over year revenue, and how Roblox works.

What is Roblox, and how does Roblox work?

Roblox is an online gaming platform that allows users to create their own games and or play games created by other users.

Launched in 2006 by David Baszucki and Erik Cassel, Roblox began trading on the New York Stock Exchange (NYSE) on March 10, 2021, under the ticker symbol “RBLX”.

Since that time, Roblox has attracted more than 45.5 million daily active users making it one of the most popular online games in recent years.

How Roblox works is: To play Roblox, users must first create an account.

Once an account is created, users can choose from over 40 million games to play or they can create their own game using Roblox Studio.

Some of Roblox’s competitors include Fortnite, Minecraft, Candy Crush, Pokémon GO, and other popular online games.

Roblox App in Apple App Store | Roblox Business Model | How Does Roblox Make Money? | How Does Roblox Work?
Source: Apple App Store | Roblox

How does Roblox make money?

According to page 7 of Roblox’s 2021 Form 10-K, Roblox has more than 45.5 million daily active users; of which, 678,000 are daily paying users.

So how does Roblox make money off of all these users?

Below is a breakdown of how much money Roblox makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how Roblox makes money (in 2022):

Roblox has a revenue model that makes money in two (2) ways – the sale of Robux (Roblox’s in game currency) and other revenue streams (advertising, licensing, and royalties).

#1. Sale of Robux (Roblox’s in-game currency)

Roblox generates the majority of all its money through the sale of Robux on the Roblox platform.

What are Robux? Robux is Roblox’s in-game currency that allows users to purchase and use this currency to buy things like upgrades for a user’s avatar and or buy special abilities in experiences.

In addition to Roblox selling one-time Robux purchases, users can also subscribe to a Robux Premium Membership; which charges the user monthly for discounted Robux. You can see the simplified price breakdown of both below or go here to take a look for yourself.

How much does Robux cost?

  • Robux Pricing: $4.99 to $99.99 depending on the quantity of Robux purchased
  • Robux Premium Membership: $4.99 to $19.99 per month
How much does Robux cost? | Roblox Business Model | How Does Roblox Make Money? | How Does Roblox Work?
Source: Roblox

#2. Other Revenue Streams

The remaining portion of Roblox’s money comes from what they refer to as “other revenue streams.”

Other revenue streams, according to page 81 of Roblox’s 2021 Form 10-K, “include a minimal amount of revenue from advertising, licenses, and royalties. [Roblox] recognizes revenue based on the performance obligations of the underlying agreements, in an amount that reflects the consideration [Roblox] expects to be entitled to.”

Note: Roblox’s other revenue streams consist of advertising, licencing, and royalties.

Roblox’s Subsidiaries, Acquisitions, and Exits

To date, the ROBLOX Corporation has made a total of 6 acquisitions.

Acquisitions business model | Roblox Business Model | How Does Roblox Make Money? | How Does Roblox Work?
Source: Crunchbase | Roblox

Roblox’s profit and revenue

In 2021, Roblox reported $1.92 billion in revenue.

Note: Because the ROBLOX Corporation is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Roblox’s publicly released financial reports, including annual reports, through Roblox’s investor section on their website.

What is the Roblox business and revenue model?

Roblox makes money through a few revenue models that they combine within their company, they are:

  • Gaming as a Service (GaaS) business model
  • Subscription business model
  • Advertising business model
  • Licensing business model
  • Royalty business model
  • Mergers & acquisitions (M&A) business model

Roblox’s funding and market cap

According to Roblox’s Crunchbase profile, Roblox has raised $856.7 million over 10 rounds and has a market cap of $18.14 billion as of May 2022.