Your son, his friends and his girlfriend(s) are playing Roblox.
Even though you may have lost track of Roblox, there is a good chance that your children haven’t. Roblox’s Daily Active Users are showing steady growth since the good old COVID days, and so is its average revenue per user.

Interested in how it translates in terms of valuation?

Roblox is overvalued

Roblox's current price is above even our highest estimate. To justify it, they'd need a 82.5% profit margin, despite their best ever being… -23%. So yeah, a bit of a stretch. To put this in perspective, companies like Meta make a 40% net margin.

But the hype will probably last for a while, have a look why below.

But it has an awesome growth

Roblox's plateau of Daily Active Users (DAU) could be reached in August 2032 with 180 M users. In the best case scenario, the growth can even further continue.

So yeah, the hype surrounding Roblox's valuation is real but will not stop any time soon.

Revenue per user is stagnating

Roblox's revenue per user has been stagnating since 2022. Given their very young customerbase, it is difficult to imagine this trend changing any time soon.

The product is still improving

Roblox still heavily invests in its product, with 36% of its revenue reinvested in R&D. This could hint at a sustained growth and an improved revenue per user.