The Roblox gaming platform has seen tremendous interest since it went public today and is now valued at around $ 47 billion.
Shares rose 60% at the start of the first day of trading.
According to the GuardianOver the past year, daily user numbers have increased by 85%, monthly users have increased by 75%, and the number of hours of play has more than doubled to more than 30 billion.
The coronavirus made fun of the $ 4 billion the company was valued at after a round of funding earlier last year.
David Baszucki, Co-Founder and General Manager, said on Twitter: “We founded @Roblox in 2004 with a vision to connect the world. As we celebrate our direct listing at @NYSE today, we see the potential that lies ahead: around to create the platform where billions of people come together to learn, work and play. #RobloxIPO ”
The 58-year-old, better known to Roblox users as his avatar Builderman, posted a net worth of $ 2.8 billion following his last round of funding in January.
Based on that funding round, the company received a debut from the NYSE at a reference starting price of $ 45 per share. However, due to popular demand, the share price soared 60% when it opened at $ 72 per share. The company was valued at $ 47 billion and Baszucki’s stake was valued at nearly $ 5 billion.
At the center of the business model is the digital currency Robux, which Roblox sells to players in order to spend them on games and items. Game developers who are typically between 14 and 25 years old receive 70% of Robux spending on their games.
Roblox users bought and spent $ 1.9 billion of its digital currency last year, enough to make it one of the most successful apps on Apple and Google devices.
There are 300 developers making more than $ 100,000 annually on the platform, and more than 1,250 developers have made at least $ 10,000 from virtual sales in the past year.