On the surface, Roblox is just another video game. Dig deeper though. It’s so much more.
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The video gaming business can be brutal, with the constant threat of a newer or better game displacing demand for an existing hit title. So when one particular game remains popular year after year, it pays to take notice.
Roblox (NYSE: RBLX) is that game. OK, it’s not a game as much as it is a platform where amateur game designers can create their own online game, and then allow other gamers to pay those designers for access to their virtual world.
Last quarter alone, the company shelled out $316 million worth of fees to these game developers — about 29% of total revenue of just under $1.1 billion, which was up 21% year over year. An average of 111.8 million different people played at least one Roblox game every day for the three-month stretch in question as well, up 41%.
That’s not the impressive part of the bullish thesis here, though. What’s truly impressive is how long this company’s been able to maintain this sort of growth in an industry where demand for a particular game is relatively short-lived. See, Roblox was launched in 2006. It’s pretty much grown every year since then, with no end in sight.
RBLX Revenue (TTM) data by YCharts
The key to this growth is the nature of the platform itself; players always have a new experience, because developers are…
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