Kiddie (or young adult) gaming platform Roblox delayed its planned IPO in December due to uncertainty over pricing after AirBNB and DoorDash rocketed beyond expectations out of the gate.
In early January, Roblox announced it had decided on a direct listing instead of an IPO. It also raised a Series H round of venture funding, for $520 million at a $29.5 billion valuation (its last prior valuation had been at $4 billion).
Now, Roblox has had to slow the process again. The SEC seeks changes its revenue recognition policy.
“Players use Robux in the game to buy a mix of durable goods which last for a period of time and consumable goods which are used immediately. Roblox had looked to treat all the revenue the same and amortize it over the duration of its paying user accounts, which is around two years. The SEC wants Roblox to be more specific and recognize revenue on consumable products as they are consumed, while the durable services will still be recognized over the life of the Roblox user.” — Joshua Franklin, Reuters
Actually the way Roblox was doing it was a bit more conservative in terms of the timing of revenue recognition, management claim. The change will actually increase stated revenue.
First Round Capital was an early investor in Roblox and owns 7%.