Roblox Corporation

Roblox Corporation

File:Roblox Logo 2022.svg Logo used since 2022
Company type	Public
Industry	Video games
Founded	2004 (2004)
Founder	David Baszucki, Erik Cassel
Headquarters	San Mateo, California , United States
Key people	David Baszucki (CEO)
Products	Roblox platform
Number of employees	2,400+ (2024)
Website	www.roblox.com

Roblox Corporation () is a United States-based video game developer with its main office located in San Mateo, California. Established in 2004 by David Baszucki and Erik Cassel, the company is known for creating the platform Roblox, which officially launched in 2006. As of 2024, Roblox Corporation employs more than 2,400 individuals.

History

The inception of Roblox Corporation traces back to entrepreneurs David Baszucki and Erik Cassel. Prior to founding Roblox, Baszucki created Knowledge Revolution, a company specializing in educational simulation software, which MSC Software acquired in 1998 for $20 million. After serving in executive positions at MSC, Baszucki departed to start an angel investment firm before partnering with Cassel in 2004 to establish Roblox Corporation. Their initial product was DynaBlocks, which was later rebranded as Roblox and launched to the public in 2006.

Following the passing of Cassel in 2013, the company expanded its workforce from 68 employees to 163 by 2016. In March 2017, Roblox secured $82 million in investment funding led by Meritech Capital Partners and Index Ventures to fuel its growth initiatives. To support international expansion, Roblox International was created in 2018 with Chris Misner appointed as president. Under Misner’s guidance, the platform extended into new markets including China (in partnership with Tencent), Germany, and France by 2019.

In October 2018, Roblox enhanced its mobile network capabilities through the acquisition of PacketZoom, integrating their team and CTO Chetan Ahuja into the company. A Series G funding round in February 2020, spearheaded by Andreessen Horowitz, raised $150 million and valued Roblox at $4 billion. Later that year, plans were announced for a public offering, with an IPO filing targeting $1 billion on the NYSE under the ticker "RBLX". At this time, Roblox employed over 830 full-time staff alongside approximately 1,700 trust and safety personnel.

December 2020 saw Roblox acquire Loom.ai to advance its realistic avatar technology. In early 2021, rather than pursuing a traditional IPO, the company chose a direct listing approach and requested SEC approval to modify how it reports virtual currency revenue. A Series H financing round led by Altimeter Capital and Dragoneer Investment Group increased Roblox’s valuation to $29.5 billion. The NYSE approved the direct listing, and Roblox shares began trading on March 10, 2021, with a market capitalization approaching $42 billion.

Roblox further broadened its communication tools in August 2021 by acquiring Bash Video and Guilded for a combined total near $90 million.

In March 2023, Roblox moved its headquarters within San Mateo to a larger office space at Bay Meadows encompassing roughly 180,000 square feet. By mid-2023, the company introduced the "Roblox Partner Program," collaborating with developers to create branded experiences aimed at advertisers.

In August 2023, Roblox revealed plans for an in-game career center designed to facilitate events and employee interactions; however, by September the firm reduced its talent acquisition team by 30 employees due to a slowdown in hiring activities.

Accolades

Roblox Corporation has regularly been recognized as a leading developer in the mobile gaming sector, securing sixth place in 2018, eighth in 2019, and again sixth in 2020 on the Pocket Gamer.biz rankings. Fortune included Roblox among the top small and medium-sized employers in the San Francisco Bay Area, ranking it sixteenth in 2019 and fortieth in 2021. Additionally, the company featured on Inc.'s "Inc. 5000" list of fastest-growing private companies in the United States for both 2016 and 2017. In 2020, Fast Company honored Roblox as the ninth most innovative company worldwide and the leading innovator within the gaming industry, emphasizing its significant market presence and visionary leadership.

Criticism

On August 19, 2021, the YouTube channel People Make Games released an investigative report accusing Roblox Corporation of exploiting young developers by retaining 75.5% of the revenue generated through its platform. This revenue-sharing approach raised questions regarding equitable compensation for creators, particularly minors. In response, Roblox's chief product officer Manuel Bronstein announced plans to increase payments to community developers.

After this exposé, Roblox requested that People Make Games remove the video; however, the channel published a subsequent piece addressing further concerns about child safety on the platform. These critiques have ignited discussions about Roblox’s business practices, its influence over the market, and its obligations toward its user community.

Legal disputes

In June 2016, Cinemark Theatres initiated legal action against Roblox Corporation for trademark infringement due to user-generated games mimicking Cinemark’s venues and branding.

In February 2018, YouTuber Kerstin Hoffmann (Keisyo) alleged that Roblox owed her $150,000 after preventing conversion of her 42 million Robux balance. Roblox countered that these Robux were acquired through fraudulent means.

A class-action lawsuit filed in May 2021 accused Roblox of profiting from fraudulent purchases by selling items prior to moderation and collecting a 30% commission on sales. Roblox maintained that it employs a thorough multi-stage review process before content is made available on the platform. The suit was settled in May 2023 with Roblox agreeing to pay $10 million and refund Robux to impacted users.

Also in June 2021, the National Music Publishers' Association brought a $200 million copyright infringement lawsuit against Roblox for permitting unauthorized use of music. Roblox denied any wrongdoing and intended to challenge the allegations. By September 2021, both parties reached an agreement establishing an industry-wide opt-in system for publishers.

In November 2021, Roblox filed suit against YouTuber Benjamin Robert Simon (Ruben Sim) for breach of contract and harassment following a false terrorist threat that disrupted the Roblox Developer Conference. The matter was resolved in January 2022 with Simon agreeing to pay $150,000 and receiving a permanent ban from the platform.

In October 2022, a lawsuit was filed in San Francisco Superior Court by a parent alleging that Roblox facilitated sexual exploitation of their daughter by enabling contact with predators who coerced explicit content through Discord and Snapchat.

In August 2023, a class-action complaint accused Roblox of profiting from minors involved in third-party gambling schemes using Robux, alleging violations under the RICO Act.