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1 Thing Roblox Is Trying in Order to Avoid a Slowdown

By Jon Quast, Jose Najarro, and Sanmeet Deo – Oct 18, 2021 at 10:30AM

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Can virtual events keep its user base engaged?

On Sept. 24, Roblox (RBLX 4.95%) launched something called Roblox Listening Parties. This allows music artists to launch new music at a digital event inside of Roblox's platform. And before you dismiss this as insignificant, remember that musician Lil Nas X held a concert on Roblox that was viewed over 30 million times. 

For Roblox, it's trying new things like Roblox Listening Parties to keep its user base engaged, which is particularly important as vaccination rates increase and people get back to more normal activities. In this video from Motley Fool Backstage Pass, recorded on Sept. 27, Fool analyst Sanmeet Deo talks with Fool contributor Jose Najarro about the effort to keep the user base engaged.

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Jose Najarro: Sure. I'll jump in real quick.

Sanmeet Deo: Sure.

Najarro: I think you guys talked about it in previous episodes you mentioned Roblox with their metrics. But one thing that gets me so excited about the gaming industry is many investors believe that now that lockdowns are easing up around the world, we were going to see a bit of a huge decrease in the gaming community. There have been certain reports, especially from Roblox metrics that you guys probably, I think, looked at last week or two weeks ago, that there was a nice improvement still in gaming market. Today I'm actually going to do a deep dive in the company. They're showing us similar things with our guidance that even though last year we had a lot of people at home, even though people are going back to work now, kids are going back to school and everything, we're still seeing huge growth. That's what really excites me within the market right now.

Deo: It's interesting actually because Roblox is a company that I follow as well pretty closely and try to, not only as an investor, but as a parent who has a kid that plays a lot of Roblox, not only just monitoring how much usage they have, and then also monitoring their metrics. I get an anecdotal look at it as well as a investor look at it.

I noticed that two of their key metrics didn't show too much concern in terms of, for me, at least in terms of slowing down. I know schools are beginning again. In New York City, they just started a couple of weeks ago. As the school season starts really coming in here then that will be interesting to see how September looks for their metrics as well.

But it's interesting that I'd love to hear what you are going to talk about later about you're seeing some other metrics that another company that's showing the slowdown that people thought is not happening.

An interesting thing that you mentioned about Roblox too, I don't know if you guys saw. Let me share my screen here real quick. They're doing a lot of interesting things to ramp up engagement. Also, just create that metaverse platform. Here, they're talking about launching listening parties as a new way to release music. I think we talked about, Jon, when you were on the show, last show before about concerts on Roblox and Fortnite, and how that was a way to create engagement. Also, help these artists monetize themselves and put themselves out there into another audience.

This is very interesting too, something that they are doing to increase engagement and get out there in terms of pumping that user base.

Sanmeet Deo owns shares of Roblox Corporation. The Motley Fool owns shares of and recommends Roblox Corporation. The Motley Fool has a disclosure policy.

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