If you're thinking about investing in Roblox (RBLX 1.85%) in 2022, you've come to the right place. In this segment of Backstage Pass, recorded on Jan. 11, Motley Fool contributor Jose Najarro takes a look at what investors need to know about the video game developer before taking the plunge.
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Jose Najarro: With the overall digital transformation, I do enjoy companies that can help individuals get some form of new income or just create a nice side hustle, so I thought of a company that goes well with my overall gaming and that's going to be Roblox.
Roblox right now I just want to take a quick look at fundamentals. Hopefully you guys can see my screen trailing 12 months revenue, $1.6 billion, cash flow from operations positive and trailing 12 months, revenue growth triple-digit. For gaming companies though you prefer to see bookings growth, which is still, I want to say about 30% in the most recent quarter. Some other quick look at just balance sheet. Short-term in cash investments a little bit over $1.9 billion and no long-term debt. I think Roblox is pretty cool because, I mean, now you have the ability if you're a kid playing a game, instead of just playing the game, you can develop something. Or even if you're just in a game developer yourself, you can also make some extra bucks in Roblox, so what I think is pretty cool.
I'm going to do a showcase of how you would do it. Roblox for those that are not familiar, is a gaming platform, that they created their own ecosystem and I think that's pretty cool. Let's say I wanted to create a game. I would go to like Roblox Create and you can hear us start creating a game. This is a free studio, you can do it for free. They also have education that teaches you how to do this. Again, if you have a child that maybe wants to get familiar, if you wanted your child, for example, to get into coating. But don't want to have them have some form of boring coding class, you can bring them to education Roblox and there's different kind of like intro to coding and game design, code fundamentals and for me.
I don't know if I'm just biased because of my education, but I think coding is such a beneficial tool to learn even if you might not become a game developer or coder in the future, I think it's something that due to STEM careers continuing to grow, it will be a nice asset to just have even if maybe your kids trying to go into high school. I don't know if high schools now have entry applications, you can put some form of coding. But this is pretty cool how they have a lot of free lessons. If you also go to Google, there's plenty of Roblox developers jobs that have been posted some as early as four days ago.