Blog: covid bounce

Following the pandemic breakout in March 2020, MIDiA predicted that Covid-19-induced games engagement growth was temporary and will face a correction as the world starts coming back to life. Indeed, with four quarters of data in hindsight, the Covid Bounce effect for games is in full swing.

Roblox has launched an initial public offering (IPO) this week. Timing-wise, the twice-delayed IPO aligns with the world getting closer to opening up, and out-of-home competitive pressures returning. This invites questions around how much of the current valuation is aided by a temporary, artificial COVID-related boost, as opposed to fundamental trends which will drive growth for Roblox during the ‘new normal’.