Roblox

Halal Rating :
Comfortable
Last Price $71.5
Market Cap $45.99b
1D Change

0.0 %

1 Year Change

84.15 %

Next Earnings Date

Yet to be announced

Company Overview

Roblox Corporation operates an online entertainment platform that enables users to create, develop, and monetize games and experiences. The platform allows users to interact with each other in immersive 3D worlds. The company generates revenue primarily through sales of virtual currency (Robux) which users spend on in-game items and experiences.

Revenue Sources

Pass

After reviewing Roblox's revenue sources, the primary income streams come from: sale of virtual currency (Robux), licensing and royalty fees from developers, and advertising. The platform enables user-generated content creation and virtual item transactions, which are halal activities as they involve real value exchange between parties. While there is an element of chance in some user-created games, Roblox itself operates as a technology platform facilitating legitimate digital goods and services transactions.

Reliance on Interest

Pass
Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
Sept. 30, 2024 $918.95m $1.21b - $10.29m 0.00% 0.85%
June 30, 2024 $893.54m $1.14b - $10.2m 0.00% 0.89%
March 31, 2024 $801.3m $1.11b - $10.36m 0.00% 0.93%
Dec. 31, 2023 $749.94m $1.12b - $10.3m 0.00% 0.92%

Analyzing the last four quarters of financial data, interest expense has been consistently around $10 million per quarter, while total expenses range between $1.1-1.2 billion per quarter. The interest expense ratio is well below the 5% threshold for all quarters examined.

Operational Ethics

Pass

Based on available information from SEC filings and company reports, there is no evidence of material ongoing associations with entities involved in human rights violations. While Roblox does operate in China through a joint venture with Tencent, there is no clear evidence of direct association with the Chinese Communist Party that would constitute a violation of this criterion.

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