Founder and CEO of Roblox Corp (RBLX), David Baszucki, has received a massive jump in his pay package for 2021 to $232.8 million from $6.8 million in 2020. The online entertainment platform allows users to interact with each other to explore and develop immersive, user-generated, and 3D experiences.
The long-term performance award worth about $232.2 million contributes to most of this pay package, which will be awarded throughout the years until 2027.
The vesting of performance awards will depend on the achievement of certain stock price goals, measured based on an average of the stock price over a consecutive 90-day trading period during the performance period.
Roblox’s performance in 2021 was encouraging, as its revenue jumped 107.8% year-over-year to $1.92 billion. Also, it reported a narrower loss for the year of $0.97 compared with a loss of $1.39 in 2020. Daily active users (DAUs) grew 40% to 45.5 million in 2021.
Wall Street’s Take
MKM Partners analyst Eric Handler initiated coverage on Roblox with a Hold rating and a price target of $55 (10% upside potential from its current price).
“We view Roblox as a unique, interactive entertainment platform (or metaverse) with significant long-term growth potential, but is facing near- to medium-term headwinds, causing growth to slow.”
Turning to Wall Street, RBLX stock comes in as a Moderate Buy. Out of 13 analyst ratings, there are nine Buys, three Holds, and one Sell recommendation. The average Roblox price target is $69.38, implying an upside potential of 38.7%.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into RBLX’s performance.
According to the tool, in February, Roblox’s website recorded a 9.3% monthly decrease in global visits compared to the previous year. Likewise, year-to-date website traffic growth has declined 7.7% against the same period last year.
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