Reference no: EM133306980

Assignment: Given investor concerns, Baszuski is considering whether or not Roblox should take a more aggressive approach to generating cash flows in the coming year. Should Roblox begin to seek additional cash flows by allowing for in-game advertisements, immersive shopping experiences, and the inclusion of crypto and NFTs? Or should they hunker down and continue to build a safe and civil community that prioritizes the user experience?

Your team has been hired to help Baszuski analyse its current financial situation and assess opportunities for growth. Specifically, Baszuski wants you to address the following concerns in your strategy and recommendations.

1. Do the company's revenue and cost model make sense and how should Roblox make money?
2. Roblox's key performance metrics are Daily Active Users (DAUs), Hours of Engagement, Revenue, and Net Income. Looking at the trends over the last three years how is the company performing across these indicators? Provide suggestions on how the company could improve its performance.
3. Provide your analysis of the company's financial performance over the last three financial years focusing on the company's solvency, liquidity, and performance. Based on this analysis, is the company doing better or worse? Provide any recommendations you have on how the company could improve.
4. A lot of the value that Roblox generates relates to intellectual property and intangibles that are not reflected in the financial statements. How can Baszuski communicate this when talking to investors? Are there any types of intellectual property or non-physical assets that could be recorded in the financial statements?
5. Based on your analysis, are his investor's reactions justified?