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Shares of Roblox (NYSE: ) jumped 19.4% at the market open after the video gaming company reported better-than-expected . The earnings report highlighted a 20% growth in Roblox’s bookings annually. Bookings is a key metric that gauges the platform’s virtual currency sales, which sat at $889 million over the period of the report.
Roblox Posts Smaller-than-Expected Q3 Net Loss and Strong User Growth
Roblox Corporation, the company behind the namesake game platform and video game creation system, underwent a significant stock price surge on Wednesday following a robust earnings report.Roblox reported a third-quarter loss per share of 45 cents, smaller than Wall Street’s expectations of 51 cents. This led to a net loss of $277.2 million for the quarter that ended on September 30, compared to $297.8 million posted in the year-earlier period.The San Mateo, California-based video game maker also saw robust user growth in the quarter, reporting 70.2 million average daily active users for the period. That’s 20% higher than in the same quarter last year. The number of hours users engaged in Roblox was reported at 16 billion, up 20% year-over-year. The company’s shares surged almost 20% at the opening bell on Wednesday. The company in March 2021 through an initial public offering ().
Roblox’s Virtual Currency Sales Jumped 20% to $839M in Q3
Apart from the obvious, the highlight of Roblox’s report was the company’s bookings growth – a key category that gauges virtual currency sales on its platform. Notably, bookings came in at $839 million in Q3, up 20% year-over-year and above analysts’ estimates of $830 million. In the previous quarter, $781 million from bookings. This metric is closely monitored by analysts and investors as it shows how much revenue Roblox generates from , a virtual currency that players can buy for real money. They spent Robux to dress their avatars and purchase other premium in-game features. According to Roblox’s Chief Financial Officer Michael Guthrie, the bookings growth was particularly strong in Western Europe and East Asia. However, the US and Canada fueled most of the growth in dollar terms across all markets.
“Bookings growth was particularly strong in Western Europe and East Asia. The U.S. and Canada still accounted for the majority of bookings growth in dollar terms among all regions.”
– said Guthrie.
At the same time, the company told its shareholders it has eased spending growth across major expense categories and informed them of a plan to begin guiding in fiscal 2024. More By This Author:Rivian Pops 6% In Premarket On Positive Q3 Report And Optimistic Guidance Earnings Review: Bayer To Make Strategic Changes After Q3 Results UBS Shares Gain At Market Open Despite $785M Loss In Q3, Here’s Why
