Roblox Corp. shares surged the most in nine months after the online video game platform reported bookings that beat analysts’ estimates, buoyed by a boom in play time over the holidays and a jump in active users.
(Bloomberg) — Roblox Corp. shares surged the most in nine months after the online video game platform reported bookings that beat analysts’ estimates, buoyed by a boom in play time over the holidays and a jump in active users.
San Mateo, California-based Roblox reported fourth-quarter net bookings, which the company defines as sales plus the change in deferred revenue from online purchases, rose 17% to $899.4 million. That beat analysts’ forecasts for $876.2 million. The loss per share was 48 cents, while analysts expected a loss of 45 cents on average.
The shares jumped as much as 27%, the biggest intraday gain since May, to $45.34 in New York.
Last month Roblox reported better-than-expected bookings and daily active users for December, sending its shares surging and setting a high bar for the fourth quarter results. On Wednesday Roblox said daily active users in January reached 65 million— its highest ever—and estimated bookings rose 19% to 21%.
“Bookings accelerated meaningfully in December and January, with year over year growth exceeding 20% in both months,” said Chief Financial Officer Michael Guthrie, in a statement. “Growth was strong across all geographies and age groups with particular strength among users above 17 years old.”
Roblox, traditionally a platform aimed at teens and preteens, has been steadily increasing its user base and drawing in more players who pay for extra services and perks. In the fourth quarter, Roblox saw an all-time high of 13.4 million people paying for in-game content.
“We added more new payers than ever before, with the exception of the very first quarter of Covid,” Guthrie said in a call with analysts. The company’s attempts to appeal to an older demographic helped contributed to that growth, he said.
The average bookings per user fell 2% to $15.29, largely due to the strength of the US dollar, especially against the euro and British pound. On a constant currency basis, average bookings per user rose 2%. The company’s bookings account for spending of the virtual currency Robux, which is used to purchase items such as clothing, accessories or other items or perks within the platform’s virtual worlds.
Roblox is considered a leader in the emerging metaverse and investors are looking to see an increase in active users to validate that strategy, even as companies like Microsoft Corp. are paring back some efforts in the space. The metaverse, a virtual world where people are expected to interact for work, learning, leisure and entertainment, remains an attractive prospect to top brands seeking to tap Roblox’s young user base, including Ralph Lauren, West Elm and Chipotle, who have launched “experiences” on the gaming platform.
Read more about the metaverse: Walmart Pushes Into Metaverse With Virtual Worlds on Roblox
(Updates with shares)
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