Roblox Projects Strong 2024 Bookings Amid Holiday Boost in In-Game Spending

Roblox Stock

Roblox (NYSE:RBLX) has forecasted annual bookings exceeding estimates on Wednesday, driven by surpassing $1 billion in quarterly bookings for the first time, buoyed by increased in-game purchases during the holiday season, leading to a 7% surge in its shares.

In a positive signal for the gaming sector, the global video game market is anticipated to grow by 2.8% this year, fueled by robust sales of Microsoft’s (MSFT.O) Xbox and Sony’s (6758.T) PlayStation 5 consoles, according to research firm NewZoo.

Roblox’s forecasted annual bookings, derived from in-game purchases of virtual currency “Robux,” are expected to range between $4.14 billion and $4.28 billion, surpassing the estimate of $4.03 billion, according to LSEG data.

Dave Mazza, chief strategy officer at Roundhill Investments, remarked, “This (the results) highlights that the company’s investments are paying off and while the metaverse may not be front and center, its momentum is building behind the scenes.”

During the holiday quarter, Roblox witnessed an increase in spending on its online gaming platform, with players having more leisure time due to school and college closures. Net bookings for the fourth quarter reached $1.13 billion, setting a new record for the company and surpassing the estimate of $1.08 billion.

Roblox noted that growth remained “heavily influenced by older users” above the age of 13, attributing this to a slow and steady improvement in core technology, enabling developer communities to create more engaging content that naturally attracts an older audience.

Roblox CFO Michael Guthrie highlighted the platform’s attempt to diversify and age up its player base. Roblox, known for games like “Brookhaven,” “Adopt Me!” and “Blade Ball,” has collaborated with various brands such as Adidas (ADSGn.DE), Lamborghini, and L’Oreal (OREP.PA) to engage fans in its 3D world.

Average daily active users surged by 22% to 71.5 million in the fourth quarter. However, the net loss in the quarter widened to $323.7 million compared to $289.9 million a year earlier.

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