Roblox (NYSE:RBLX) has outperformed quarterly bookings estimates, experiencing a boost in in-game spending and attracting more users to its online gaming platform during the summer break. The platform hosts popular titles such as “Adopt Me!” and “Murder Mystery 2,” and its strong performance led to a more than 17% increase in its shares on Wednesday.
This positive outcome reflects the resilience of the video game industry, which continues to thrive in an uncertain economic environment. Last week, Electronic Arts (EA.O) raised its annual forecast, reinforcing the notion that video game spending remains robust.
During the September quarter, Roblox reported a 20% increase in average daily active users, reaching 70.2 million. This period coincides with school summer breaks when children typically engage more in gaming. The company also experienced substantial growth in Western Europe and East Asia, with these regions attracting older players who tend to spend more on the platform. Roblox’s finance chief, Michael Guthrie, noted that these regions are characterized by wealthier countries with strong purchasing power.
Net bookings, stemming from in-game purchases of Roblox’s virtual currency known as “Robux,” reached $839.5 million, surpassing estimates of $830.2 million according to LSEG data. As one of the most popular gaming sites for children globally, Roblox has been making efforts to appeal to older gamers and has been investing in advertising, which contributed to a 20% increase in hours spent on its platform and a 14% rise in the number of average monthly unique paying users during the third quarter.
In September, Roblox expanded its presence by launching on Meta Platforms’ (NASDAQ:META) Quest mixed reality headset, accumulating more than 2 million lifetime installations by October 31. Additionally, the platform achieved over 15 million downloads in October from Sony’s (6758.T) PlayStation devices following its launch the previous month.
For the quarter ending September 30, Roblox reported a net loss of $277.2 million, an improvement from the $297.8 million loss in the same period the previous year. In February of the next year, Roblox plans to reveal its forecasts for the full year 2024 and the first quarter.
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