Roblox Corp exceeded market estimates for quarterly bookings on Monday as demand for its video games “MeepCity” and “Adopt Me!” stayed strong even after pandemic-led curbs eased, boosting its shares nearly 33% in extended trading.
People had turned to video games for entertainment during last year’s months-long isolation, sparking a boom that is yet to slow down despite schools reopening and COVID-19 restrictions easing.
Roblox, among the world’s most popular gaming sites for children, said gamers spent 11.2 billion hours on the platform during the third quarter.
“Based on our October results, we appear to be having a great start to the last quarter of the year,” Chief Financial Officer Michael Guthrie said.
Its bookings surged 28% to $637.8 million, while analysts had expected $636.5 million, according to IBES data from Refinitiv.
San Mateo, California-based Roblox has capitalized on the boom by allowing users to create an in-game metaverse, a shared virtual world where their avatars can interact with others. It has also attracted users by hosting virtual concerts of artists like Twenty One Pilots and rapper Lil Nas X.
The company has gained 47.3 million daily active users during the quarter, a rise of 31% from last year.
Despite significant investment in hiring and developer economics, the company generated healthy cash from operations, Guthrie added.
Data from analytics firm Sensor Tower shows consumer spending on video games rose 7.7% to $22.4 billion in the third quarter.
On an adjusted basis, Roblox reported a loss of 13 cents per share, compared with estimates of 14 cents per share.
Read all the Latest Tech News here
Comments
0 comment