Tags: Technology, Technology news

Roblox Stocks Skyrocketed after Reporting Solid Q3 Results

On Tuesday, shares of Roblox Corporation skyrocketed in the post-trading after reporting solid third-quarter 2021 results. 

Accordingly, the video game developer boosted 28.19% or 21.71 points to $98.71 per share. It significantly rallied from its Monday low of 1.27% or 0.99 points to $77.00 per share. 

Founded last 2006, Roblox is a technology company that is popular in providing entertainment to children. 

Currently, it stands with a market capitalization of $44.29 billion and shares outstanding of $575.15 million. 

In the latest report, Roblox revenue on bookings climbed 28.00% year-over-year to $637.80 million. Remarkably, it topped the market estimate of $636.50 million. 

Additionally, its Q3 loss hiked up to 102% year-over-year to $0.13 per share on revenue of $509.30 million. 

Subsequently, it surpassed the expected loss of $0.14 on revenue of $382.10 million.

Correspondingly, its daily active users jumped 31.00% to $47.30 million from last year despite the easing of pandemic restrictions and back-to-school season.      

Accordingly, players over the age of 13 hiked up to 50.40% from the previous data of 44.50% last year. Then,  28.00% were at least 13 years old, which is 10.00% higher.

Remarkably, user growth was highest in the Asia-Pacific region, contributing 75.00% gain. 

Additionally, the number of hours that players spend on the app edged up to 28.00%, to $11.20 billion. 

Then, developer exchange fees rose 52.00% to $130.00 million from the previous figure of $85.50 million. 

Overall, Roblox posted gains in all of its core metrics. It also reassured investors that it is on pace to deliver $500.00 million to developers this year.

Roblox Outage Failed to Stop October Growth

Furthermore, Roblox announced that its performance in October remained unaffected by the previous three-day outage. 

Accordingly, the online game was unavailable between October 28 and October 31, costing the firm about $25.00 million in bookings. 

Despite this decline, Roblox noted that bookings are still between $177.00 million and $179.00 million this year. This figure is 30.00% to 34.00% higher than last year. 

Consequently, Roblox forecasted its monthly bookings in between $189.00 million to $192.00 million compared to last year’s $165.10 million. 

Thus, estimated bookings for October jumped between 7.00% to 8.00%, even with the outage.

Altogether, the projected October revenue gained 87.00% to between $177.00 million to $180.00 million. This is compared with the full October 2020 revenue of $94.70 million.

Meanwhile, investors looked forward to the scheduled earnings call of Roblox today. 

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