Roblox, the online gaming platform synonymous with popular titles such as "Adopt Me!" and "Murder Mystery 2," reported robust quarterly performance, surpassing expectations and triggering a notable 17% surge in its shares. The stellar results underscored the resilience of the gaming industry in an uncertain economic landscape, a sentiment reinforced by Electronic Arts' recent upward adjustment of its annual forecast.
During the September quarter, Roblox witnessed a substantial 20% increase in average daily active users, reaching an impressive 70.2 million. This surge was particularly pronounced, given the backdrop of the summer break when children traditionally engage more with gaming activities. Finance chief Michael Guthrie highlighted the remarkable growth in western Europe and East Asia, regions characterized by older players who tend to spend more on the platform due to their higher purchasing power.
Net bookings, derived from in-game purchases of Roblox's virtual currency "Robux," outperformed expectations at $839.5 million, surpassing estimates of $830.2 million, according to data from the London Stock Exchange Group (LSEG). The company's strategic focus on expanding its user base beyond children, coupled with investments in advertising, resulted in a 20% increase in platform hours and a notable 14% rise in the number of average monthly unique paying users during the third quarter.
Roblox's recent foray into new platforms contributed to its success, with launches on Meta Platforms' Quest mixed reality headset in September garnering over 2 million lifetime installs by October 31. Additionally, the platform recorded over 15 million downloads in October from Sony's PlayStation devices, following its launch the previous month.
Despite posting a net loss of $277.2 million for the quarter ending September 30, compared to a loss of $297.8 million in the same period the previous year, the company remains optimistic about its future prospects. In February of the coming year, Roblox is set to reveal its forecasts for full-year 2024 and the first quarter, signaling continued confidence in its trajectory within the ever-evolving gaming industry.