Roblox Shares Jump Over 30% After Revenue Doubles in Q3

Online game platform Roblox saw its shares explode on Monday after the company reported that revenue had doubled in the third quarter.

Shares gained over 30%, helping the company’s stock price life off more than 60% since it debuted this past March.

For the third quarter, Roblox reported earnings of a loss of 13 cents per share and revenue (bookings) of $637.8 million adjusted. This was compared to $636.5 million that was expected by analysts according to Refinitiv.

Bookings saw a jump of 28% YOY in the quarter. Revenue excluding deferred revenue had been in line at $509.3 million, which was up 102% YOY said the company. In the previous quarter revenue had seen a growth of 127%.

“It’s clear that even as users revert back to pre-pandemic routines and behaviors, Roblox remains an important part of their day,” company executives wrote in a letter to shareholders.

According to a company shareholder letter, of the top 1,000 experiences people played in Roblox in the third quarter, 28% of them had a majority of users who were at least 13 years old, up from 10% in the year-ago quarter.

For the quarter net loss had increased to $74 million from $48.6 million in the year ago quarter.

The company said it had over 47.3 million average daily active users. This was a growth of 31% YOY and up from 43.2 million in the second quarter.

“Engagement is our north star. We’re very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox,” said David Baszucki,

Chief Executive Officer of Roblox. “We are happy to report that the developer community earned over $130 million in the quarter and is on pace to earn well over $500 million this year. As we finish 2021 and head into 2022, we will continue to invest in innovative technology to enable our developer community to do what they do best – build and create.”

“Growth in all of our core metrics – DAUs, hours, and bookings – displayed strong year-over-year growth despite lapping Covid-impacted periods and back-to-school seasonality,” said Michael Guthrie, Chief Financial Officer of Roblox. “Notwithstanding significant investments in developer economics and hiring, we also generated healthy cash from operations. Based on our October results, we appear to be having a great start to the last quarter of the year.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.