-
After predicting a spike in bookings in September as users spend more time playing games, the video game platform Roblox saw a 20% increase in shares on Monday. The San Mateo, California-based corporation predicted orders to total between $212 million and $219 million, up to 15% from the previous year. The figure accounts for revenue, deferred revenue, and other adjustments, which offset the negative effects of a stronger US dollar on global performance.
Analysts at Mandeep Singh told Bloomberg Intelligence that the surge in bookings indicated a “meaningful” monthly acceleration. “The company’s dominance in user-generated content is driving a core 9- to 13-year-old at a faster rate than its larger competitor, Meta, which has seen a decline in user engagement with its Horizon Worlds offering.
His daily active users increased by 23% to 57.8 million in September, and user time spent increased by 16% to 40 in the same period. Matthew Thornton, an analyst at Truist Securities, was also bullish on the numbers, noting that “improved monetization and increased bookings”. The stock added $4.2 billion to its market cap on Monday, but remains down 59% this year amid a broad selloff of growth and technology stocks, with the Nasdaq 100 rising 3.5% on Monday.