Roblox Shares Rise After First-Quarter Bookings Top Estimates
(Bloomberg) -- Shares of Roblox Corp., which went public in March, rose in late trading after the kid-focused video-game company reported first-quarter bookings that topped analyst estimates.
- Roblox reported bookings -- primarily the value of virtual currency that users purchase on the company’s platform -- of $652.3 million, exceeding its prior guidance of $550 million to $575 million. Analysts polled by Bloomberg expected adjusted bookings of $575.83 million. The company provided full-year and first- and second-quarter guidance in March.
- See more details.
Key Insights
- Back in March, Roblox warned of slowing growth, as the boom it enjoyed during the pandemic was expected to disappear. Total hours users spent on the gaming platform could drop as much as 11% in the second quarter, Roblox had said. However, it said Monday that April daily active users were up 37% year-over-year, with bookings up 59% to 61%.
- To keep growing, the company is trying to broaden its user demographics from kids to office workers and even older adults. It’s also expanding internationally in western Europe and East Asia, and hopes to return to higher rates of growth in 2022, the company said in March.
- Roblox said it won’t issue additional quarterly and annual guidance. Instead, it will provide monthly reports on metrics like daily active users, hours engages and revenue for the prior month.
Market Reaction
- Roblox shares were up 3.9% to $66.50 at 4:28 p.m. in New York. They had fallen 0.8% through Monday’s close since opening trading at $64.50 apiece in March.
Get More
- Read the statement.
- See Roblox estimates.
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