TLDR
- Roblox posted a third-quarter loss of $257.4 million, wider than the $240.4 million loss a year earlier
- Revenue jumped 48% to $1.36 billion while bookings surged 70% to $1.92 billion
- Two viral games, “Grow a Garden” and “Steal a Brainrot,” set industry records for concurrent players
- The company raised its full-year revenue forecast to $4.83-$4.88 billion and bookings guidance to $6.57-$6.62 billion
- Shares dropped 8.2% in premarket trading to $122.75 despite the strong growth metrics
Roblox reported mixed third-quarter results that sent shares tumbling despite strong user engagement numbers. The gaming platform posted a loss of $257.4 million for the quarter.
That represents a widening from the $240.4 million loss recorded in the same period last year. Still, the company delivered revenue growth that exceeded many expectations.
Third-quarter revenue climbed 48% year-over-year to $1.36 billion. The company’s bookings metric, which reflects deferred revenue, jumped 70% to $1.92 billion.
Engagement hours increased 91% during the quarter. The stock fell 8.2% to $122.75 in premarket trading.
Viral Games Set Industry Records
Two games on the platform captured particular attention during the quarter. “Grow a Garden” and “Steal a Brainrot” both went viral among users.
Each game set industry records for the number of players participating at the same time. This concurrent player milestone highlights the platform’s ability to create cultural moments in gaming.
The viral success of these titles contributed directly to the bookings surge. User engagement metrics reflected the impact of these breakout hits.
Revenue Guidance Gets Boost
Roblox raised its full-year revenue outlook based on the quarter’s performance. The company now projects 2025 revenue between $4.83 billion and $4.88 billion.
The platform also increased its bookings guidance for the full year. The new range sits between $6.57 billion and $6.62 billion.
That’s up from the previous forecast of $5.29 billion to $5.36 billion. The revision represents a substantial upgrade to expectations.
For the current quarter, Roblox expects revenue between $1.35 billion and $1.4 billion. Bookings are projected in a range of $2 billion to $2.05 billion.
The company reported that daily active users continued to grow. This metric tracks how many people use the platform each day.
Analysts adjusted their price targets following the results. Some lowered their targets despite the user growth numbers.
The stock initially rose after the earnings release. It then reversed course as investors digested the revenue miss against expectations.
Roblox operates a free online platform hosting millions of user-created games. The company makes money when users purchase in-game items and currency.
The platform has invested in AI technology and safety features. These investments aim to improve user experience and content moderation.
The company’s market cap stands at $92.71 billion. Year-to-date, the stock has gained 127.29%.
Average trading volume sits at 7,919,319 shares. Technical indicators currently show a buy signal.
The current quarter marks another period of robust bookings growth. Engagement hours reached a new quarterly record of 91% growth year-over-year.
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