Nov. 8 (Reuters) – Roblox Corp (RBLX.N) topped market estimates for quarterly bookings on Monday as demand for its “MeepCity” and “Adopt Me!” has remained strong even after the easing of restrictions linked to the pandemic, increasing its actions by nearly 33% in the prolonged exchanges.
People had turned to video games for entertainment during the months of isolation last year, triggering a boom that has yet to slow despite schools reopening and COVID-19 restrictions easing.
Roblox, one of the world’s most popular children’s game sites, said the number of daily active users increased 31% to 47.3 million in the third quarter and gamers spent 11.2 billion hours on the platform.
“Based on our October results, we appear to have a great start to the last quarter of the year,” said CFO Michael Guthrie.
Bookings jumped 28% to $ 637.8 million, while analysts expected $ 636.5 million, according to IBES data from Refinitiv.
CFRA Research analyst John Freeman said Roblox’s growth is driven by its video games, its social media element, and the way it has developed a platform for creating video game experiences.
Roblox, based in San Mateo, Calif., Has capitalized on the gaming boom by allowing users to create an in-game metaverse, a shared virtual world where their avatars can interact with others. He also attracted users by hosting virtual concerts of artists like Twenty One Pilots and rapper Lil Nas X.
“This company will not just be a revenue machine, it will be a revenue machine,” added Freeman.
CFO Guthrie also said Roblox has generated healthy cash flow from its operations despite significant investments in hiring and economics of developers.
On an adjusted basis, it reported a loss of 13 cents per share, against estimates of 14 cents per share.
Report by Tiyashi Datta in Bangalore; Editing by Devika Syamnath
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