Why Roblox Shares Are Rising Today

Roblox Corp RBLX is trading significantly higher Tuesday after the company announced better-than-expected third-quarter earnings results.

Roblox reported a quarterly earnings loss of 13 cents per share, which beat the estimate for a loss of 14 cents per share. The company reported quarterly revenue of $509.3 million, representing a 102% increase year-over-year.

Roblox said daily active users in the third quarter totaled 47.3 million, representing an increase of 31% year-over-year.

The company said that hours engaged were 11.2 billion during the quarter, representing an increase of 28% year-over-year.

"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. 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," said David Baszucki, CEO of Roblox.

Roblox operates an online video game platform that lets young gamers create, develop and monetize games for other players.

Related Link: Roblox Q3 Earnings Highlights: Revenue Up 102%, DAUs Hit 47.3M, October DAUs Grow Before Outage

RBLX Price Action: Roblox has traded as high as $103.86 and as low as $60.50 over a 52-week period.

The stock was up 26.30% at $97.23 at time of publication.

Photo: courtesy of Roblox.