Roblox Q3 Earnings: Bookings Jump 34%, User Base Hits 89 Million, Raises Annual Outlook

Roblox Corp RBLX stock picked up after it reported fiscal third-quarter 2024 bookings growth of 34% year-on-year to $1.13 billion, beating the analyst consensus estimate of $1.02 billion.

The video game developer reported an adjusted EPS loss of 37 cents, beating the analyst consensus loss estimate of 0.39 cents.

The revenue of the American video game developer grew by 29% Y/Y to $919 million.

Also Read: Roblox Targets 1B Users, Boosting Growth Through Apple, Alphabet, and Shopify Collaborations

The Average Daily Active Users (DAUs) were 88.9 million, up 27% year over year. The Hours Engaged were 20.7 billion, up 29% year over year.

The average monthly unique payers were 19.1 million, up 30% year over year. The Average Bookings per DAU was $12.70, up 6% year over year.

Roblox generated $247.43 million in operating cash flow as of September 30, 2024, versus $112.70 million Y/Y. Free cash flow for the quarter was $218.03 million.

“In the third quarter of 2024, our key financial and operating metrics grew at high rates and in all cases were above the guidance we delivered on our Q2 2024 earnings call with significant year-over-year growth in revenue of 29%, bookings of 34%, DAUs of 27% and Hours engaged of 29%,” said Michael Guthrie, chief financial officer of Roblox.

Outlook: Roblox expects fourth-quarter bookings of $1.34 billion—$1.36 billion (versus the consensus of $1.02 billion) and fiscal 2024 bookings of $4.34 billion—$4.37 billion (prior $4.18 billion—$4.23 billion) versus the consensus of $4.23 billion.

Roblox stock had a tough month, facing two bearish reports from Bear Cave and Hindenberg for allegedly inflating key user metrics, including daily active users (DAUs) and engagement hours, and more.

Last week, JPMorgan identified Roblox as a top pick in the video game sector, citing its strong engagement trends, accelerating ads and commerce business, and an anticipated 30% compound annual growth in free cash flow through 2027.

Price Action: RBLX stock is up 15.30% at $49.74 premarket at the last check on Thursday.

Also Read:

• What’s Going On With Taiwan Semiconductor Stock On Thursday?

Photo via Shutterstock