Key Points
- Roblox shares rose on higher-than-expected revenue.
- Growth in daily active users (DAUs) and hours of engagement set records.
- Roblox said its operating leverage is expected to increase.
Shares of Roblox (RBLX) surged as the online video game company posted better-than-expected revenue and a record number of users.
The manufacturer of Adopt Me!, Jailbreak and Other Popular Titles said revenue, which it calls reservations and includes sales and deferred revenue, rose 23% to $774 million, ahead of the forecasts. It lost $0.44 per share, more than estimates.
Roblox Average Daily Active Users (DAU) hit a record high of 66.1 million. Engagement hours grew to 14.5 billion, a 23% gain, and also a record high.
The company has credited hiring in recent years with driving bookings growth. He added that with this growth, Roblox will now be able to begin to slow year-over-year increases in headcount and compensation costs.
The company said that 39; it anticipated the growth rate of bookings will exceed the growth rate of earnings from the first quarter of next year and through 2024 and 2025. Roblox said that this would result in an effect operational leverage.
Roblox shares increased over 7% on Wednesday and are up over 36% so far this year.
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Source: investopedia.com
