Roblox Rallies on Surge in Video-Game Platform's Bookings | Gaming News

Roblox Rallies on Surge in Video-Game Platform's Bookings

Roblox Corp. shares surged 20%, their biggest one-day jump since November.

By:BLOOMBERG
| Updated on: Oct 19 2022, 00:18 IST
Roblox
 Roblox Corp. shares surged 20% on Monday, their biggest one-day jump since November.  (REUTERS)
Roblox
 Roblox Corp. shares surged 20% on Monday, their biggest one-day jump since November.  (REUTERS)

Roblox Corp. shares surged 20% on Monday, their biggest one-day jump since November, after the video game platform forecast a significant jump in September bookings as users spent more time on its games.

Bookings are expected to be between $212 million and $219 million, up as much as 15% from a year earlier, the San Mateo, California-based company said. That figure includes revenue, deferred revenue and other adjustments, and defied a stronger US dollar that dampened results from outside the country.

The increase in bookings suggests a “meaningful” monthly acceleration, said Mandeep Singh analyst Bloomberg Intelligence. “The company's advantage with user-generated content should help expand its user base beyond the core 9-13-year-old group faster than larger rival Meta, which saw a decline in user engagement for its Horizon Worlds offering.”

The company said daily active users jumped 23% in September to reach 57.8 million and hours engaged rose 16% to 4 billion in the same period.

Truist Securities analyst Matthew Thornton was also upbeat on the numbers, noting that “monetization improved to drive the bookings upside.”

While the stock added $4.2 billion in market value Monday, it remains down 59% this year amid a broader selloff in growth and technology stocks. The Nasdaq 100 rallied 3.5% on Monday.

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First Published Date: 19 Oct, 00:18 IST
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