Roblox stock soars 16% after revenue beat, strong user growth

• Roblox stock soared 15% Thursday after the company reported second-quarter revenue that beat expectations amid strong user growth.
• The game platform saw $1.44 billion in net bookings, up 51% over the year prior.
• Roblox raised its guidance for the third quarter and now expects between $1.59 billion and $1.64 billion in net bookings.

Roblox stock soared 16% Thursday after the company reported second-quarter revenue that beat expectations amid strong user growth.

The gaming platform saw $1.44 billion in net bookings, up 51% over the year prior. Analysts polled by LSEG expected $1.24 billion in net bookings for the quarter.

User and engagement numbers were also strong for the company, with daily active users at 111.8 million, up 41% year-over-year, and hours engaged at 27.4 billion, up 58% year-over-year.

StreetAccount expected 106 million DAUs.

“Our year on year growth this quarter is a reflection of our strategic investments in infrastructure and performance, discovery, and the virtual economy, which continue to create fertile conditions for creators to thrive as part of a healthy, interconnected ecosystem,” said CEO David Baszucki in a release.

Baszucki added that the company is looking to grab 10% of the global gaming content market.

• Apple is facing pressure from Wall Street to figure out its AI strategy
• Big Tech split? Google to sign EU's AI guidelines despite Meta snub
• Cash App opens up to Apple Pay and Google Pay for the first time
• Spotify drops 11% for worst day in two years on weak guidance

Roblox raised its booking guidance for the third quarter and now expects between $1.59 billion and $1.64 billion. FactSet expected $1.42 billion in third-quarter bookings.

The gaming platform did report a net loss of $279.38 million, a loss of 41 cents per share. Roblox had a net loss of $205.88 million, a loss of 32 cents per share, in the same quarter a year ago.

The platform rolled out new age verification tools two weeks ago, as the broader gaming industry and app stores have faced regulatory pressure to improve safety for young users and limit access to certain types of content.

Roblox Chief Safety Officer Matt Kaufman said the age-estimation tools will help keep younger users from accessing “something that should be limited to an older audience — 13 and over.”

Kaufman said having more mature content opportunities will help teens and adults stay on Roblox instead of moving to other platforms.