Business

Roblox stock surges 27% after the online-gaming platform reveals its revenue doubled last quarter

roblox 1
Roblox.

  • Roblox shares surged as much as 27% in premarket trading on Tuesday.
  • The online-gaming platform’s revenue doubled year-on-year to $509 million last quarter.
  • Soaring costs meant Roblox’s operating loss increased 50% to $77 million.

Roblox shares jumped as much as 27% in premarket trading on Tuesday after the online-gaming platform, which lets users design and interact in virtual worlds, reported strong third-quarter earnings on Monday.

Bookings, which reflect the total amount of virtual currency bought by users in a period, jumped 28% year-on-year to $638 million last quarter. The average number of daily active users also soared 31% to north of 47 million. The robust demand fueled a 102% increase in Roblox’s revenue to $509 million.

CEO David Baszucki trumpeted a 28% increase in playtime in Roblox’s earnings release. “Engagement is our north star,” he said. “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.”

On the other hand, Roblox’s total costs jumped 93% to $587 million as the company spent more on developer fees, infrastructure, research, and other expenses. The upshot was a 50% year-on-year increase in its operating loss to $77 million.

Roblox also suffered outages in the last three days of October, which cost it an estimated $25 million in lost bookings, and meant its developers weren’t paid for $6 million of bookings in the period. The company plans to credit developers’ accounts with $6.8 million to compensate them for the downtime.

The video-game company went public at $64.50 a share in March. Its stock price climbed as high as $104 in June, valuing the company at nearly $60 billion.

Read the original article on Business Insider

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