A man photographs a Roblox banner displayed, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York, U.S., March 10, 2021. REUTERS/Brendan McDermid/ File Photo
(Reuters) -Roblox raised its annual bookings forecast on Thursday, as user engagement increased on its platform during the summer holidays and more mature content helped it draw users with higher spending power.
The company also announced the exit of finance chief Michael Guthrie, who has been in the role for nearly seven years and had played a key role in its public listing in 2021.
Its shares fell 9% on the news before paring losses to trade down 4%, with several analysts calling it a "knee-jerk reaction" by investors.
The video gaming company, known for its popularity among younger gamers, has been encouraging developers to create more mature content such as horror games to attract older users that have more spending power.
The number of hours engaged by players above the age of 13 rose 30% in the April-to-June quarter, and the company now expects annual bookings between $4.18 billion and $4.23 billion, up from its prior view of $4 billion to $4.10 billion.
"It's the content creation of our developer community that attracts the older users and builds things that is worthy of them spending their capital, and when users spend a lot of time with us, it tends to correlate to spending money with us," Guthrie told Reuters.
Unlike traditional video game firms, Roblox relies on user-generated content and makes most of its money from the sale of its in-game currency, "Robux". The model has helped it at a time when customers are cutting back on purchases and sticking with proven titles.
Roblox forecast third-quarter bookings in the range of $1 billion to $1.03 billion, above estimates of $971.2 million, according to LSEG data.
Its second-quarter bookings exceeded estimates, benefiting from summer holidays in the U.S., which allows gamers to spend more time on its platform.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)
