Roblox lifts annual bookings forecast as in-game spending booms; shares jump


A child looks back at a banner for Roblox, 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) -Videogame platform Roblox raised its forecast for full-year 2024 bookings on Thursday, as it continues to benefit from robust spending within its virtual worlds, sending its shares up over 17%.

Roblox's free-to-play model has been attracting significant consumer spending on its platform despite a wider slowdown in gaming activity.

The company, which primarily relies on user-generated content, also has been trying to attract older users by incorporating more mature games on its platform in an attempt to tap into a wider player base.

Daily active users (DAU), a key metric that determines engagement, grew 27% - the highest growth rate in around two years - to 88.9 million in the quarter ended Sept. 30.

Roblox's outgoing finance chief, Michael Guthrie, attributes the growth in DAUs and rise in the number of older users to improvements in the company's search and discovery algorithms and frequent content updates from top developers and their games.

"We're now matching users with content that's just more interesting and relevant to them, and we're doing that from a large and growing community of creators. That's a very powerful dynamic," Guthrie told Reuters.

Earlier this month, Roblox was the target of a short seller report by Hindenburg Research, which alleged that the gaming platform inflated metrics including user numbers, engagement, and was not a safe platform for children.

"They're short sellers with a clear agenda," Guthrie said, adding that the company "categorically rejects the implications" that Roblox is dangerous to the community or it inflates metrics.

The company reported third-quarter bookings, which represents the sale of virtual currency, of $1.13 billion, beating the average analysts' estimate of $1.02 billion, according to data compiled by LSEG.

It raised its forecast for full-year 2024 bookings to between $4.34 billion and $4.37 billion from its earlier projection of between $4.18 billion and $4.23 billion.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

Apple is trying to sell loyal iPhone users on AI tools. Here's what Apple Intelligence can do
Looking for new activities? Google wants you to turn to its navigation app
Will LinkedIn's AI HR assistant select the right candidates?
Staring at gadgets while in bed? You may get cross-eyed, warn experts
Voting rights groups worry AI models are generating inaccurate and misleading responses in Spanish
Nvidia to take Intel's spot on Dow Jones Industrial Average
U.S. regulators raise questions about siting data centers at power plants
Exclusive-Walt Disney forms business unit to coordinate use of AI, augmented reality
Crypto ETFs see big inflows ahead of U.S. election, traders brace for volatility
Apple to invest up to $1.5 billion in Globalstar for satellite coverage expansion

Others Also Read