Roblox shares resumed their upward trajectory Tuesday, a day after the video game developer posted good third-quarter financial results.
Just before 2:30 p.m. ET, the company’s stock was up more than 36%.
Investors appear to be more thrilled with the company’s good October results than with the complete third quarter ended Sept. 30, since they may provide insight into the company’s fourth-quarter performance.
“Historically, October has been the smallest month of 4Q, providing further confidence around our 4Q assumptions,” Stifel analysts wrote in a note Monday.
Roblox said that throughout the first 27 days of October, average daily active users climbed by 43 percent year over year. Additionally, the organization reported high levels of engagement during that time period. However, the game was unavailable between October 28 and October 31.
Nonetheless, Roblox outperformed Wall Street estimates in terms of revenue, or bookings.
Roblox reported $637.8 million in bookings, a 28 percent increase year over year, compared to a projected $636.5 million. Revenue, excluding deferred revenue, increased 102 percent year over year to $509.3 million.
Roblox has an average daily active user base of over 47.3 million in the third quarter, up 31% year over year and up from 43.2 million in the second quarter.
“It’s clear that even as users revert back to pre-pandemic routines and behaviors, Roblox remains an important part of their day,” executives wrote in a letter to shareholders.
Source: Cnbc