Roblox Corp (NYSE: RBLX) opened about 25% up on Wednesday after beating estimates for bookings in the holiday quarter.
The video game developer reported $899 million worth of bookings versus $871 million that analysts had expected for its recent quarter. Reacting to the earnings print, Ava Labs’ President John Wu said:
There’s a lot to like here. The unique business mode, the web3 parallels and the investments from 2022 are starting to pay off in the form of monetisation.
Earlier this week, a Bank of America analyst recommended buying Roblox stock. His $54 price target suggests another 20% upside from here.
Other notable figures in the earnings report include a 19% annualised growth in average daily active users (DAUs) to 58.8 million and an 18% increase in hours engaged. On Yahoo Finance, Wu added:
Roblox is trying to distance itself from an innovative gaming company to more of a metaverse company with experiences immersed in communications. It does have a lot of ethos of a Web3 company.
Average bookings per daily active user (ABPDAU), however, were down 2% versus last year.
Roblox now estimates $213 million to $216 million in revenue for January on up to $271 million of bookings. In the earnings press release, CFO Michael Guthrie said:
Bookings accelerated in December and January, with year over year growth exceeding 20% in both months. Growth was strong across all geographies and age groups with particular strength among users above 17 years old.
For the year, Roblox stock is now up more than 50%.
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