Roblox Corp reported fourth quarter earnings on Wednesday, beating Wall Street expectations and sending shares for the online gaming platform over 20% higher in early trading.
Revenue during the quarter hit $579 million, up 2% year-over-year, and up 3% year-over-year on a constant currency basis.
The jump in revenue was attributed to an increase in users spending money during the holiday season, with Roblox’s average daily active users (DAUs) reaching 65 million in January, compared with 58.8 million at the end of December.
The gaming company booked a net loss of $291.45 million, wider than the net loss of $147.26 a year ago. On a per-share basis, the loss was 48 cents in the fourth quarter, beating expectations of a 52-cent loss.
Michael Guthrie, Chief Financial Officer of Roblox, said in the company release, “Growth was strong across all geographies and age groups with particular strength among users above 17 years old.”
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Meanwhile, bookings generated from in-game purchases of Roblox’s virtual currency “Robux” jumped 17% higher to $899.4 million in the quarter ending on Dec. 31.
According to Refinitiv data, Wall Street analysts predicted $881.4 million.
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Using popular games like “Jailbreak” and “MeepCity”, Roblox has been expanding into other countries and trying to make inroads with older gamers to keep growth from easing off pandemic highs.
So far, analysts seem optimistic that Roblox’s “metaverse” will sustain its growth in a post-pandemic world as the company invests in attracting users with events like music concerts from renowned artists.
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Reuters contributed to this report.