RBLX Stock Spikes 28% after Roblox Reports Revenue of $509.3M, Up 102%, in Q3 2021

UTC by Steve Muchoki · 3 min read
RBLX Stock Spikes 28% after Roblox Reports Revenue of $509.3M, Up 102%, in Q3 2021
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Roblox noted that bookings increased by 28% from the third quarter of 2020 to $637.8 million. 

Roblox Corporation (NYSE: RBLX) stock traded around $98.60, up approximately 28.05% during Monday’s extended trading period. Today in the pre-market the stock is 21% up. Notably, RBLX stock had closed Monday trading at $77.00, down 1.27% from the day’s opening price. The spike has directly been attributed to third-quarter earnings results that beat analysts’ expectations.

Roblox, a global platform bringing millions of people together through shared experiences,  reported a revenue of $509.3 million, up 102% during the third quarter. Additionally, the company noted that the net loss attributed to common stockholders for the third quarter came in at $74 million.

Notably, the company’s free cash flow for the third quarter of 2021 rose by 7% to $170.6 million YoY basis. Roblox noted that bookings increased by 28% from the third quarter of 2020 to $637.8 million.

The Average Daily Active Users (DAUs) were 47.3 million, representing an increase of 31% year over year. Notably, the total hours engaged by users during the third quarter of 2021 were 11.2 billion, representing a 28% increase YoY basis. The Average Bookings per DAU (ABPDAU) was $13.49 for the third quarter that ended on September 30.

The company significantly benefited from increased customer engagement during the third quarter. “Engagement is our north star. We’re very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox,” said David Baszucki, Chief Executive Officer of Roblox. “We are happy to report that the developer community earned over $130 million in the quarter and is on pace to earn well over $500 million this year. As we finish 2021 and head into 2022, we will continue to invest in innovative technology to enable our developer community to do what they do best – build and create.”

Roblox Stock

Roblox stock has had mixed res during the past few months, whereby the market has dropped approximately 9% in the past three months but gained approximately 9% in the past one month. According to market analytics provided by MarketWatch, the company has a market capitalization of approximately $44.86 billion with 521.56 million in outstanding shares.

Having been rated 11 times in the recent past, RBLX stock received an average rating of Over. Indicating a positive outlook from Wall Street analysts.

Moreover, the company has proved itself via reporting higher than expected Q3 earnings results. “Growth in all of our core metrics – DAUs, hours, and bookings – displayed strong year-over-year growth despite lapping Covid-impacted periods and back-to-school seasonality,” said Michael Guthrie, Chief Financial Officer of Roblox. “Notwithstanding significant investments in developer economics and hiring, we also generated healthy cash from operations. Based on our October results, we appear to be having a great start to the last quarter of the year.”

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Steve Muchoki
Author Steve Muchoki

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