The company’s stock has increased more than 30% since the year started and has grown 36.52% over the past month.
Online game company Roblox Corporation (NYSE: RBLX) saw its shares jump following the release of its December 2022 metrics report. The company’s shares closed up 11.77% on Tuesday on news that its bookings for the year grew. According to the December 2022 key metrics, Roblox estimated bookings were between $430 million and $439 million, resulting in a 17% gain in the month. Notably, bookings is what the online game platform calls revenue, which it generates via selling its virtual currency Robux. Players purchase Robux to buy premium features within the game and also to dress up their avatars. On a daily basis in December, the average bookings per active user were between $6.99 and $7.14.
Additionally, in December, Roblox revealed that its daily active users (DAUs) increased by 18% YoY to 61.5 million. Also, players spend more hours on the gaming platform, up to 4.7 billion hours. This represents a growth of 21% compared to the previous year. The December 2022 update encouraged investors after the November report showed that Roblox was experiencing slowing growth. Also, the key metrics hinted that the company was generating less from its daily users. The November report came at a time the video game space was continually suffering hits of declined sales. Many game companies began to cut their outlook for the coming quarters during the period.
At press time, the pre-market Roblox stock is down 0.38% to $36.98. The company’s stock has increased more than 30% since the year started and has grown 36.52% over the past month. The online game company has also seen its shares surge 20.64% in the last five days. However, RBLX dropped over 43% over the past year and another 12.88% in the last three months.
In the December 2022 report, Roblox said its estimate on the impact of foreign currency fluctuations resulted in about a 1% loss in its YoY revenue growth rate. Also, it led to a 2% -3% YoY rise in its December booking. It added:
“Thus, on a constant currency basis, we estimate our year-over-year December 2022 revenue decline would have been between -5% -0%, our year-over-year December 2022 bookings growth would have been 20% -22%, and our year-over-year December 2022 ABPDAU growth rate would have been 1% – 3%.”
Read other business news on Coinspeaker.
next