Roblox Stock Rises After Strong Third Quarter Financials
Nov 9, 2021 By MarketDepth
Roblox Corporation (NYSE: RBLX) shares jumped about 35% on Tuesday after the Company announced its third quarter 2021 financial results.
Roblox Corporation develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that allows developers and creators to build, publish, and operate 3D experiences and other content. According to the company revenue for the third quarter increased by 102%, reaching $509.3 million, and Bookings increased 28% over Q3 2020 to $637.8 million.
“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. 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.”David Baszucki, Chief Executive Officer of Roblox
In addition, Roblox continued to add new global developers in the third quarter to the community. This talented group understands the unique value proposition that Roblox offers, including free tools, infrastructure, moderation, language translation, and access to a large and growing global audience. During the quarter, developers and creators earned $130.0 million in Developer Exchange Fees, up 52% from Q3 2020.
“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. 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.”Michael Guthrie, Chief Financial Officer of Roblox