- Roblox shares rose on Tuesday.
- After the bell on Monday, the company reported better-than-expected financial results for the third quarter.
Shares of Roblox continued to rally on Tuesday, a day after the video game company reported strong third-quarter financial results.
The company’s stock was up more than 32% around noon ET.
Investors appear to be impressed by the company’s strong October results, rather than the third quarter ended Sept. 30, because it could give an indication of what lies ahead for the fourth quarter.
“Historically, October has been the shortest month of 4Q, providing further confidence in our 4Q assumptions,” Stifel analysts wrote in a note on Monday.
Roblox said average daily active users increased 43% year over year during the first 27 days of October. The company also reported strong engagement during that period. (However, the game was offline between October 28 and October 31.)
Still, Roblox beat Wall Street’s expectations when it comes to revenue (bookings).
Roblox booked $637.8 million compared to an estimated $636.5 million, up 28% year over year. Revenue excluding deferred revenue came in at $509.3 million, up 102% year over year.
Roblox’s average daily active users were over 47.3 million in the third quarter, up 31% year over year and up from 43.2 million in the second quarter.
“It is clear that even as users revert to pre-pandemic routines and behavior, Roblox remains an important part of their day,” the officials wrote in a statement. letter to shareholders.
— Businesshala’s Jordan Novett and Michael Bloom