Roblox, the hugely popular online gaming platform, reported its first-quarter earnings after becoming a listed company. Its revenue more than doubled as the videogame company benefited from the pandemic-induced demand for home entertainment.
Roblox’s quarterly revenue came in at $387 million, up 140% from a year earlier. The GAAP net loss for the quarter was $134.2 million, or 46 cents a share. But operating cash flow was positive, which means cash is coming into the business, said chief business officer Craig Donata. Bookings (money spent via Robux) for the first quarter were $652.3 million, up 161% from the same quarter a year ago. More users spent money on Roblox’s virtual currency Robux, to buy in-game items like pets and costumes for players’ avatars.
Roblox revenue grows 140%
During the pandemic, children and teens, the main customers, turned to the platform for engaging in games with friends. The number of average daily users was 42.1 million in the quarter, up 79% from last year.
The results had Roblox shares trading up 5% at $67.18 a share in after-hour trading. “We had a strong quarter in terms of bookings, revenue, and operating cash flow, and more important, in terms of daily active user growth and time spent by players,” Donato said.
“Even for countries coming out of Covid, we have seen amazing stickiness with our daily active users and bookings,” Dave Baszucki, chief executive and founder of Roblox, said in an interview. “Hours per user is moving more toward historic levels, but we’re very optimistic.”
The net loss of $134.2 million from $74.4 million in the year-ago quarter included $51.9 million in advisory, legal and other expenses tied to the public listing process. Analysts were projecting a loss of 22 cents a share.
“Our first quarter 2021 results enabled us to continue investing aggressively in the key areas that we believe will drive long term growth and value, specifically hiring talented engineering and product professionals and growing the earnings for our developer community,” said chief financial officer of Roblox Michael Guthrie, in a statement. “We believe we must continue to innovate and so remain focused on building great technology to make progress on our key growth vectors, primarily international expansion and expanding the age demographic of our users.”
Roblox won’t be issuing guidance and instead will report monthly metrics, as well as host investor events once or twice a year, according to CEO Baszucki.
After listing on the New York Exchange, the company’s share price opened trading at $64.50 and ended the day at $69.50, giving it a market capitalization of $38.3billion and a fully diluted valuation of around $45.2 billion. Its last funding round gave it a valuation of $29.5 billion.
The San Mateo, California-based company hosts more than 18 million user-developed virtual worlds where people go to play games and interact with friends. The video game platform company increased its sales by 82% in 2020 to $924 million. That is almost a triple growth from its $325 million revenue in 2018.
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