Roblox (RBLX) Q3 2023 Earnings

Roblox (RBLX) Q3 2023 Earnings

  • Losses per share: 52 cents versus 55 cents analysts had expected, according to LSEG, formerly Refinitiv.
  • Revenue (bookings): $1.13 billion versus $1.08 billion expected, according to LSEG.

The revenue number is what Roblox calls reservations, a category that includes sales recognized during the quarter and deferred revenue.

The video game developer generates revenue from sales of its virtual currency called Robux, which players use to decorate their avatars and purchase other premium in-game features.

Roblox also reported full-year revenue of $3.52 billion, versus LSEG’s consensus estimate of $3.41 billion. The company’s loss per share for the year was $1.87, compared to the consensus estimate of $1.91.

Roblox’s quarterly bookings reached $1.1 billion — the company’s highest ever.

“We enter 2024 with greater conviction that we can achieve our long-term goal of attracting more than 1 billion daily active users with optimism and civility,” Roblox CEO David Baszucki said in a statement. The company reported an average number of daily active users, or DAUs, of 71.5 million during the quarter, up 22% compared to the same period last year.

Roblox’s average DAUs have grown over the past two quarters, after a stall in growth in the back half of fiscal 2022 and a slight slide between the first and second fiscal quarters of 2023.

Average bookings per daily active user rose 3% to $15.75, reflecting the rise Roblox has historically seen in its fiscal fourth quarter.

“We’re seeing strength, both from international players and from older players on the platform,” CEO Baszucki told CNBC’s Steve Kovach, pointing to double-digit growth in both the 13-and-up category and the non-U.S. and Canadian segment. “These are good trends, because these are really large groups,” Baszucki said.

The number of user interaction hours decreased from 16 million in the third quarter of 2023 to 15.5 million during the fourth quarter. However, it represents a 21% rise compared to the same period last year.

The company provided guidance for 2024 and the fiscal first quarter. The company expects first-quarter bookings to range between $910 million and $940 million, and a net loss of between $342 million and $347 million. It directed full-year 2024 bookings at between $4.1 billion and $4.28 billion, above the agreed-upon range of $3.4 billion to $4.27 billion, and a net loss of between $1.37 billion and $1.4 billion.

Staff costs continue to pressure the company, although they have grown at a slower rate than bookings. Excluding stock-based compensation, quarterly employee costs rose 24% year over year from $160 million to $198 million, with the largest increases reflected in Roblox’s infrastructure and trust and safety teams.

(Tags for translation) Breaking News: Technology

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