Roblox (RBLX.US), US video game developer, is trading almost 20% higher today. Stock launched today's trading with a massive bullish price gap following a release of Q3 2023 earnings report. Company managed to beat expectations in all major metrics. Let's take a quick look at the release!
Sales and bookings beat expectations
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Open account Try demo Download mobile app Download mobile appRoblox reported Q3 2023 results that beat expectations across the board. Revenue jumped almost 38% YoY to $713.2 million while bookings jumped over 19% to $839.5 million. An important point to note is that both revenue and bookings saw strong growth in each region the company operates in. Moreover, growth in daily active users also turned out to be strong across regions. Nevertheless, US & Canada continue to dominate as key booking-driver for the company as this region accounts for slightly above 22% of daily active users and over 60% of bookings and sales.
Roblox stays optimistic on the future
While Roblox did not provide financial guidance for the coming quarter or the full-year, it has struck an upbeat note on its business. Company said that strong bookings growth in western Europe and east Asia drove strong results in Q3 2023 and led to improvement in margins. Company also said that it managed to slow spending growth in major expense categories. Roblox said that strong Q3 results reflect continued innovation of its platform and growth across all age groups and geographies has been hailed by analysts as a good predictor for the future.
Q3 2023 results
- Revenue: $713.2 million vs $686 million expected (+37.8% YoY)
- US & Canada: $458.6 million (+34.3% YoY)
- Europe: $128.4 million (+39% YoY)
- APAC: $73.8 million (+52% YoY)
- Rest of World: $52.5 million (+48.9% YoY)
- Bookings: $839.5 million vs $822.2 million expected (+19.6% YoY)
- US & Canada: $525.6 million
- Europe: $158.4 million
- APAC: $85.2 million
- Rest of World: $70.3 million
- Daily active users: 70.2 million vs 70.2 million expected (+19.4% YoY)
- US & Canada: 15.7 million (+10.6% YoY)
- Europe: 18.9 million (+21.9% YoY)
- APAC: 16.2 million (+22.7% YoY)
- Rest of World: 19.4 million (+22% YoY)
- Hours engaged: 16.0 billion vs 15.78 billion expected (+19.4% YoY)
- US & Canada: 4.12 billion (+12.3% YoY)
- Europe: 4.252 billion (+23.8% YoY)
- APAC: 3.543 billion (+21.2% YoY)
- Rest of World: 4.125 billion (+22.4% YoY)
- Adjusted EBITDA: $81.1 million vs $41.7 million expected (+59.3% YoY)
- Loss per share: $0.45 (
- Average bookings per daily active user: $11.96 vs $11.76 expected (+0.2% YoY)
- Free cash flow: $59.5 million vs $17.3 million expected
- Cash and cash equivalents: $580 million vs $818.5 million expected
A look at the chart
Taking a look at the Roblox chart (RBLX.US) at the D1 interval, we can see that the stock launched today's trading with a massive bullish price gap. Stock jumped above the $35.25 resistance zone at session launch and tested the $42.50 resistance in the first hours of cash trading. However, bulls failed to break above this hurdle and shares pulled back a bit later on. Nevertheless, stock continues to trade around 18% higher on the day.
Source: xStation5
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