Roblox predicts strong bookings for 2024; Year-End Holidays – 02/07/2024 5:10 pm In-game cost increases.
((Automatic translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Updated actions, added comments on paragraph 4, release details on paragraph 11) By Harshita Mary Varghese
Gaming platform Roblox RBLX.N forecast annual revenue above estimates on Wednesday after surpassing the $1 billion mark in quarterly revenue for the first time due to a surge in in-game purchases during the holiday season, sending its shares up nearly 7%.
According to research firm Newsoo, the global video game market is expected to grow 2.8% this year due to strong sales of Microsoft’s Xbox MSFT.O and Sony’s PlayStation 5 6758.T consoles, a positive sign for the gaming industry.
Roblox forecasts annual bookings generated by in-game purchases of the virtual currency “Robusses” to be between $4.14 billion and $4.28 billion, up from estimates of $4.03 billion, according to LSEG data.
“This site (results) shows that the company’s investments are paying off and while Metaverse isn’t front and center, its momentum is building behind the scenes,” said Dave Mazza, chief strategy officer at Roundhill Investments, which offers the fund Linked. For Roblox share.
Roblox saw an increase in spending on its online gaming platform during the holiday quarter, when players have more time due to the closure of schools and universities.
Fourth-quarter net income was $1.13 billion, which set a new record for the company and beat estimates of $1.08 billion.
Roblox said the growth has been “heavily influenced by older users” over the age of 13.
“Slow and steady improvements in core technology have allowed our developer communities to create better things… (which) have naturally attracted an older audience,” said Roblox CFO Michael Guthrie, explaining Roblox’s effort to diversify and age its player base. noted.
Roblox, “Brookhaven,” “Adopt Me!” Popular for games like “Blade Ball” and has partnered with several brands including Adidas ADSGn.DE, Lamborghini and L’Oreal.
OREP.PA, to attract fans to its 3D world.
Average daily active users rose 22% to 71.5 million in the fourth quarter.
However, net loss for the quarter widened to $323.7 million from $289.9 million a year ago.
