Roblox predicts strong bookings for 2024; In-game cost increases through year-end holidays – February 7, 2024 at 2:00 PM.

Gaming platform Roblox 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 gaming spending during the year-end holiday season.

According to research firm Newzoo, the global video game market is expected to grow by 2.8% this year, which is a positive sign for the gaming industry. Indeed, sales of Microsoft’s Xbox console and PlayStation 5 should be supported by Sony.

Roblox forecast annual revenue generated from in-game purchases of the virtual currency “Robus” between $4.14 billion and $4.28 billion, higher than estimates of $4.03 billion according to LSEG data.

Its revenue forecast for the first quarter was also better than expected.

Net bookings for the fourth quarter were $1.13 billion, setting a new record for the company and beating estimates of $1.08 billion.

The company has seen increased spending on its online gaming platform during the holidays, when players have more time due to the closure of schools and higher education institutions.

Roblox said the growth “continues to be heavily influenced by older users” over the age of 13.

“Slow and steady improvements in core technology allowed our developer communities to create better games… (that) naturally appeal to an older audience,” said Roblox CFO Michael Guthrie, noting Roblox’s efforts to diversify and age its player base. was

Roblox, which “Brookhaven,” “Adopt Me!” is popular for games like And “Blade Ball” has partnered with a number of brands, including Adidas, Lamborghini and L’Oreal, to draw fans into its 3D world.

The company reported adjusted EBITDA, a measure of profitability scrutinized by investors, of $259.6 million, beating analysts’ expectations of $191.2 million.

Average daily active users rose 22% to 71.5 million in the fourth quarter. (Reporting by Harshita Mary Varghese; Editing by Pooja Desai)