Roblox (NYSE:RBLX) shares surged nearly 19% in the pre-market session today after the online immersive platform reported robust user growth and lower-than-expected net loss for the third quarter. During the quarter, revenue jumped by 38% year-over-year to $713.2 million. EPS of -$0.45 came in higher than expectations by $0.04.
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Impressively, bookings increased by 20% to $839.5 million and the number of average daily active users (DAU) increased by 20% to 70.2 million. Further, the number of average monthly unique payers increased by 14% to 14.7 million. This robust user growth led to a 20% jump in the volume of hours engaged to 16 billion.
Importantly, Roblox is experiencing growth across all age groups and geographies as it continues to invest in AI, advertising, and deeper forms of expression on its platform. Additionally, the company has slowed spending in its major expense categories. This move means investors can expect margin expansion and operating leverage from the company over the coming periods.
What is the Prediction for RBLX Stock?
Overall, the Street has a Moderate Buy consensus rating on Roblox. With today’s price gains, shares of the company are set to open above the average RBLX price target of $38.45.
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