Roblox, the world’s largest multiplayer online game creation platform, today released its third-quarter 2021 financial report. The financial report shows that the platform’s bookings in the third quarter exceeded market expectations.
Even after the easing of the epidemic restrictions, the demand for its video games “MeepCity” and “Adopt Me!” remained strong, driving the company’s share price to rise nearly in after-hours trading 33%.
According to the financial report, Roblox’s revenue excluding advance revenue was US$509.3 million, a year-on-year increase of 102%. The company’s net loss for the quarter expanded from 48.6 million US dollars in the same period last year to 74 million US dollars; the adjusted loss per share was 13 cents, lower than the estimated 14 cents.
In addition, Roblox added 47.3 million daily active users during the quarter, an increase of 31% over the same period last year. According to global financial market data and infrastructure provider Refinitiv’s IBES data, the company’s orders rose 28% to $637.8 million, which exceeded analysts’ previous expectations of $636.5 million.
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During the months-long quarantine period last year, people turned to video games for entertainment, which sparked an upsurge. Although schools have reopened and restrictions on the new crown epidemic have been relaxed, the boom has not slowed down.
Executives wrote in a letter to shareholders: “It is clear that even if users return to their daily life and behavior before the epidemic, Roblox will still be an important part of their daily lives.”
The shareholder letter also showed that in the first 1,000 Roblox experience items played by users in the third quarter, most of the users in 28% of the items were over 13 years old, an increase from 10% in the same period last year. The company said that in the third quarter, gamers spent 11.2 billion hours on the platform.
“Judging from our October performance, the last quarter of this year seems to have a good start,” said Chief Financial Officer Michael Guthrie. Guthrie also said that although the company has invested heavily in hiring and developers, its operations still generate healthy cash flow.
Moreover, Roblox was founded in 2006 and is headquartered in San Mateo, California, and is known for providing entertainment for children. The company takes full advantage of this craze, allowing users to create an in-game meta-universe in which their characters can interact with other people.
It also attracts users by holding virtual concerts for singers such as the American rock band Twenty One Pilots and rapper Lil Nas X.
