Proactive Investors - Roblox Corp (NYSE:RBLX) posted stronger bookings and narrower losses than expected for the fourth quarter on Wednesday, pushing shares in the video game developer higher.
Bookings, which include sales and deferred revenue, climbed by 25% to $1.13 billion during the three months to December, Roblox said in its earnings report, outdoing London Stock Exchange Group (LON:LSEG) estimates of $1.08 billion.
Losses over the period of $0.52 per share were narrower than the anticipated $0.55, but up on last year’s $0.48 loss per share.
Chief financial officer Michael Guthrie noted that the last three months of the year had brought Roblox its first quarterly bookings figure in excess of $1 billion.
“We are scaling our operations efficiently, thereby improving our margins and cash flow, and we expect those trends to continue in 2024,” he said.
Roblox, which is free to download and play, generates revenue through selling virtual currency for users to spend on avatars and other in-game features.
Roblox said it is aiming to attract more than one billion daily active users in the long run, from an average of 75.1 million toward the end of 2023.
“We enter 2024 with even more conviction of being able to achieve our long-term goal,” chief executive David Baszucki commented.
“We continue to benefit from the strong network effects in content, social connection, and communication, as well as our investments in immersive experiences, advertising, and AI.”
Bookings were 23% higher at $3.52 billion for the full year, with the group laying out guidance for the figure to sit between $4.14 billion and $4.28 billion in 2024.
Shares climbed 9.11% to $44.30 before the market opened.