Gaming platform giant Roblox recorded another strong quarter in the three months to the end of June, with revenues surging 31% year on year to $893.5 million on the back of increased user spending.
Roblox co-founder and CEO Dave Baszucki told analysts during an earnings call on August 1 that the company beat its revenue guidance of between $855 million and $880 million for the second quarter.
Bookings in Q2 jumped 22% YoY to $955.2 million, also surpassing the company’s guidance range of $870 million to $900 million. It came as Roblox’s average daily active users (DAUs) climbed 21% YoY to a record 79.5 million.
The platform’s over-13 DAUs, or users over the age of 13 years old, also climbed 26% YoY, accounting for 58% of its total DAUs. This suggests a significant shift in the platform’s demographic.
Roblox is traditionally associated with a younger audience, but this growth suggests the platform is appealing to an older demographic. This could lead to increased spending on virtual goods and potentially higher revenue for Roblox as older users generally have more disposable income.
“Our strong Q2 growth across all core metrics is driven by diverse and high quality content. As a UGC platform, we support a large and motivated creator community that continues to thrive.”
Dave Baszucki, Roblox
Globally, the US and Canada reported the fastest growth in Roblox user numbers since the first quarter of 2021. In Japan, Roblox’s DAU grew 56% YoY in Q2, while in India, DAUs grew 57%, Baszucki added.
Roblox’s Q2 earnings report also showed that hours engaged climbed 24% YoY to a record 17.4 billion. Average bookings per DAU, meanwhile, edged up 1% YoY to $12.01.
Meanwhile, Roblox booked a net loss attributable to shareholders of $205.9 million, narrowing from $282.8 million a year prior. Net loss per share shrank to $0.32 from $0.46. Baszucki said, “We continue to show a lot of fixed cost discipline.”
“Our strong Q2 growth across all core metrics is driven by diverse and high quality content. As a UGC platform, we support a large and motivated creator community that continues to thrive,” Baszucki said in a press release announcing the company’s Q2 results.
“The dynamic Roblox content ecosystem is unique and our platform continues to attract users of all ages from across the globe. Going forward, we will continue to invest in our core platform to help our creator community build better and safer experiences and reach more people,” the executive added.
Roblox has bolstered its position as a hub for music discovery and consumption through strategic partnerships and in-platform experiences. Back in June, STYNGR, a music-in-gaming platform, teamed up with Warner Music Group to offer ad-free radio stations directly within Roblox.
The new offering, called “Batteries,” functions as a purchasable in-game item that powers STYNGR’s Boombox product on Roblox. Boombox was launched earlier this year via a partnership with Universal Music Group.
Roblox has also hosted music experiences for companies like Sony Music, Universal Music, and Karta, among many others, as music firms tap into Roblox to enhance the reach of their repertoire and as metaverse companies look to further showcase their technology. Roblox counts Warner Music group among its investors.
Following its strong Q2, Roblox raised its earnings forecast for the year, now expecting full-year revenue at about $3.49 billion to $3.54 billion, versus the previous guidance of between $3.45 billion and $3.53 billion.
“Going forward, we will continue to invest in our core platform to help our creator community build better and safer experiences and reach more people.”
Dave Baszucki, Roblox
Bookings are expected to reach $4.18 billion to $4.23 billion in 2024, up from the previous guidance range of between $4 billion and $4.1 billion.
Meanwhile, the company disclosed in its Form 10-Q filing with the US Securities and Exchange Commission that Michael Guthrie has stepped down as Chief Financial Officer “to pursue personal interests.” He will remain in the role until the company appoints a new CFO.
Guthrie has been in the role for almost seven years and served as finance chief when the company went public in 2021.
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