Roblox Corporation’s stock surged on Thursday following the release of its first-quarter financial results, which exceeded analyst expectations. The company reported a 31% year-over-year increase in bookings to $1.21 billion, surpassing the consensus estimate of $1.14 billion.
This strong performance was driven by a significant rise in daily active users (DAUs) and increased spending per user.
Roblox’s DAUs reached 97.8 million, marking a 26% increase from the previous year and exceeding analyst forecasts of 93.1 million. The number of hours engaged on the platform grew by 30% to 21.7 billion, further highlighting the platform’s growing user engagement. Additionally, the average monthly unique payers increased by 29% to 20.2 million, contributing to higher bookings per DAU.
The company’s revenue grew by 29% year-over-year to $1.04 billion, also surpassing expectations. Despite reporting a net loss of $215.06 million, Roblox narrowed its EPS loss to $0.32, better than the anticipated loss of $0.40 per share.
The company’s operating cash flow and free cash flow reached record levels, increasing by 86% and 123% year-over-year, respectively.
Roblox’s positive earnings report and increased guidance for the second quarter and full year have boosted investor confidence. The company now expects second-quarter bookings to range from $1.165 billion to $1.190 billion and full-year bookings between $5.285 billion and $5.360 billion.
This optimistic outlook, combined with the strong Q1 performance, has driven Roblox’s stock higher, reflecting a positive market response to its growth trajectory and strategic initiatives.