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Roblox (RBLX) stock jumps 27% on strong Q3 2021 earnings results

Roblox has reported its Q3 2021 earnings results, and shares are moving higher after-hours on the news.

Captain Business

November 8, 2021 5:30 PM

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Roblox has reported its Q3 2021 earnings results with revenues slightly beating Wall Street's expectations. The company also posted a smaller loss than expected. It appears that shareholders are focusing on the tremendous revenue growth, with sales up 102% from the same quarter a year ago. At the time this article went live, Roblox shares were up 27% in after-hours trading.

Here are some highlights from the Roblox Q3 2021 press release:

• Revenue increased 102% over Q3 2020 to $509.3 million
• Net loss attributable to common stockholders for Q3 2021 was $74.0 million
• Net cash provided by operating activities of $181.2 million; Free cash flow increased 7% over Q3 2020 to $170.6 million.
• Bookings increased 28% over Q3 2020 to $637.8 million
• Average Daily Active Users (DAUs) were 47.3 million, an increase of 31% year over year:
• Hours Engaged were 11.2 billion, an increase of 28% year over year
• Average Bookings per DAU (ABPDAU) was $13.49

“Engagement is our north star. We’re very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox,” said David Baszucki, Chief Executive Officer of Roblox. “We are happy to report that the developer community earned over $130 million in the quarter and is on pace to earn well over $500 million this year. As we finish 2021 and head into 2022, we will continue to invest in innovative technology to enable our developer community to do what they do best - build and create.”

“Growth in all of our core metrics - DAUs, hours, and bookings - displayed strong year-over-year growth despite lapping Covid-impacted periods and back-to-school seasonality,” said Michael Guthrie, Chief Financial Officer of Roblox. “Notwithstanding significant investments in developer economics and hiring, we also generated healthy cash from operations. Based on our October results, we appear to be having a great start to the last quarter of the year.”

Roblox (RBLX) has come a long way since being founded in 2006 with over 47 million daily active users. The game was offline for three days last month, which will dampen Q4 2021 revenues by about $25 million. That includes $6 million in bookings that arrived during the outage that never actually made it to the company. Roblox lost 13 cents per share in Q3 2021, which actually came in better than both Wall Street's 16 cent per share loss estimate and the even worse 21 cent per share loss whisper number. That net loss amounts to $74 million which is wider than the $48.6 million lost in Q3 2020.

The stock is up big time and is set for an excited Tuesday of trading when the market opens back up. Keep it locked on Shacknews as we continue to report on earnings results from some of the largest and most influential technology and video game companies on Earth. 

This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Captain Business

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