- Roblox shares rose on higher-than-expected revenue.
- Daily active users (DAU) and engagement hours growth set records.
- Roblox said its operating leverage is set to increase.
Shares of Roblox (RBLX) jumped as the online video game company posted better-than-expected revenue and record numbers of users.
The maker of Adopt Me!, Jailbreak, and other popular titles reported revenue, which it calls bookings and includes sales and deferred revenue, increased 23% to $774 million, ahead of forecasts. It lost $0.44 per share, more than estimates.
Roblox average daily active users (DAU) hit an all-time high of 66.1 million. Engagement hours rose to 14.5 billion, a gain of 23%, and also a record.
The company credited hiring over the past few years for boosting bookings growth. It added that with that growth, Roblox will now be able to begin slowing year-over-year increases in headcount and compensation costs.
The company said that it anticipates the bookings growth rate to exceed the compensation growth rate starting in the first quarter next year and through 2024 and 2025. Roblox said that will result in operating leverage.
Shares of Roblox rose over 7% on Wednesday and are up more than 36% so far this year.