As a key player in online gaming, Roblox (RBLX, Financial) was on an upward trend last week, rising 17% in a single day to hit a record high of $50 on October 31st, after the firm's third-quarter results topped analysts' estimates. The company's CEO, David Baszucki, continues to invest in growth and focus areas with the goal of building the world's largest social space for play while prioritizing safety and innovation.
Since it originated in the development of video games in the 1970s, Roblox has taken advantage of a mobile and socially connected transition of games, acquiring its successful business model based on digital distribution with in-game purchases. In addition to using this approach, the increase in usage during COVID-19 lockdowns has placed Roblox under the less risky gaming company.
For this quarter, Roblox reported revenues of $919 million, up 28.8% year-on-year, comfortably surpassing Wall Street expectations by 3.9%. For the next quarter, management forecasts a 26.3% increase in total revenue. Despite sell-side analysts projecting slightly slower growth of 19.9% over the next twelve months, the company's consistent performance demonstrates ongoing market confidence in its products.
This, combined with the fact that Roblox's user growth rate is even higher, at 21.6% year-on-year for daily active users totals 88.9m. Roblox itself has continued to show solid participation, and its capacity to draw in and assimilate gamers across the world bolsters that position and serves as a validation of its place within the continually changing extravaganza of the interactive entertainment genre.
