Roblox shares surge after Q3 earnings report

Yahoo Finance’s Jared Blikre breaks down Roblox’s third-quarter earnings results.

Video Transcript

ADAM SHAPIRO: Ines, we have another bit of earnings we have to get to. Jared Blikre, the people at Roblox did something right. Shares up more than 20% after hours. What are they reporting?

JARED BLIKRE: Yeah, getting a nice beat on one of the key statistics here. That is bookings, $637.8 million. It's up 28% over the year and also beating the estimate of $624.2 million. Also, daily active users surging to 47.3 million. That's up 31% year over year. Revenue coming in at $509.3 million for the quarter. I don't necessarily have the exact comparable. It looks like it may be compared to $624 million. If so, that would be a miss. However, the stock definitely discounting it, if that's the case.

Hours engaged, 11.2 billion. That's up 28% year over year. And adjusted EBITDA coming in at $135.7 million, equating to a loss per share of $0.13 versus a loss per share of $0.26 a year ago. And a quote from the CEO David Baszucki here. 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.

Then speaking of the losses here, our net losses increased due to the higher levels of expense required to support the growth of the business and the fact that we deferred a significant amount of revenue to later periods. So the stock really surging in after hours trading here on some of those key headline number beats.

SEANA SMITH: And we can see the stock up just around 26%. Jared Blikre, thanks so much.