Roblox stock rises on surging revenue, daily active users

Yahoo Finance Live discusses a rise in shares of Roblox as key metrics such as revenue and daily active users in the older demographic exceeded investor expectations.

Video Transcript

- My play is Roblox. Shares popping just shy of 9%, shaking off a quarterly loss of $268 million or $0.44 a share. While that was worse than expected, investors are cheering user engagement numbers. My kid is one of them.

Average daily active users rose 22% on a year over year basis to 66 million. Engagement hours were also up. And bookings, meaning sales plus the change in deferred revenue from online purchases, or, put more simply, Robux-- that, again, was giving just basically a green light to Wall Street today. So I mean, I've contributed to this here with my kiddo, sadly.

AKIKO FUJITA: Well, Diane, you're talking about your kids using it. But here's an interesting number that stood out to me with earnings. They say older users are continuing to contribute the most. But older users, the age group we're talking about is 17 to 24.

Obviously, Roblox, huge, huge with the kids, as you say. But certainly, they're getting a big lift on that front too. And I also thought it was interesting to hear what the company had to say about potential cuts, because that's been such a focus within the tech space. We've seen so many layoffs there.

Roblox saying that they are pretty comfortable with where their headcount is right now. And so it doesn't look like we're going to see any additional cuts, at least not right.

- Yeah, I was surprised by that.

- Yeah, and just thinking about the metaverse and how all these big tech companies, from Microsoft to Meta, they've really tried to enter this space and have struggled. You have Roblox really being the leader here, continuing to engage those users. Akiko, you were just mentioning how they want to attract that, quote unquote, "older" demographic between 17 to 24.

If we take a look at the average amount that people spend in the app, that was around $11.70 in the quarter-- pretty much on par with the year ago period, although a slight deceleration from Q4 during the holiday season. Maybe parents gave their kids a few extra--

- We did.

- Yeah, because that was around $15. So it's just interesting to see the growth of this company.