Roblox shares rise 20%: video game platform bookings soar

According to news from Sina Technology News in the morning of October 18 Beijing time, Roblox's share price rose 20% on Monday, local time, which is the company's biggest one-day rise since November last year. The video game platform had previously predicted a sharp increase in September revenue as users spend more time on their games.

The San Mateo, Calif.-based company said its September orders were expected to be between $212 million and $219 million, up 15 per cent from the same period last year. This figure includes revenue, deferred income and other adjustments and offsets the dampening effect of a stronger dollar on foreign performance.

Mandeep Singh, an analyst at Bloomberg Industry Research (Bloomberg Intelligence), said the number of orders showed that the company had achieved "meaningful" monthly growth. "the company's advantage in user-generated content (UGC) should help expand its user base beyond the 9-to 13-year-old core group, growing faster than competitor Meta, which has reduced user participation in its Horizon Worlds products," he said.

Roblox said its daily active users jumped 23% to 57.8 million in September, while user participation increased 16% to 4 billion hours over the same period.

Matthew Thornton, an analyst at Truist Securities, was also optimistic about the figures, noting that "improved monetization has contributed to a rise in income".

In addition, although the stock added $4.2 billion to its market capitalization on the day, it is still down 59 per cent this year against the backdrop of a widespread sell-off in growth and technology stocks.