Roblox shares surge as Q1 earnings beat estimates

Published 01/05/2025, 13:14
© Reuters

Investing.com -- Roblox Corporation saw its shares jump 6.3% after the gaming platform reported better-than-expected first quarter 2025 results and provided strong guidance.

The company posted adjusted earnings per share of -$0.32, surpassing analyst estimates of -$0.40. Revenue for the quarter came in at $1.21 billion, exceeding the consensus forecast of $1.14 billion and marking a 29% YoY increase.

Roblox’s bookings, a key metric for the gaming industry, rose 31% YoY to $1.21 billion, driven by a 26% increase in daily active users to 97.8 million. The company also reported a 30% YoY growth in hours engaged, reaching 21.7 billion for the quarter.

"In Q1 2025, all of our results were above the guidance we provided on our Q4 2024 earnings call as we continue to deliver on several key growth initiatives," said David Baszucki, founder and CEO of Roblox.

Looking ahead, Roblox provided upbeat guidance for the second quarter, projecting revenue between $1.02 billion and $1.05 billion, and bookings between $1.17 billion and $1.19 billion. This outlook surpasses the analyst consensus of $1.14 billion in revenue for Q2.

The company also updated its full-year 2025 guidance, forecasting revenue between $4.29 billion and $4.37 billion, and bookings between $5.29 billion and $5.36 billion.

Despite the positive results, Roblox reported a consolidated net loss of $216.3 million for the first quarter. However, the company’s free cash flow more than doubled YoY to $426.5 million, indicating strong underlying financial performance.

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