- Roblox shares finished at their strongest price in more than two months on Tuesday.
- The 12% rally was sparked by the December bookings report from the online games platform.
- Bookings, the company’s way of keeping tabs on its Robux currency, rose by up to 20% last month.
Roblox shares surged to their highest in two months on Tuesday after an upbeat monthly metrics update, but such updates will be coming to an end from the online gaming platform.
Tuesday’s rally was set off after the company, whose platform hosts user-created games, said daily active users last month increased by 18% year over year to 61.5 million. The user count built on a 15% increase posted for November.
Also according to the December 2022 update, estimated bookings were up 17% to 20% from a year earlier to a range of $430 million and $439 million. Bookings are Roblox’s way of monitoring revenue from its Robux currency that players spend on accessories, clothing, and other items to upgrade their experience on the platform.
Hours engaged also rose last month, by 21% to 4.7 billion from the same period a year ago. More time spent on the platform and bookings growth may bode well for the company’s fourth-quarter earnings report due on February 13.
Roblox on Tuesday estimated December revenue between $189 million and $199 million, a decline of between 1% to 6% year-over-year. Dollar strength may have reduced revenue by about 1% from a year ago, Roblox said.
The company also said it will stop publishing monthly metrics, with the last report due in April for March’s performance. After that, key metrics will be published on a quarterly basis.
“While we think that has provided incremental information to investors regarding the seasonality of the business, we have decided to cease providing monthly metrics to align our reporting cadence with our value of taking the long view,” it said.
Roblox stock sank by 72% in 2022 as tech and consumer discretionary shares were hit by worries about higher interest rates and the impact of high inflation and recession concerns on consumer spending.