Roblox shares spike by 16% as video game platform lifts bookings guidance

Investing.com -- Shares in Roblox (NYSE:RBLX ) surged by more than 16% in early US trading on Thursday after the video game platform lifted its guidance for full-year bookings.

San Mateo, California-based Roblox said it now expects bookings to be between $4.34 billion to $4.37 billion in its 2024 fiscal year, up from its prior guidance of $4.18 billion to $4.23 billion. Bloomberg consensus estimates had seen the figure at $4.22 billion.

The updated figures come despite recent concerns over safety on the gaming service, which is popular among young children. In August, Turkey blocked access to Roblox, with the country's justice minister citing concerns that its content could lead to child abuse.

Meanwhile, earlier this month, Hindenburg Research disclosed a short position in the company, claiming that the firm was using inflated user numbers and engagement metrics and was unsafe for children. Roblox has denied the allegations.

Roblox, for its part, said ensuring user safety was at the core of its operations.

In a statement on Thursday, CEO David Baszucki said the group, which relies heavily on user-generated content, retains a "focus on safety" that will help it drive "long-term value for our shareholders and the broader Roblox community."

Third-quarter revenues topped analyst estimates, as Roblox's free-to-play model helped enhance customer spending despite a slowdown in overall gaming activity. The firm has been pushing to increase its offerings for older audiences as well in a bid to expand its base of players.

Daily active users -- a major measure of engagement -- rose by 27% to 88.9 million. It was the largest spike in about two years.

Third quarter bookings, which help gauge virtual currency sales, came in at $1.13 billion, ahead of estimates of $1.02 billion.

Source: Investing.com