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Roblox Stock Jumps On First-Quarter Beat-And-Raise Report
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PATRICK SEITZUpdated 08:32 AM ET 05/01/2025

https://www.investors.com/news/technology/roblox-stock-rblx-q1-2025-earnings/?src=A00220

Online gaming and social platform Roblox (RBLX) on Thursday handily beat Wall Street's targets for the first quarter and guided higher for the current period. Roblox stock jumped in early trading.

The San Mateo, Calif.-based company lost 32 cents a share on bookings of $1.21 billion in the March quarter. Analysts polled by FactSet had expected Roblox to lose 40 cents a share on bookings of $1.14 billion. In the year-earlier period, it lost 43 cents a share on bookings of $924 million.

Roblox reported 97.8 million average daily active users, up 26% year over year, in the first quarter. Analysts had expected 93.1 million.

Based on the midpoint of its guidance, Roblox expects bookings in the second quarter of $1.18 billion, vs. the consensus estimate of $1.17 billion.

Roblox also raised its full-year guidance. It now expects 2025 bookings of $5.285 billion to $5.36 billion. The midpoint of $5.32 billion would translate to year-over-year growth of 22%. Analysts were modeling for bookings of $5.27 billion.

Roblox has been investing heavily to build out its youth-centric version of the metaverse, a 3D virtual space for people to socialize and play games. Its online experiences range from gaming and hangouts to concerts, sports, fashion shows, education and entertainment.

Roblox Stock Approaching Buy Point
"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," Chief Executive David Baszucki said in a news release. "In addition to our focus on raw performance and quality, investments in the virtual economy and search and discovery are driving growth in platform monetization, bookings, and creator earnings."

In premarket trading on the stock market today, Roblox stock advanced more than 8% to 72.99.

Roblox stock has formed a cup base with a buy point of 75.74, according to IBD MarketSurge charts.

Also, Roblox stock is on the IBD 50 stock list.