Roblox shares soar 20% as bookings guidance tops estimates

Investing.com - Roblox Corporation (NYSE: RBLX) shares surged 20% after the gaming platform delivered stronger-than-expected fourth quarter results and issued full-year bookings guidance that exceeded analyst estimates.

The company reported fourth quarter bookings of $2.22 billion, comfortably beating the analyst consensus of $2.09 billion and representing a 63% increase YoY. Revenue reached $1.42 billion, up 43% YoY but slightly below the $1.44 billion analyst estimate. Roblox posted a loss of $0.45 per share, narrower than the expected loss of $0.48 per share.

User engagement metrics showed robust growth, with daily active users (DAUs) reaching 144 million, up 69% YoY and ahead of the 140.39 million analyst estimate. Hours engaged totaled 35 billion, an 88% increase YoY and above the expected 32.97 billion.

"Fiscal 2025 was a banner year for Roblox, with results significantly exceeding both our annual guidance and our long-term targets," said David Baszucki, CEO of Roblox. "We reached new heights across core metrics including average daily active users, Hours Engaged, revenue and bookings."

Looking ahead, Roblox provided an optimistic outlook for fiscal 2026, forecasting full-year bookings between $8.28 billion and $8.55 billion, surpassing the analyst consensus of $8.05 billion. Revenue guidance was set at $6.02 billion to $6.29 billion, compared to the $6.19 billion estimate.

For the first quarter, the company expects bookings of $1.69 billion to $1.74 billion, in line with the $1.7 billion analyst estimate, while revenue is projected between $1.37 billion and $1.42 billion against a $1.41 billion consensus.

The company generated impressive cash flow in the fourth quarter, with operating cash flow of $607 million, up 229% YoY, and free cash flow of $307 million, a 155% increase YoY and significantly above the $159.6 million analyst estimate.

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