Roblox Corporation (NYSE: RBLX) has been on a rollercoaster ride in terms of its stock market performance in previous months, dropping to as low as $25 per share in September after hitting $45 earlier in the year.
However, the stock witnessed a noteworthy recovery in the more recent period and has just received an additional boost.
Notably, the video game developer’s stock soared 19% at the market open on Wednesday, November 8, after it unveiled Q3 2023 results that exceeded analysts’ expectations on top and bottom lines. The stock was sitting at $41.50 at the time of writing.
With today’s upswing, RBLX shares pierced through the 200-day moving average (MA) located at $36.73, which now acts as a support level.
On the upside, the stock faces resistance lines at around $43 and $45.2, as well as at $47.68.
Roblox’s Q3 2023 earnings
Roblox, the maker of the namesake online game platform and game creation system, reported a loss per share of 45 cents for the third quarter, narrower than the estimated loss per share of 51 cents per share.
Adjusted revenue, or calls bookings, stood at $839 million in the period, also above Wall Street’s projection of $830 million, and up 20% year-over-year.
The company’s calls bookings is a category that includes sales generated during the quarter and deferred revenue.
The number of average daily active users (DAUs) jumped by 20% from a year earlier to 70.2 million in the third quarter. Similarly, gamers spent over 16 billion hours in Roblox during the three-month period, also 20% higher than in the year-ago quarter.
Roblox’s Q3 net loss was $277.2 million, down from $297.8 million in the same period last year.
Strong growth in Europe and East Asia
In its November 8 letter to shareholders, Roblox said revenue growth was especially evident in East Asia and Western Europe. However, the US and Canada remain the primary drivers of bookings growth.
“We delivered another strong quarter of growth while executing against our financial plan. Bookings growth was particularly strong in Western Europe and East Asia. The US and Canada still accounted for the majority of bookings growth in dollar terms among all regions.”
– said Roblox’s CFO Michael Guthrie.
Meanwhile, the video game developer said it slowed down its spending growth across major expense categories, leading to “market improvement in margins compared both to Q2 2023 and Q3 2022.”
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Source: https://finbold.com/roblox-stock-jumps-19-after-robust-q3-report/