Roblox Reports 34% Increase in Q3 Bookings

Roblox Corporation reported a strong third quarter in 2024, with bookings rising 34% to $1.13 billion, significantly above analyst estimates. Daily active users increased by 27% to 88.9 million, and engagement levels remained high with users spending over 20 billion hours on the platform. Despite a net loss of $239.3 million, the company raised its fourth-quarter bookings forecast and full-year predictions, reflecting confidence in ongoing platform improvements, including enhanced search algorithms. However, the company faces scrutiny from Hindenburg Research, which alleged inflated user metrics due to counting multiple accounts tied to single users. CFO Mike Guthrie emphasized that recent platform updates and more frequent game releases have driven user engagement. The stock jumped 12% in premarket trading following the positive earnings report.