Online gaming and social platform Roblox on Thursday handily beat Wall Street's targets for the first quarter and guided higher for the current period. Roblox stock jumped after the report.
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.
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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."
On the stock market today, Roblox stock advanced 2.9% to close at 69. Earlier in the session, it rose as much as 6.8% to 71.60.
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.
RBLX Stock Scores Three Price Hikes
At least three Wall Street firms raised their price targets on Roblox stock after the quarterly report.
Benchmark analyst Mike Hickey reiterated his buy rating on RBLX stock and upped his price target to 77 from 71.
"Roblox is scaling a highly engaged, creator-driven platform with increasing monetization efficiency and broadening ecosystem economics," Hickey said in a client note.
Wedbush Securities analyst Michael Pachter kept his outperform rating on Roblox stock and hiked his price target to 91 from 83.
"We see Roblox as the most compelling growth opportunity in the video game sector given its large and expanding user base, its slate of new and upcoming products, and the potential to unlock additional profit drivers within its business," Pachter said in a report.
BMO Capital Markets analyst Brian Pitz maintained his outperform rating on Roblox and increased his price target to 82 from 75.
"RBLX remains early in its platform expansion with multiple levers, such as advertising, to drive monetization over time," Pitz said in a client note.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
