Third-quarter bookings came in at $839.5 million, ahead of the expected $822.2 million. Revenue also topped analyst expectations, coming in at $713.2 million. Analysts were looking for $686 million.
Roblox reported a loss per share of $0.45 for the third quarter, while free cash flow of $59.5 million significantly outperformed the expected $17.3 million.
“Our strong third quarter results reflect our continued platform innovation and growth across all age groups and geographies. We are executing against our key priorities to enable deeper forms of immersion, communication and Avatar expression on the platform, while investing in artificial intelligence, brands and advertising, to drive future growth,” said David Baszucki, founder and CEO of Roblox.
The stock is reacting positively as the latest earnings report marked improvement in margins compared both to Q2 2023 and Q3 2022.
"We also slowed spending growth across most of our major expense categories,” added Michael Guthrie, chief financial officer of Roblox.