Roblox Shares Gain On Q2 Booking, Revenue Growth, But Wider-than Expected Loss; Revises FY25 View

(RTTNews) - Shares of Roblox Corp. (RBLX) were surging around 13 percent in the morning trading after the video game developer on Thursday reported higher revenues and significantly higher bookings in its second quarter. Meanwhile, the firm posted wider -than-expected loss in the quarter, and revised fiscal 2025 outlook to expect further loss.

For the third quarter, the company projects consolidated net loss between $396 million and $366 million, and adjusted EBITDA between $58 million and $28 million.

Revenue are expected between $1.11 billion and $1.16 billion. Bookings would be between $1.59 billion and $1.64 billion.

The Wall Street analysts on average expect the company to report revenues of $1.40 billion for the next quarter. Analysts' estimates typically exclude special items.

For fiscal 2025, the company now expects consolidated net loss between $1.26 billion and $1.20 billion and adjusted EBITDA between a loss of $5 million and profit of $55 million.

The company previously expected Consolidated net loss between $1.04 billion and $977 million, and annual EBITDA in the range of $205 million to $265 million.

Further, revenue is now expected between $4.39 billion and $4.49 billion, compared to previously expected $4.29 billion to $4.365 billion.

Analysts forecast the firm to post revenue of $5.59 billion for the year.

Bookings would be between $5.87 billion and $5.97 billion, compared to previous view of $5.285 billion and $5.360 billion.

In the second quarter, Roblox's net loss widened to $278.38 million, or $0.41 per share from last year's loss of $205.88 million or $0.32 per share.

Analysts on average had expected the company to report loss of $0.36 per share.

The company's revenue for the period rose 21.3 percent to $1.08 billion from $0.89 billion last year.

Bookings were $1.44 billion, up 51 percent year-over-year on a reported basis, and up 49 percent on a constant currency basis.

In the morning trading, the shares were trading at $141.50, up 13.25 percent.

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