Roblox Q3 Revenue Rises by 38%, Daily Active Users Hit 70M; Shares Surge Amid In-Game Spending Increase

Roblox's Q3 financial report shows a net loss of $277.2 million, reducing losses by $20 million from the previous quarter, with in-game spending and user engagement driving growth, especially in wealthy markets like Western Europe and East Asia.

Roblox reported a revenue of $713.2 million for Q3 2023, marking a 38% increase year over year. Shares surged following the report, with a nearly 15% increase.
In-game spending was a major contributor to the company's revenue, with elevated user engagement leading to bookings of $839.5 million, a 20% increase from the same period last year.
The company improved its overall margins by controlling spending across major expense categories and is set to complete its Ashburn-based data center, which will further decrease capital expenditures.
User engagement surged to over 70 million daily active users, up 20% from Q3 last year, largely driven by increased activity during academic summer breaks. Monthly unique payers also grew at a rate of 14% to reach 14.7 million.
Roblox's net loss for the quarter is down by nearly $20 million from the previous quarter, indicating a reduced loss of $277.2 million.