Youth-focused video game and metaverse company Roblox is experience a growth spurt. Users over the age of 13 are now a majority of the company’s hundreds of millions of users.
“We’re currently at less than 3% of our TAM in the gaming market space,” executives told investors during the company’s third-quarter 2024 earnings call on Thursday (Oct. 31), highlighting that Roblox is transforming into a true platform rather than a collection of gaming experiences.
Daily active users (DAU) of Roblox’s virtual worlds for the quarter grew 27% to 88.9 million, the platform’s highest growth rate in around two years. The company reported third-quarter bookings, which represents the sale of virtual currency, of $1.13 billion, beating analysts’ estimates.
“If you look at the overall number of payers, we had fantastic growth — peak payers in the history of the company. Conversion to payer is happening at higher rates, I would credit that largely to the creator community and better search and discovery algorithms, putting better content in front of users. We expect the ability to continue to improve that,” said David Baszucki, founder and CEO of Roblox.
In terms of revenue, Roblox generated $919.0 million in Q3, representing a 29% year-over-year increase. CFO Michael Guthrie noted that these results reflect robust growth in all major metrics, including daily active users (DAUs), hours engaged and revenue
The company raised its full-year bookings forecast on the back of these results, to between $4.34 billion and $4.37 billion from its earlier projection of between $4.18 billion and $4.23 billion.
The stock was trading up over 17% Thursday as of reporting.
Read more: Roblox Retools User Engagement and Sees 21% Jump in Active Users
Per Roblox’s call, total hours engaged on the platform increased by 29%, outpacing analyst forecasts and underscoring the effectiveness of the company’s strategy to deepen user engagement. These metrics align with the company’s long-term ambition of sustained 20% annual growth.
“Roblox’s exceptional Q3 results demonstrate the strength of our platform and the effectiveness of our growth strategies. We’re particularly proud of the progress we’ve made in empowering creators, fostering social connections, and expanding our global reach. As we look ahead, we remain committed to building the world’s largest social platform for play, and we’re confident that our continued innovation and focus on safety will drive long-term value for our shareholders and the broader Roblox community,” said Baszucki.
A key factor in Q3’s outsize bookings growth was the launch of Roblox on PlayStation, expanding the platform’s console reach. Roblox’s bookings on console accounted for 8% of bookings in Q3 2024. The remaining 92% of Bookings in Q3 2024 were primarily from non-console platforms, such as desktop and mobile — and those bookings grew 28% over non-console bookings in Q3 2023, executives told investors, showcasing broad-based demand.
The strong results come three weeks after Roblox was the target of a short seller report by Hindenburg Research, which alleged that the gaming platform inflated metrics including user numbers, engagement, and was not a safe platform for children.
See also: Metaverse Companies Struggle With Declining Values, Complexity
In a letter to shareholders, Roblox said, “Our highest priority is to create one of the safest online environments for users, a goal not only core to our founding values but critical to our ability to meet our long-term growth vision. Because our platform was originally created for children and now includes all ages over 5, our policies are purpose-built to be strict.”
Roblox’s management remains optimistic about the platform’s potential. Baszucki underscored Roblox’s ambition to build the world’s largest social platform for play, where innovation and safety drive long-term value for shareholders and users alike. The company’s increased bookings forecast reflects this confidence, as Roblox seeks to sustain high engagement levels and expand its user base globally.
Looking forward, Roblox is targeting continued growth of around 20% annually, supported by its diversified demographic and multi-platform accessibility. This outlook reinforces Roblox’s transition into a broader social and gaming ecosystem, leveraging its popularity among older users and its new platform developments.
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