A dose of high fashionOnline gaming platform Roblox wants only the best for its customers, so the newly public company has kitted out the game with a brand new Gucci secret garden. Everyone loves a dose of high fashion, and prices rally over 8%. Fancy.
Gamers are getting a few weeks of high-flying fashion life as Gucci and Roblox launch a cool new collab. The gaming platform is now home to a Gucci-inspired virtual garden experience, which will take place alongside the real-life version in Florence in celebration of the fashion house’s 100th anniversary. When you enter the garden, you get a genderless, ageless mannequin to explore with, and Roblox has introduced a host of new accessories to get excited about.
said Roblox exec Christina Wootton.
Looks like the market agrees. Vogue.
Roblox levels upRoblox wows in its first post-debut earnings release, reporting revenue growth of 140% and pushing prices up a level with a 21% pre-results jump.
The global gaming platform beloved by teenagers everywhere made a supersonic debut only two months ago, soaring 54% on its first day of trading to close at $69.50 with a market cap of around $38 billion. It’s had a rocky ride since then, with its share price bouncing up and down like a basketball, but its latest earnings knocked it out of the park. Guess there’s not been much else to do recently.
The results saw revenues up 140% to $387 million and bookings (a form of adjusted revenue that analysts like to watch in gaming firms) up by 161% to $652.3 million, solidly outpacing initial forecasts of $573 million. Daily Active Users (DAUs) grew 70% from the same period the year before to 42.1 million, with players spending a mindblowing 9.7 billion hours on the platform, up by a massive 98% from March last year and logging over 230 hours per user. All that gaming led to an average booking per DAU of $15.48, up 46% from the same period the year before – note that because a lot of the platform’s content is free, DAU growth is important for Roblox to prove to investors how it monetizes its users.
The firm posted losses of $134.2 million for Q1 and a loss per share of $0.46, which missed expectations of earnings per share of $0.13, but investors still seemed happy with the results – the stock jumped over 21% on Tuesday in anticipation, and rose a further 5% in after-hours trading on Wednesday following the results. Looks like the pandemic really played into their hands.
said CEO David Baszucki.
The platform, designated “crack for kids”, is already expecting a bumper second quarter and expects to log over $1.5 billion for the full year, so this could be a fun game to get in on. Overall, Roblox is up by about 17% since its $64.50 debut on March 10, closing on May 12 at $75.53. By comparison, the S&P 500 (SPX) is up 4.4% over the same period.
said Roblox CFO Michael Guthrie.