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Roblox surges 16% after booking boom — is this the comeback investors hoped for?
Roblox surges 16% after booking boom — is this the comeback investors hoped for?

Economic Times

time31-07-2025

  • Business
  • Economic Times

Roblox surges 16% after booking boom — is this the comeback investors hoped for?

Getty Images Roblox stock jumped nearly 20% after the Q2 2025 booking boom, driven by viral games like "Grow a Garden" and record-breaking user engagement worldwide. Roblox's stock jumped 19.5% in premarket trading after it posted strong second-quarter bookings, even though its earnings missed analyst expectations. The company reported an adjusted loss of $0.41 per share, which was worse than analysts' forecast of a $0.37 the loss, bookings reached $1.44 billion, far above estimates of $1.26 billion, and marked a 51% year-over-year jump. Revenue rose to $1.08 billion, showing a 21% increase from the same time last year. CFO Naveen Chopra called the growth "impressive," saying key numbers like Daily Active Users (DAUs), Hours Engaged, Monthly Payers, Revenue, and Bookings all showed the platform's strength and wide reach, according to the report by ALSO READ: CVS Health Stock surges over 5% after stellar Q2 and huge profit upgrade for 2025 Third quarter forecast for bookings skyrocketed to $1.59 billion and $1.64 billion for Roblox, surpassing analyst expectations of $1.34 billion. The forecast for the whole year of 2025 for booking rates reached $5.87 billion and $5.97 billion, which beat earlier estimates predicting $5.29 billion to $5.36 billion, as per the report by Reuters.. A 41% year on year increase was also seen in Daily Active Users (DAUs), which grew to 111.8 million, while Hours Engaged galloped 58% to 27.4 billion in second quarter of 2025. Monthly Unique Payers rose 42% YoY to 23.4 million, showing more people are paying for in-game features. CEO David Baszucki credited the success to viral games on the platform, saying Q2 results were strong across all areas, as stated by One big hit on Roblox was "Grow a Garden," a fun game where players trade seeds and plants to grow their own virtual garden. In June, it broke a world record for having the most people playing at once, showing how popular Roblox is around the world. ALSO READ: Who could be California's next governor after Kamala Harris bows out? These contenders are eyeing top jobRoblox has been improving its search and discovery tools to help more games like "Grow a Garden" get noticed, according to CFO Naveen Chopra. The company is also expanding beyond gaming by becoming a platform for socializing, shopping, and ads, which is helping attract new investors. So far in 2025, Roblox shares have more than doubled, beating many other gaming companies in stock performance. Chief Product Officer Manuel Bronstein will step down on Sept 30, 2025, but will stay on as an advisor until April 2026 to help with the transition, as mentioned by Why did Roblox stock go up in July 2025? Roblox stock jumped because its second-quarter bookings were much higher than expected, showing strong user growth and engagement. Q2. What is Grow a Garden in Roblox and why is it popular? "Grow a Garden" is a Roblox game where users grow and trade plants, and it became a viral hit with a world record for most concurrent players.

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