If you haven’t noticed by now, video game stocks aren’t enjoying their most prolific era of growth right now as the COVID-19 recovery continues.
Roblox is no exception, missing analyst estimates for Q2 but making an important acquisition along the way.
How did Roblox do in Q2?
If these results had come in a year earlier, investors would be whooping for joy. Unfortunately, that’s not how the investing mindset works right now. If you’re not absolutely demolishing expectations, it’s not good enough.
- Revenue increased 127% over Q2 2020 to $454.1 million
- Net cash provided by operating activities increased 64% over Q2 2020 to $191.2 million
- Bookings increased 35% over Q2 2020 to $665.5 million
- Free Cash Flow increased more than 70% over Q2 2020 to $168.0 million
- Average Daily Active Users (DAUs) were 43.2 million, up 29% YoY.
- Hours Engaged were 9.7 billion, an increase of 13% YoY.
- 29% growth from users over the age of 13 YoY.
But let’s look at the other news: Roblox has acquired Guilded, Inc., a privately-held company focused on building a platform to connect gaming communities. As one of the foremost social gaming platforms on Earth right now, the move makes perfect sense for Roblox. Gilded provides voice and chat options for gamers, whilst also allowing users to organize communities around events and calendars, with plenty of specific functionality designed around ensuring that tournaments happened seamlessly.
This represents an opportunity for Roblox to bring its user base deeper inside its own suite of products, creating a social infrastructure that keeps users engaged. The applications also go beyond simply gaming, with Roblox recently partnering up with Sony to offer licensed virtual ‘live’ concerts and more.
The famed ‘metaverse’ is swiftly becoming more and more a reality every day.
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Content Manager at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.