This picture taken on February 1, 2019 shows the online gaming service Roblox displayed on a tablet screen in Paris. LIONEL BONAVENTURE/AFP via Getty Images
Roblox has raised its annual bookings forecast, attributing the increase to a surge in user engagement during the summer holidays and the introduction of games with a more mature content, as reported by Reuters.
While it's known as popular among younger audiences, Roblox is actively encouraging developers to create content that appeals to older users. This strategic shift has helped attract an audience with higher spending power, leading to a 30% increase in hours engaged by players above the age of 13 in the April-to-June quarter.
The company now expects annual bookings to range between $4.18 billion and $4.23 billion, up from the previous forecast of $4 billion to $4.10 billion. At the same time, shares of Roblox rose 3.5% in premarket trading following the announcement.
Chief Financial Officer Michael Guthrie emphasized that the diverse content created by the developer community is key to attracting and retaining older users.
Unlike traditional video game companies, Roblox relies heavily on user-generated content and generates most of its revenue from the sale of its in-game currency, "Robux." This model, similar to that of Epic Games' Fortnite, has proven resilient even as consumers cut back on spending. The company has forecast third-quarter bookings to be between $1 billion and $1.03 billion, exceeding analysts' estimates of $971.2 million.
Roblox's positive outlook comes after a challenging period; in May, VCPost shared that the company reported disappointing results that led to drop in its stock price.
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