Roblox CEO reveals plan to boost profits via simulations

Charting a path toward domination of the digital universe. Roblox is fresh off a better-than-expected first quarter as it gained traction in new gaming genres such as racing and sports amongst children over the age of 13. Sales, daily active users, and bookings all increased by double-digit percentages. Sales clocked in at $1.03 billion, up 29% from the prior year. Bookings—a measure of in-game currency sales—gained 31% to $1.2 billion. Average daily users improved 26% to 97.8 million. Total hours of engagement on the platform increased 30% to 21.7 billion. Roblox (RBLX) had a really strong Q1, with revenue, bookings, and daily active users all up by double digits compared to the same quarter last year. For the full year, Roblox sees revenue of $4.3 billion to $4.365 billion, up about 19.5% year over year. Adjusted operating profits are forecast between $205 million and $265 million. At the midpoint, it would equate to adjusted operating profit growth of about 28%. The strong start to the year has pushed Roblox shares to a 52-week high. Shares are up 165% over the past year. So what’s next for Roblox? Yahoo Finance Executive Editor Brian Sozzi talks on the Opening Bid podcast with Roblox founder and CEO Dave Baszucki. Baszucki shares his plans to simulate reality at scale, improve a fledgling advertising business, and take more market share away from traditional video games. He also pushes back on the notion that Roblox isn’t safe for children.

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