Roblox shares surge 16 percent after booking boom sparks comeback hopes
TOI World Desk | TIMESOFINDIA.COM | Jul 31, 2025, 22:59 IST
( Image credit : TIL Creatives )
Highlight of the story: Roblox saw its stock surge after a strong second quarter. Bookings rose significantly, exceeding expectations. Daily active users and engagement hours also increased. A viral game, Grow a Garden, contributed to the success. The company is expanding beyond gaming. Roblox forecasts strong bookings for the next quarter and the full year. Shares have more than doubled this year.
Roblox’s stock jumped nearly 20 percent in early trading following a blockbuster second quarter that exceeded expectations on multiple fronts. Although the company posted an adjusted loss that was slightly worse than analyst forecasts, its bookings—a key metric representing future revenue—soared 51 percent year over year to $1.44 billion, significantly above estimates. Revenue also grew 21 percent to $1.08 billion, signaling strong growth despite ongoing challenges in the gaming industry.
Chief Financial Officer Naveen Chopra described the growth as “impressive,” highlighting gains in daily active users, hours spent on the platform, monthly payers, and overall revenue. Daily active users rose 41 percent year over year to reach 111.8 million, while total hours engaged jumped 58 percent to 27.4 billion in the second quarter. Monthly unique payers, an important indicator of monetization, increased 42 percent to 23.4 million. These figures reflect a robust and expanding user base that is spending more time and money on the platform.
One standout contributor to Roblox’s resurgence was the viral game “Grow a Garden,” which allows players to trade seeds and cultivate virtual plants. The game broke a world record in June for the most concurrent players, underscoring Roblox’s growing popularity worldwide. The company has also enhanced its search and discovery tools to promote hits like “Grow a Garden,” while expanding its platform beyond gaming to include social features, shopping, and advertising opportunities. These initiatives have helped attract a broader audience and new investors.
Roblox’s forecast for future bookings is equally optimistic, with the company projecting third-quarter bookings between $1.59 billion and $1.64 billion—well above analyst expectations of $1.34 billion. The full-year 2025 booking forecast has also been raised to between $5.87 billion and $5.97 billion, beating earlier estimates. This outlook reflects confidence in continued user engagement and monetization growth as Roblox solidifies its position as more than just a gaming platform.
While Chief Product Officer Manuel Bronstein will step down at the end of September 2025, he will remain as an advisor through April 2026 to help with the transition. Meanwhile, Roblox shares have more than doubled in value so far this year, outperforming many peers in the gaming sector.
Roblox’s strong second-quarter performance marks a notable comeback for the company, driven by viral content, increasing user engagement, and strategic platform diversification. Investors appear optimistic that Roblox can sustain this momentum well into the future.
Chief Financial Officer Naveen Chopra described the growth as “impressive,” highlighting gains in daily active users, hours spent on the platform, monthly payers, and overall revenue. Daily active users rose 41 percent year over year to reach 111.8 million, while total hours engaged jumped 58 percent to 27.4 billion in the second quarter. Monthly unique payers, an important indicator of monetization, increased 42 percent to 23.4 million. These figures reflect a robust and expanding user base that is spending more time and money on the platform.
One standout contributor to Roblox’s resurgence was the viral game “Grow a Garden,” which allows players to trade seeds and cultivate virtual plants. The game broke a world record in June for the most concurrent players, underscoring Roblox’s growing popularity worldwide. The company has also enhanced its search and discovery tools to promote hits like “Grow a Garden,” while expanding its platform beyond gaming to include social features, shopping, and advertising opportunities. These initiatives have helped attract a broader audience and new investors.
Roblox’s forecast for future bookings is equally optimistic, with the company projecting third-quarter bookings between $1.59 billion and $1.64 billion—well above analyst expectations of $1.34 billion. The full-year 2025 booking forecast has also been raised to between $5.87 billion and $5.97 billion, beating earlier estimates. This outlook reflects confidence in continued user engagement and monetization growth as Roblox solidifies its position as more than just a gaming platform.
While Chief Product Officer Manuel Bronstein will step down at the end of September 2025, he will remain as an advisor through April 2026 to help with the transition. Meanwhile, Roblox shares have more than doubled in value so far this year, outperforming many peers in the gaming sector.
Roblox’s strong second-quarter performance marks a notable comeback for the company, driven by viral content, increasing user engagement, and strategic platform diversification. Investors appear optimistic that Roblox can sustain this momentum well into the future.