Roblox shares rocket 20% on earnings beat, strong forecast

Core Insights - Roblox shares surged by up to 20% in extended trading after reporting fourth-quarter results that exceeded consensus estimates [1] - The company expects first-quarter bookings to be between $1.69 billion and $1.74 billion, surpassing Wall Street's expectation of $1.68 billion [1] Financial Performance - Fourth-quarter bookings increased by 63% year-over-year, reaching $2.22 billion, compared to analysts' expectations of $2.05 billion [2][3] - The company reported a net loss of $316 million for the quarter, a nearly 44% increase from the $220 million loss reported the previous year [2] - Average Daily Active Users (DAUs) for the fourth quarter reached 144 million, up 69% year-over-year, exceeding the expected 138 million DAUs [2] Future Guidance - Roblox announced it will discontinue annual guidance starting in 2027 due to "inherent variability" in its business, opting instead to provide quarterly guidance [3] - The company reported losses per share of 45 cents, which was better than the 48 cents expected by analysts [3] Legal Challenges - Roblox is currently facing multiple lawsuits alleging that its platform enables predators to sexually exploit and abuse underage victims [3]