By Tiyashi Datta and Yamini Kalia
(Reuters) -Roblox Corp on Wednesday topped quarterly bookings estimates on Wednesday, as a wider audience swarmed to the platform for games such as "Adopt Me!" and "Pet Simulator X", pushing the company's shares up nearly 4% in morning trading.
Roblox's results follow a strong showing from videogame publisher Electronic Arts Inc (NASDAQ:EA) and "Call of Duty" maker Activision Blizzard Inc (NASDAQ:ATVI), confirming signs of a sector-wide rebound after a slow 2022.
"April was really strong with the Easter holiday. And June is strong because school is out and it's the start of the summer. And summer is always a big time for the platform as it is for lots of companies," said Chief Financial Officer Michael Guthrie.
Roblox, which is among the world's most popular gaming sites for children, has been constantly investing to expand its user base by doubling down on collaborations with NFL, FIFA and artists such as Elton John and Mariah Carey.
Shares of Roblox were trading at around $38, having declined about 12% before the bell.
"What changed was... as people processed what they had to say in the shareholder letter and on the earnings call, Roblox was very clear that they have a new focus on achieving operating leverage," said Nick McKay, analyst at Wedbush.
However, adjusted loss of 44 cents per share was bigger than analysts' expectation of 40 cents loss per share, according to Refinitiv data.
Roblox said higher expenses due to developer exchange fees, personnel costs and infrastructure were the reason behind the bigger loss.
"We also expect our operating expenses to increase significantly in future periods", the company said, adding it intends to continue to make investments to grow its business and hire more people.
Net bookings for the quarter ended March 31 rose 23% to $773.8 million. Analysts were expecting $765.9 million, according to Refinitiv data.