Roblox stock surged 16% after beating revenue expectations in Q2, reaching $1.44 billion in net bookings, a 51% increase. The gaming platform saw strong user growth, with 111.8 million daily active users and 27.4 billion hours engaged, exceeding analyst expectations.

CEO David Baszucki highlighted strategic investments driving growth and aims to capture 10% of the global gaming content market. Roblox raised Q3 booking guidance to $1.59 billion to $1.64 billion, surpassing FactSet’s estimate of $1.42 billion.

Despite a net loss of $279.38 million, Roblox introduced new age verification tools to enhance safety for young users and limit access to mature content. Chief Safety Officer Matt Kaufman emphasized the importance of providing suitable content for different age groups to retain users.

Read more at CNBC: Roblox stock soars 16% after revenue beat, strong user growth