OREANDA-NEWS. Shares in gaming platform Roblox soared 36.4% in the post-market on November 8, peaking at $105 a share. The stock ended the extended session on the NYSE up 28%.

The company started moving sharply upwards after the release of its third quarter 2021 results. Roblox's revenue for the three months was up 102% year-on-year to $509.3m, compared to the same quarter last year.

Orders, including deferred revenue, reached $637.8m, up 28% year-on-year for 2020. According to the consensus forecast of Refinitiv service, on average analysts had expected growth to $636.5 million.

Under some accounting rules, revenue from games with online components - such as spending on virtual weapons - is deferred for as long as companies believe players will use the items, usually six to nine months.

Roblox increased its net loss to $74m, up from $48.6m a year earlier. Investors were not upset, as analysts had expected the loss to be $86.2 million. On a per-share basis, the loss was $0.13.

The number of daily active users rose 31% to 47.3 million, up from 43.2 million a quarter earlier. Because Roblox games are primarily aimed at children, analysts expected that once schoolchildren returned to face-to-face learning, they would spend less time playing games. However, that did not happen.

The company also reported that the technical glitch, which occurred between October 28 and 31, caused the company to lose about $25 million in orders. Roblox has promised that it will soon release a detailed report on the causes of the glitch and the measures that the company will take to ensure that the incident does not happen again in the future.

Roblox is not forecasting quarterly results. According to Refinitiv's consensus forecast, the company will report fourth quarter revenue of $722.4 million and a net loss of $79.4 million, or $0.14 per share.