Roblox (NYSE: RBLX) surged in early Wednesday trading after the company's latest quarterly earnings release impressed investors.

Shares of the gaming platform company jumped more than 18% on the back of the report, trading at levels last seen in July.

The company reported a Q3 loss per share of $0.45, $0.04 better than the analyst estimate of a loss of $0.49 per share. Bookings for the quarter came in at $839.5 million, up 20% YoY and above the consensus estimate of $829.86 million.

Revenue was $713.2 million, up 38% year-over-year.

Furthermore, Roblox revealed that Average Daily Active Users (DAUs) came in at 70.2 million, up 20% year-over-year, while average monthly unique payers were 14.7 million, up 14% year-over-year, and average bookings per monthly unique payer were $19.02, up 5% year-over-year. The number of hours engaged was 16 billion, rising 20% compared to last year, while average bookings per DAU was $11.96, flat year-over-year.

The company's bookings growth was robust in Western Europe and East Asia, although the US and Canada accounted for the majority of bookings growth in dollar terms among all regions.

Roblox slowed spending growth across most of its major expense categories and, as a result, showed improvement in margins compared both to Q2 2023 and Q3 2022.

“Our strong third-quarter results reflect our continued platform innovation and growth across all age groups and geographies," said David Baszucki, founder and CEO of Roblox. "We are executing against our key priorities to enable deeper forms of immersion, communication, and Avatar expression on the platform while investing in artificial intelligence, brands and advertising to drive future growth."

By Sam Boughedda