Investing.com -- Roblox Corporation (NYSE: RBLX) shares are down around 3% premarket after initially rising following the gaming platform’s report of third-quarter bookings that significantly exceeded analyst expectations, driven by strong user growth and increased engagement across its platform.

The company reported bookings of $1.92 billion for the third quarter, representing a 70% year-over-year increase and handily beating the analyst consensus estimate of $1.68 billion. Roblox posted a quarterly loss of -$0.37 per share, which was better than the -$0.49 per share analysts had expected.

The strong performance was fueled by user growth, with daily active users (DAUs) increasing 70% year-over-year to 151.5 million. Hours engaged on the platform surged 91% to 39.6 billion, while monthly unique payers grew 88% to 35.8 million. Revenue for the quarter rose 48% year-over-year to $1.36 billion.

"Our third-quarter results demonstrate the tremendous progress we’ve made toward our goal of capturing 10% of the global gaming market," said David Baszucki, founder and CEO of Roblox. "Our platform and creator ecosystem are healthier than ever before, driven by broad-based strength, new viral hits, and our strategic investments in creator economics."

Roblox raised its full-year 2025 bookings guidance to $6.57-6.62 billion, significantly higher than its previous guidance of $5.87-5.97 billion and above the analyst consensus of $6.16 billion. For the fourth quarter, the company expects bookings between $2.00-2.05 billion, representing year-over-year growth of 47-51%.

The company highlighted the success of viral experiences like "Steal a Brainrot," which recently reached a record of over 25 million concurrent players. Engagement in experiences outside the top 10 grew 58% year-over-year, demonstrating the platform’s broadening content diversity.

Roblox also reported strong cash generation, with operating cash flow increasing 121% year-over-year to $546.2 million and free cash flow rising 103% to $442.6 million in the third quarter.