(Reuters) -Roblox ( RBLX ) raised its forecast for annual bookings on Thursday and crossed 100 million in daily active users on its videogame platform, riding on the success of viral hits such as "Grow a Garden" and sending its shares up 19% before the bell.
Many of the platform's games have become highly popular due to their free-to-play nature and wide availability, drawing millions of users across diverse age groups and demographics.
Average daily active users, a key measure of engagement, grew 41% to 111.8 million in the second quarter, while hours engaged jumped 58% to 27.4 billion.
A large portion of the engagement and bookings growth in the second quarter came from "Grow a Garden", a tycoon-style game which allows players to grow their plots of land by trading seeds and plants.
In June, the game set a world record for the most concurrent players to play a videogame, highlighting Roblox's ( RBLX ) reach across geographies.
The company has been investing in search and discovery features that allow greater visibility for games like "Grow a Garden", with already healthy engagements, the company's newly appointed CFO, Naveen Chopra, told Reuters.
In an uncertain economy, Roblox ( RBLX ) is diversifying its revenue sources beyond gaming and turning the platform into a hub for socializing, commerce and advertising.
Such efforts have excited investors, who have more than doubled the company's shares so far this year, far outperforming rival videogame publishers.
Roblox ( RBLX ) now expects fiscal 2025 bookings of between $5.87 billion and $5.97 billion, compared with its previous forecast of $5.29 billion to $5.36 billion.
It forecast third-quarter bookings between $1.59 billion and $1.64 billion, compared with an estimate of $1.35 billion, according to data compiled by LSEG.
Bookings for the second quarter came in at $1.44 billion, beating market estimates of $1.24 billion.