Roblox (RBLX) is one of the best performing stocks for the day as its December 2022 metrics report shows an increase in bookings. These metric reports are key performance metrics for the company and the stock. The company releases these metrics every month in contrast to the common corporate update of releasing data once per quarter.

December daily active users (DAU) were up 18% year over year and hours engaged on the platform was up 21%. Estimated bookings were up by 17% to 20%.

Roblox had 61.5 million DAUs in December, which is up 8% from November and also a record number for Roblox.

The markets were excited about the strong bookings growth. For Roblox, this means using the in-game currency which users must buy. This results in bookings and spending in-game currency means revenue for Roblox.

With strong booking growth, the markets are expecting revenue growth. For comparison, Roblox’s bookings were only up 10% year over year in Q3 2022. But are strong December numbers due to the holiday seasons as kids receive gift cards of the in-game currency as gifts?

Here is a summary of the December 2022 metrics report:

• Roblox’s Daily active users (DAUs) grew 18% year-on-year to 61.5 million.
• The global platform’s hours engaged increased 21% Y/Y to 4.7 billion.

• Roblox’s estimated revenue was $189 million – $199 million, down 1% – 6% Y/Y due to foreign currency fluctuations.
• The company’s expected bookings were $430 million – $439 million, up 17% – 20% Y/Y.
• Roblox’s estimated average bookings per daily active user (ABPDAU) were $6.99 – $7.14, representing a Y/Y change of -1% – +1%.
• The company plans to cease publishing monthly metrics after the expected release of its March 2023 monthly metrics in April 2023.

Again, the markets are excited about the $430-$439 bookings for the month of December 2022.

Roblox stock continues to rally. RBLX is already up 30% year to date! At time of writing, the stock is up over 13% for the day.

The stock began 2023 by bouncing from a major support level at $25. We headed higher until we met resistance, or price ceiling, at the $35 zone.

As you can see from the chart, Roblox has sliced through this resistance zone with ease. Increased December bookings was the catalyst and the stock has gapped up above resistance. This is a very bullish breakout.

The key is to see how the daily candle closes by the end of today. A nice green body would be ideal, but as long as the stock closes above $35, bulls have reason to be excited. Going forward, we could see a pullback which would present buyers with another opportunity to enter long. As long as the price remains above $35, the breakout remains intact and traders should expect another wave higher.

I see some resistance ahead around $45, and we should be watching the major psychological zone at $50. I am looking at a zone just slightly above $50 at around $51. It is the resistance Roblox stock has had since April 2022. More importantly, looking at the chart from a broader scale, you will see that Roblox is just in a large range after a downtrend. A break above $51 would trigger a major range breakout pattern and a new major uptrend.