What happened

Shares of Roblox (RBLX 0.07%) soared by 42% on Tuesday after the popular video game development company delivered strong third-quarter numbers. 

So what

Roblox's revenue surged by 102% year over year to $509.3 million. Meanwhile, the company's bookings -- a key metric that factors in deferred revenue and represents the dollar amount of virtual currency that users bought during the quarter -- jumped by 28% to $637.8 million.

This heady growth was driven by a 31% rise in average daily active users (DAUs) to 47.3 million, and a 28% increase in hours engaged to 11.2 billion.

"Engagement is our north star," CEO David Baszucki said in a press release. "We're very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox."

Kids are playing video games.

Image source: Getty Images.

Still, Roblox is not yet profitable. Its net loss for the quarter came in at $74 million. However, the fast-growing company is already generating positive free cash flow, to the tune of $170.6 million.

Now what 

Roblox's results were particularly impressive in light of the easing of coronavirus-related restrictions, which has largely allowed children to return to school and re-engage in more outdoor and group activities. "Growth in all of our core metrics -- DAUs, hours, and bookings -- displayed strong year-over-year growth despite lapping Covid-impacted periods and back-to-school seasonality," Chief Financial Officer Michael Guthrie said.

If these positive trends continue -- which appears likely -- Roblox's shareholders could be in store for even more gains ahead.

"It's clear that even as users revert back to pre-pandemic routines and behaviors, Roblox remains an important part of their day," the company said in a letter to investors.