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Roblox misses at the top and bottom, shares dip 12%

Roblox reported results on Tuesday that missed analyst estimates at the top and bottom lines.

Here’s the way the company did:

  • Loss per share: 30 cents vs. 21 cents expected, in accordance with a survey of analysts polled by Refinitiv.
  • Revenue: $639.9 million vs. $644.4 million expected, in accordance with Refinitiv.

Shares fell a lot more than 12% in after-hours trading.

The revenue figure is what Roblox calls bookings, such as sales recognized through the quarter and deferred revenue. Bookings declined by 4% year over year. The business generates revenue from sales of its virtual currency called Robux, which players use to decorate their avatars and purchase other premium features in the games.

Roblox reported 52.2 million average daily active users, in regards to a million shy of the StreetAccount consensus. That figure is up from 21% per year earlier, but down from the 54.1 million daily active users it reported in the initial quarter. Users spent a lot more than 11 billion hours engaged in Roblox through the second quarter.

Roblox said average bookings per daily active user was $12.25, down 21% year over year.

The business also offered a peek in to the third quarter. It said July daily active users hit an archive most of 58.5 million, up 26% year over year. And bookings for the month fell between $243 million and $247 million, up 8% to 10% from July 2021.

The business saw bookings swell a lot more than 200%through the pandemic when kids were spending additional time on the screens while stuck in the home. The stock was blazing hot in 2021, after Roblox’sdirect listingin March. Its market cap neared $80 billion before peaking in November 2021. Shares are down a lot more than 60% since their highs.

Chief Business Officer Craig Donato told CNBC’s Steve Kovach that Roblox is bullish on the near future due to its investments in its employees, server capacity and global data centers.

“We’re quite definitely in investment mode,” Donato said, “and that is likely to put a small amount of drag on earnings, but they are investments which are the proper investments for all of us to make that may pay back in the three-to-five-year timeframe.”

Executives will discuss the outcomes with analysts on a conference call starting at 8: 30 a.m. ET on Wednesday.

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