scorecard
  1. Home
  2. stock market
  3. news
  4. Roblox drops after gaming platform misses earnings expectations for the 2nd quarter even as user growth accelerates

Roblox drops after gaming platform misses earnings expectations for the 2nd quarter even as user growth accelerates

Carla Mozée   

Roblox drops after gaming platform misses earnings expectations for the 2nd quarter even as user growth accelerates
  • Roblox shares fell Tuesday after the gaming platform missed second-quarter earnings expectations.
  • Bookings rose by 35% to $665.5 million, short of an estimated $683.3 million.
  • Average daily users increased by 29% to 43.2 million.

Roblox shares dropped Tuesday after the company, whose site features popular games such as "Jailbreak," posted second-quarter financial results that fell short of expectations and suggested an impact from COVID vaccinations and easing restrictions on outdoor activities.

Bookings rose 35% to $665.5 million from a year ago but were below an estimated $683.3 million, according to Bloomberg. Analysts watch bookings as users purchase the virtual currency Robux that can be spent over time on in-game items such as clothing and accessories for avatars. The pace of bookings slowed compared with the first quarter when there was 161% increase to $652.3 million from a year earlier.

Roblox shares fell 6.7% to $74.21. The company went public in March and its stock had gained about 14% through Monday.

Roblox said average bookings per daily average user of $15.41 marked a "slight increase year over year". In the first quarter, that metric rose 46% year over year to $15.48.

Average daily active users climbed by 29% to 43.2 million. In the first quarter, that metric increased by 79% year over year. In July, Roblox said it saw growth of 28% to 46.6 million from the same period a year earlier.

Revenue for the second quarter increased to $454.1 million from $200.4 million. The company's net loss was $140.1 million, or $0.25 per share. A year ago, it lost $71.5 million, or $0.40 per share. Analysts had expected earnings of $0.12 per share.

READ MORE ARTICLES ON



Popular Right Now



Advertisement