Shares of Roblox Experience 10% Premarket Decline After Q2 Results Fall Short
Roblox, the widely popular online gaming platform, witnessed a 10% drop in premarket trading after releasing its second-quarter results, which failed to meet analysts’ expectations in terms of both revenue and earnings per share.
Here’s a detailed breakdown of Roblox’s performance during the second quarter:
- Loss per Share: The company reported a loss of 46 cents per share, slightly missing the projected 45 cents loss per share, according to a Refinitiv analyst survey.
- Revenue (Bookings): Roblox posted $781 million in revenue (termed as “bookings”), just shy of the anticipated $785 million as per Refinitiv’s analysis.
Roblox’s reported revenue is labeled as “bookings” and encompasses sales recognized during the quarter along with deferred revenue. Notably, bookings witnessed a 22% year-over-year upswing. The company generates revenue by selling its virtual currency, Robux, which players utilize to enhance their avatars and access premium in-game features.
The platform announced a substantial average of 65.5 million daily active users, signifying a 25% rise from the preceding year. The cumulative time users spent engaged in Roblox surpassed 14 billion hours in the quarter, marking a significant 24% year-over-year increase.
While Roblox has predominantly appealed to younger children, it has actively pursued the expansion of its user base across diverse age groups. In June, the company made headlines by permitting eligible creators to craft experiences containing mature content, targeting users aged 17 and above. Themes encompassing violence and romantic elements were included in this expansion.
In a communication directed towards shareholders, Roblox shared its observation of the widening diversity of its daily active users across various age brackets and geographical regions.
Roblox’s financial report disclosed a net loss of $282.8 million, a notable contrast from the $176.4 million net loss reported in 2022. The company attributed these amplified losses to heightened expenses required to support its rapid business growth. These expenditures include aspects such as corporate overhead, developer exchange fees, infrastructure investments, and augmenting personnel.
Moreover, Roblox highlighted its expectation of reporting losses in the foreseeable future. The average bookings per daily active user came in at $11.92, indicating a modest 3% decrease when compared to the prior year.
For those keenly interested in the company’s performance and strategic outlook, Roblox’s quarterly conference call with investors is scheduled to commence at 8:30 a.m. ET. This session promises to provide further insights into the factors influencing the company’s current state and future plans.