Roblox shares sink on disappointing revenue and wider-than-expected loss

Roblox shares sink on disappointing revenue and wider-than-expected loss


David Baszucki, Co-Founder and CEO, Roblox, speaks during the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.

Patrick T. Fallon | AFP | Getty Images

Roblox shares fell about 10% in extended trading on Tuesday after the kids’ video game company issued first-quarter results that trailed analysts’ estimates.

Here’s how the company did:

  • Earnings: Loss of 27 cents, vs. loss of 21 cents as expected by analysts, according to Refinitiv.
  • Revenue: $631.2 million, vs. $636.6 million as expected by analysts, according to Refinitiv.

The revenue figure is what Roblox calls bookings, which include sales recognized during the quarter and deferred revenue.

Bookings declined by 3% in the quarter, a sign of how much Roblox’s business has cooled off from the pandemic, when kids were stuck at home and spending more time on their screens. Roblox generates revenue from sales of its virtual currency called Robux, which players use to dress up their avatars and buy other premium features in the games.

Roblox reported 54.1 million average daily active users in the first quarter, up 28% from a year earlier but below the StreetAccount consensus of 55 million. Users spent 11.8 billion hours engaged in Roblox, the company said, up 22%.

Average bookings per daily active user slid 25% to $11.67. Analysts polled by StreetAccount had expected $11.65.

Roblox saw bookings swell past 200% during the pandemic, which shut down schools and offices. The stock was blazing hot in 2021, after the company’s direct listing in March. The shares began trading at $64.50, and briefly eclipsed $134 in November, around the time the Nasdaq peaked. Roblox’s market cap neared $80 billion.

The frenzy abated as the economy started reopening. And the market’s retreat this year has had an outsized impact on newly-public companies like Roblox. Shares of the gaming platform are more than 80% off their record high.

The company estimated that in April it had $221 million to $224 million in bookings, down 8% to 10%.

“While Covid and the subsequent re-opening have contributed to slowing growth in several of our metrics, based on third party data we believe we are gaining share on both users and hours relative to certain other companies in gaming and social media that compete for our users’ attention,” Roblox said in a letter to shareholders.”

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

WATCH: Meals in the metaverse, a new frontier for restaurants?



Source

Nvidia heads for 5-day win streak as it hits record highs
Technology

Nvidia heads for 5-day win streak as it hits record highs

Jensen Huang, CEO of Nvidia, speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. Gonzalo Fuentes | Reuters Nvidia stock rose for a fifth consecutive day Friday as the chipmaker hovered near fresh highs and investors shook off China concerns. The […]

Read More
Quantum computing is having a moment. But the technology remains futuristic
Technology

Quantum computing is having a moment. But the technology remains futuristic

Microsoft’s Majorana 1 quantum computing chip Microsoft It doesn’t quite have the buzz of artificial intelligence, but quantum computing is having a moment of its own. Some of the most powerful institutions in the world, including Google, Microsoft, Amazon, IBM and the U.S. government, are spending many millions of dollars in a race to develop […]

Read More
Germany tells Apple, Google to block DeepSeek as the Chinese AI app faces rising pressure in Europe
Technology

Germany tells Apple, Google to block DeepSeek as the Chinese AI app faces rising pressure in Europe

In this photo illustration, the DeepSeek logo is seen displayed on a smartphone screen and in the background, the flag of the European Union. Thomas Fuller | Sopa Images | Lightrocket | Getty Images One of Germany’s data protection watchdogs on Friday said DeepSeek’s app illegally sends user data to China and asked Google and […]

Read More