stock was sinking after the videogame firm missed Wall Street’s expectations for first-quarter adjusted revenue and reported a wider-than-expected net loss.
Roblox (ticker: RBLX) reported bookings, a form of adjusted revenue, of $631.2 million, which was down 3% from the first quarter of 2021. Analysts polled by FactSet had forecast bookings of $655.7 million. Roblox’s net loss grew to $160.2 million, which was larger than expectations for $68 million, according to FactSet.
Roblox stock sank 4.9% in after-hours trading following the earnings release. The stock had fallen 77% year to date as investors soured on high-growth tech stocks.
The company, which offers a platform that allows users to make games and interact in virtual worlds, said daily active users hit 54.1 million, up 28% from the first quarter of 2021. Users over age 13 grew by 38% and accounted for 52% of daily active users. Hours engaged jumped year over year 22% to 11.8 million.
Roblox’s adjusted earnings before taxes, depreciation, and amortization, or Ebitda, clocked in at $67.9 million, compared with analyst estimates at $91.6 million, according to FactSet.
The company said in a letter to shareholders that it can better monetize its platform by improving search and discovery and making results more personalized. The firm is also developing sponsored search options and recommendations.
“Beyond sponsored ads, we are at the beginning stages of developing native and immersive advertising in the Roblox metaverse,” the company said. “We envision several new advertising units that we imagine as being complementary to our user experience. These ad units will include ways for brands and developers to bring traffic to their experience, as well as ways for brands to dynamically become part of experiences.”
For the month of April, Roblox said daily active users were 53.1 million, up 23% from April 2021. Hours engaged rose 18% to 3.8 billion during the month.
Write to Connor Smith at [email protected]