Roblox CEO David Baszucki says reservations are changing

Roblox CEO David Baszucki told CNBC Wednesday that the company is seeing its bookings recover in April after the company said earlier this week it was down 3% in the March quarter.

Reservations are the company’s way of describing sales of its virtual currency, Robux, which players use to purchase digital items like avatars and other premium features.

Roblox is a virtual world game that is especially popular with children that is played on phones, PCs and game consoles. Players can inhabit virtual worlds, play games and even sell their creations to other players.

Baszucki said Jim Cramer in a “Crazy money” Interview that bookings fell partly because the company saw increased user engagement last year during the Covid pandemic, which subsided.

“March was a very difficult confrontation. We were all stuck a year ago,” said Baszucki. “We are happy that in April we saw that this has started to change. Let’s think about a longer period, we will see that bookings will start to catch up with the growth of users.”

After the closing bell on Tuesday, Roblox reported disappointing first quarter results, which prompted investors to sell the stock. It plummeted 10% in after-hour trading on Tuesday. However, it closed up nearly 3.4% on Wednesday in a major trend reversal. Although it is not clear what caused the surge, the company it looked bullish on the growth rates of the current quarter.

Roblox posted a loss per share of 27 cents in the first quarter, which was wider than expected. The revenue and active daily users also came to light. The company said it was optimistic about growth rates in the current quarter and that the summer could be an opportunity for growth.

Roblox is also starting to develop alternative sales sources and new users for the virtual world more seriously, Baszucki said. As economies emerge from the pandemic, Roblox will push for new search capabilities and easier partnerships with brands, and to expand the amount of user-generated content (UGC) sold on the platform.

“I think this quarter is the first time we go out and say, look, we’re going to move a little bit towards the efficient frontier of our economy, both in how we do research and discovery, and in the incredible possibilities of how brands can bring traffic, and also our UGC catalog, which has a huge amount of economic activity, “he said.

One possibility in the future is that Roblox could be used to connect colleagues in a corporate environment, Roblox CEO told Cramer. “Someday we will use Roblox in our office to stay connected while some of our people work remotely,” he imagined.