Roblox gain (RBLX) Q1 2022

David Baszucki, co-founder and CEO of 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 roughly 10% in extended trading Tuesday after the children’s video game company issued the first quarter results which followed analysts’ estimates.

Here’s how the company did it:

  • I earn: Loss of 27 cents, versus the loss of 21 cents as predicted by analysts, according to Refinitiv.
  • Income: $ 631.2 million, versus $ 636.6 million as predicted by analysts, according to Refinitiv.

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

Bookings fell 3% in the quarter, a sign of how much Roblox business has cooled since the pandemic, when children were stuck at home and spent more time on their screens. Roblox generates revenue from the sales of its virtual currency called Robux, which players use to dress up their avatars and purchase other premium features in games.

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

Average bookings per daily active user dropped 25% to $ 11.67. Analysts interviewed by StreetAccount were expecting $ 11.65.

Roblox saw bookings increase over 200% during the pandemic, which closes schools and offices. The stock was hot in 2021, after that of the company direct quotation in March. The stock began trading at $ 64.50 and briefly eclipsed $ 134 in November, around the time the Nasdaq peaked. Roblox’s market capitalization has approached $ 80 billion.

The frenzy subsided as the economy began to reopen. And the market withdrawal this year had a immense impact on new listed companies like Roblox. The shares of the gaming platform are more than 80% lower than their record.

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

“Although Covid and its subsequent reopening have helped slow the growth of many of our metrics, based on third-party data we believe we are gaining share on both users and hours compared to some other competing gaming and social media companies. for our user attention, ”Roblox said in a letter to shareholders.

Executives will discuss the findings with analysts in a conference call starting at 8:30 am ET on Wednesday.

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