The New York Stock Exchange welcomes Roblox (NYSE: RBLX) executives and guests, today, Wednesday, March 10, 2021, to celebrate its direct listing.
Roblox released results on Tuesday that lacked analysts’ estimates of the top and bottom results.
Here’s how the company did it:
- Loss per share: 30 cents vs. 21 cents expected, according to a survey of analysts polled by Refinitiv.
- Revenue: $639.9 million vs $644.4 million expected, according to Refinitiv.
The shares fell more than 12% in after-hours trading.
Revenue is what Roblox calls bookings, which includes sales booked during the quarter and deferred revenue. Bookings were down 4% year over year. The company generates revenue through sales of its virtual currency called Robux, which players use to dress up their avatars and purchase other premium features in games.
Roblox reported 52.2 million average daily active users, about one million less than the StreetAccount consensus. This figure is up from 21% the previous year, but down from the 54.1 million daily active users reported in the first quarter. Users spent over 11 billion committed hours in Roblox during the second quarter.
Roblox said average bookings per daily active user were $12.25, down 21% year over year.
The company also offered a preview of the third quarter. He said daily active users in July hit an all-time high of 58.5 million, up 26% year-over-year. And bookings for the month fell between $243 million and $247 million, up 8% to 10% from July 2021.
The company has seen bookings increase by more than 200% during the pandemic, when children spent more time on their screens while stuck at home. The title was hot in 2021, following Roblox’s direct listing in March. Its market capitalization approached $80 billion before peaking in November 2021. The shares are down more than 60% from their highs.
Chief Commercial Officer Craig Donato told CNBC’s Steve Kovach that Roblox is optimistic about the future due to its investments in its employees, server capacity and global data centers.
“We’re really in investment mode,” Donato said, “and that’s going to dampen profits a bit, but these are investments that are the right investments for us and will pay off within three to three-five years. .”
Executives will discuss the results with analysts on a conference call beginning at 8:30 a.m. ET Wednesday.