Shares fell after the company reported a bigger-than-expected second-quarter loss and said bookings were down 4% year-over-year. It’s the latest video game company to report disappointing sales in recent weeks.
The company, which offers tools for users – mostly children and teens – to create and interact with friends in their own virtual worlds, said its net loss was $176.4 million, or 30 cents per share. . That was wider than Wall Street’s consensus estimate for a loss of 25 cents a share, according to FactSet.
Reservations, a key adjusted revenue metric for video game companies that sell virtual goods, fell 4% year-over-year to $639.9 million. Analysts had expected $657.2 million, according to Bloomberg.
(ticker: RBLX) were down nearly 13% in extended trade. The company has scheduled a call to discuss the results Wednesday at 8:30 a.m. EST.
Roblox said average daily active users were 52.2 million, up 21% from a year earlier, while hours spent on Roblox increased 16% to 11.3 billion . The average booking per daily active user was $12.25, down 21% year over year.
As in the past, the company did not provide an outlook for the current quarter, but did provide key indicators for the first month. He said July bookings were between $243 million and $247 million, with the latter figure representing a 10% year-over-year growth. Daily active users in July rose 26% from a year earlier to 58.5 million, while hours of engagement rose 25% to 4.7 million.
The company attributed the better year-over-year percentage changes in July to easier comparisons, as well as investments, product initiatives and a better focus on operations.
“We believe the higher levels of booking growth among users aged 17 to 24 are partly the result of older content,” the company said.
Roblox shares skyrocketed after the company went public in 2021. Investors flocked to the stock as it offered one of the few companies to offer a successful metaverse-style product. But stocks are down 54% in 2022 as growth that had been fueled by the pandemic slowed.
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