Roblox Corporation (NYSE: RBLX) stock plummeted 22% in intraday trading Thursday following underwhelming first-quarter results and guidance.
Roblox (NYSE: RBLX) recently released its first-quarter financial results, falling slightly short of analyst estimates for revenue and bookings. Despite substantial year-over-year revenue growth, the company reported a net loss nearly identical to that of the previous year.
The company generated revenue of $801.3 million in the first quarter, narrowly missing estimates compiled by Visible Alpha of $806.2 million. This represents a 22% increase from the $655.3 million reported in the first quarter of 2023. Average daily active users, a critical metric for online games, reached 77.7 million for the quarter, reflecting a 17% increase compared to the year-ago period.
Despite the revenue growth, Roblox reported a net loss of $270.6 million for the quarter, equivalent to 43 cents per share, narrower than analysts’ expectations of $308.4 million. This loss was nearly identical to last year’s figure of $268.3 million, or 44 cents per share.
In a letter to shareholders, the company acknowledged that while daily active users and hours engaged showed year-over-year growth, engagement experienced an unseasonal decline for much of the first quarter across various regions, ages, and platforms.
Moreover, Bookings, another key metric for the company, reached $923.8 million for the first quarter, reflecting a 19% increase from the previous year but falling short of analysts’ expectations. Bookings include revenue from the sale of virtual currency, subscriptions, and one-time purchases like gift cards.
Looking ahead, Roblox provided conservative guidance for bookings, estimating $870 million to $900 million for the second quarter and $4 billion to $4.1 billion for the full year. These projections fell below analysts’ expectations of $939.1 million for the second quarter and $4.2 billion for the full year.
Roblox (NYSE: RBLX) Stock Price Action
RBLX stock plunged 22.06% to close at $30.42 on Thursday. Its value decreased by 18.53% this week. Trading activity has witnessed 69,831,876 (69.83 million) shares changing hands, well above the average daily volume of 7.01 million.
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry. Read Full Bio
