Earnings Results: Roblox shows decline in important sales metric, shares head toward lowest prices yet

Roblox Corp. shares dropped toward their lowest prices on record Tuesday as the social-gaming platform reported a decline in an important sales metric. Roblox 
RBLX,
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 shares initially fell 10% in after-hours trading, but recovered somewhat to end the session down 4%, following a 5.8% decline in the regular session to close at $23.19; shares have never traded for less than $21.65 in a regular session but briefly dipped below that mark in extended trading. The stock finished 67% off the $69.50 it closed at on its first day of trading a little more than a year ago.

The company reported a first-quarter loss of $160.2 million, or 27 cents a share, compared with a loss of $134.2 million, or 46 cents a share, in the year-ago period. Roblox finished the quarter with about 588.5 million shares outstanding, compared with the year-ago quarter’s 291.1 million outstanding shares. Revenue rose to $537.1 million from $387 million in the year-ago quarter, while bookings declined to $631.2 million from $652.3 million in the year-ago period. Analysts, on average, had forecast a loss of 22 cents a share on bookings of $655.7 million. FactSet’s Wall Street consensus for revenue compares against Roblox’s reported bookings. The company defines bookings as “revenue plus the change in deferred revenue during the period and other non-cash adjustments.” The importance of bookings comes into play as the company sells virtual currency on its site that may be considered deferred revenue. Read: The Roblox non-IPO: 5 things to know about the tween-centric gaming platform’s direct listing Average daily active users, or DAUs, were 54.1 million, up 28% from the same year-ago period. For April, Roblox said DAUs rose 23% to 53.1 million from a year ago. “We remained focused on delivering our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors,” Roblox Chief Executive David Baszucki said in a statement. “Over the past two quarters, we have launched a number of notable innovations including spatial voice and layered clothing that will continue driving user growth, engagement and monetization.” Back in February, Roblox stock logged its worst one-day performance since it went public, dropping more than a quarter of its value in one trading session, following lighter-than-expected results as once-stuck-inside kids were finding other ways to spend their time.

                  

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