Roblox will continue to invest in strategic areas that will trigger growth and monetization.
Shares of American video game developer Roblox Corporation (NYSE: RBLX) plunged 12% in reaction to Q2 2022 financial results that missed estimates. The company said loss per share was 30 cents, falling further than analysts’ expectations of 21 cents. Also, Roblox said bookings for Q2 2022 were $639.9 million, while analysts were expecting $644.4 million. Notably, Roblox generates revenue from selling Robux. Robux is the company’s virtual currency users use to dress up their avatars. The currency is also used in buying other premium features in the games. Roblox refers to revenues derived from these as bookings, and the figures are down 4% YoY, according to the Q2 2022 report.
Roblox Releases Q2 2022 Report
In addition, the Average Daily Active Users (DAUs) were 52.2 million. Although daily users are up 21% compared to Q2 of the previous year, it was lower than Q1 2022 numbers. Also, the figure is about a million lower than expectations. In total, Roblox users spent over 11 billion hours engaged with the video game during Q2 2022. On Average Bookings per DAU (ABPDAU) during the second quarter, the company said the number declined 21% YoY. ABPDAU was $12.25
Following the quarterly report release that missed analysts’ estimates on the top and bottom lines, the company’s shares fell in after-hours trading.
While announcing its Q2 2022 financial performance, Roblox also highlighted its key metrics for July. While revenue for the month was between $205 million and $208 million, bookings were up 2%-10% YoY at $243 million and $247 million. DAUs also grew 25% YoY to 58.5 million, while users spent 4.7 billion engaged with the video game.
CEO David Baszucki stated:
“We are driving record levels of users and engagement globally as we execute on our innovation roadmap and broaden the appeal of Roblox across geographies and age groups. We continue to make progress on key operational and product initiatives to enhance the long-term of the Roblox platform.”
Roblox’s Continuous Investment Plans
The company’s Chief Financial Officer, Michael Guthrie, added that Roblox would continue to invest in strategic areas that will trigger growth and monetization.
Roblox was one of the companies that recorded massive increases at the pandemic’s peak. While many companies had to lay off staff due to losses, the video game developer saw its bookings spike by over 200%. At the time, the coronavirus forced the whole world to stay home, and kids spent more time on their screens. The company continued to surge, amassing more gains as it made its public debut in March 2021. Its market cap, currently at $29 billion, was almost $80 billion during the public listing.
At press time, Roblox stock has declined further in after-hours trading at 17.44% to $39.09. The company’s shares have dropped more than 44% in a year and 54% since 2022. However, shares are up 97.54% in the last three months, 27.70% over the past month, and nearly 1% in the last five days.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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