Roblox shares came down after noting a more important loss than predicted
November 10, 2022: Shares of Roblox decreased over 15% in premarket trading on Wednesday following the company’s reported third-quarter loss but beat analyst estimates for bookings revenue.
The company produces revenue from sales of its virtual currency, Robux, which players use to dress up their avatars and purchase other premium game features. The revenue figure is what Roblox calls bookings, including sales, sees during the quarter, and deferred revenue. Bookings rose by 10% year over year.
Roblox reported 58.8 million average daily active users, up 24% from a year earlier and up from the 52.2 million daily active users it said in its second quarter. Users spent more than 13.4 billion hours engaged in Roblox during the third quarter.
Roblox stated the average bookings per daily active user was $11.94, down 11% year over year.
The company saw bookings swell more than 200% during the pandemic when kids spent more time on their screens while stuck at home. After Roblox’s direct listing in March, the stock was blazing hot in 2021.
Its market cap neared $80 billion before peaking in November 2021. Shares are down about 62% so far this year.
Roblox will hold its quarterly call with investors at 8:30 a.m. ET on Wednesday.
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