Roblox Revenue And Engagement Numbers Are Huge, But Still Miss Expectations Causing Stock To Deep Dive Today
Net losses continue to mount as the juggernaut continues to streamline and build out a metaverse.
Look, Roblox is huge. The creation platform is simply a juggernaut. Although more and more competition has found its way into their space, the king is still on top. It hasn't been all roses and candies though. With net losses quarter after quarter lately and a slew of controversial accusations levied at the company, you would be right to wonder how it is all being held together.
As of this writing, Roblox stock prices are down over 20% after the company released its latest financial statement.
Surface level? The numbers continue to be huge. First quarter revenue came in at $801.3 million, which is an increase of 22% YoY (year-over-year). Bookings were also up 19% YoY, coming in at $923.8 million. Other metrics like Daily Active Users, Hours Engaged, and Average Bookings per Daily Active User were also all up YoY.
So...where's the bad news? Why is the stock falling?
First, the net losses continue to pile up with Q1 seeing a $270.6 million net loss, slightly more than this time time last year. Second, while the other metrics may be big, they weren't as big as Wall Street expected. Combine those two factors, and you have a bit of a "sell" call hitting the company's stock.
That $801.3 million in revenue is great, but investors expected $918.8 million. Looking at the full year, Roblox expected to snag $4.18 billion in bookings, but they "only" hit the $4.05 billion mark.
Wait, what about growing the users? Well, yeah, Hours Engaged being up 15% YoY is great, but that 16.7 billion hours fell short, once again, of the 17.1 billion hour expectation.
“Our teams have been hard at work identifying opportunities to drive DAUs (daily active users), hours, and bookings growth rates back to 20% year over year,” said Chief Executive David Baszucki. Baszucki also reiterates the potential of the company's investments into VR metaverse technology and new algorithms for content distribution.
Is Roblox going anywhere anytime soon? No, of course not. However, when you fail to meet Wall Street expectations quarter after quarter...things can get a bit tough out there as 2024 continues to show the video game industry.
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About the Author
Mike “Magicman” Byrne has been a part of the MMOBomb family for years and serves as the site’s current Editor-in-Chief. His love for MMOs and gaming in general has led him to covering games for numerous gaming websites including Gamebreaker TV and XIV Nation where he proudly displays his fanboy flag for FFXIV:ARR.
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(Sorry for the delay, the developers were napping!)
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This is a typical company trying to make out they are not making money. lol
Also the 17.1 billion hour expectation is ludicrous amount for them to actually hope to force players to be held into their game, it is kind of insulting to the human race.
Roblox expectations make us look a real dumb society being milked by them.
Nice job on the kids your doing. where child safety responsibility gone.
This company has not scruples. they are eating off kids.
if they could see all these children and adults I do not think they would do this with their overkill expectations of pushing for more game time and profits.
I think this company needs to be done and dusted.