On August 9th, Roblox Corp failed to hit estimated financial projections for quarterly bookings. This caused shares in the company to fall by 19% in extended trading on the same day.
That Tuesday, Roblox posted net bookings of $639.9 million for the second quarter of this year. Unfortunately, analysts were expecting $644.4 million according to Refinitiv data.
“We have seen impacts across the video game space due to changes in consumer discretionary spend, and that appears to be somewhat more pronounced in the free-to-play genre and mobile gaming,” said Corey Barrett, the head of TMT research at M Science.
Despite failing to meet estimates, the company still found a lot of success last quarter. Revenue was $591.2 million (up 30% from 2021). Average Daily Active Users (DAUs) and hours engaged were also up from last year.
“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,” said David Baszucki, chief executive officer of Roblox. “We continue to make progress on key operational and product initiatives to enhance the long-term value of the Roblox platform.”
(All information was provided by Business Wire and U.S. News)
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