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Roblox shows drop in big sell metric, stocks head for lowest prices yet

Shares of Roblox Corp. fell to their lowest prices on record on Tuesday as the social gaming platform reported a drop in an important sell indicator.

Roblox RBLX,
shares initially fell 10% in after-hours trading, but rallied somewhat to end the session down 4%, after falling 5.8% in the regular session to close at $23.19; the stock has never traded below $21.65 in a regular session, but briefly dipped below it in extended trades. The stock ended 67% off the $69.50 it closed on the first day of trading just over a year ago.

The company posted a loss of $160.2 million, or 27 cents per share, in the first quarter, compared with a loss of $134.2 million, or 46 cents per share, a year earlier. Roblox ended the quarter with approximately 588.5 million shares outstanding, up from 291.1 million shares outstanding a year ago.

Revenue increased to $537.1 million from $387 million in the prior year quarter, while bookings decreased to $631.2 million from $652.3 million for the year-ago period. last year.

Analysts, on average, had forecast a loss of 22 cents per share on bookings of $655.7 million. Wall Street consensus on FactSet revenue compares to bookings reported by Roblox.

The company defines reservations as “revenue plus the change in deferred revenue during the period and other non-cash adjustments.” The importance of reservations comes into play because the company sells virtual currency on its site which can be considered as deferred income.

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The average number of daily active users, or DAUs, was 54.1 million, up 28% from the same period a year ago. For April, Roblox said DAUs were up 23% to 53.1 million from a year ago.

“We remained focused on delivering on our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors,” Roblox CEO David Baszucki said. in a press release. “Over the past two quarters, we’ve launched a number of notable innovations, including spatial voice and layered wearables, that will continue to drive user growth, engagement and monetization.”

In February, Roblox stock posted its worst one-day performance since its IPO, losing more than a quarter of its value in a single trading session, after weaker-than-expected results as once-stuck kids inside found other ways to pass their time.