Metric sales

Roblox stock plunges 15% as key sales metric unexpectedly drops again

Shares of Roblox Corp. plunged in extended trading on Tuesday after the video game company said a key sales metric unexpectedly declined for the second consecutive quarter.

Roblox RBLX,
-3.17%
announced a loss of $176.4 million, or 30 cents per share, in the second quarter, compared to a loss of $140.1 million, or 25 cents per share, a year ago. Revenue rose 30% to $591.2 million from $454.1 million in the prior year quarter, but bookings fell 4% to $639.9 million from $665.5 million dollars a year ago.

Analysts, on average, had expected a loss of 25 cents per share on bookings of $683.6 million. Analysts are focusing on bookings for Roblox and other video game companies, as they reflect more than the revenue the company may have seen in the quarter.

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.

The shares fell 15% in after-hours trading immediately after the earnings release, after closing down 3.4% in the regular session to close at $47.26.

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The average number of daily active users, or DAUs, was 52.2 million, up 21% from the prior year period. Average bookings for each DAU, however, fell 21% to $12.25.

Last quarter, Roblox shares also came under fire after the company reported an unexpected drop in bookings. Roblox stock posted its worst one-day performance since going public after that report, losing more than a quarter of its value in a single trading session, following softer-than-expected results then that children once stuck indoors were finding other ways to spend their time.

The company said bookings were up 8% to 10% year over year in July, the first month of the third quarter. In their previous report, the executives admitted that bookings were down in the first month of the second quarter.

“We are reaching record levels of users and engagement globally as we execute our innovation roadmap and expand Roblox’s appeal across geographies and age groups.” Roblox General Manager David Baszucki said in a statement. “We continue to make progress on key operational and product initiatives to improve the long-term value of the Roblox platform.”

Roblox shares are down 54% for the year, compared to a 14% drop in the S&P 500 SPX index,
-0.42%,
and a 20% drop in the tech-heavy Nasdaq COMP composite index,
-1.19%.