A man takes a picture of a Roblox banner displayed in honor of the company’s IPO on the facade of the New York Stock Exchange (NYSE) in New York on March 10, 2021.
Brendan McDermid | Reuters
Roblox shares fell about 3.5% in premarket trading Wednesday after the video game company reported results for its fiscal first quarter.
Here’s how the company did it:
- Loss per share: According to a survey of analysts by Refinitiv, the loss will be 44 cents, against an expected loss of 40 cents per share.
- Income (booking): $774 million versus $766 million expected, according to Refinitiv.
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The revenue figure is what Roblox calls a reservation. It includes sales recognized during the quarter and revenues for future periods.
Daily average active users, or DAUs, reached 66 million, up 22% year over year. Hours of engagement totaled 14.5 billion, also up 23% year-over-year. Both DAU and engagement growth saw the largest growth among Roblox’s international and 13 and older segments.
“And while users of all ages are also growing, older users continue to be the largest contributor, with users aged 17-24 growing 35% in Q1 2023 compared to Q1 2022,” the company said in a statement. about profits.
The company reported a net loss of $268 million for the quarter, or a loss of 44 cents per share, compared with a net loss of $160.2 million, or a loss of 27 cents per share, in the year-ago quarter.
Amid wider cuts in technology and recruitment costs, the company made it clear it was comfortable with current headcount and pay levels given the “momentum we’re seeing in bookings”. Roblox posted a 23% year-over-year increase in adjusted revenue, or bookings.
“We can now begin to decelerate year-over-year increases in headcount and labor costs,” the company said in an earnings release, with bookings growth expected to outpace compensation growth from the first fiscal quarter of 2024 onwards.
