Q1 2022 Roblox (RBLX) Revenue

David Baszucki, co-founder and CEO of Roblox, speaks at the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.

Patrick T. Fallon | AFP | Getty Images

Roblox shares fell about 10% in extended trading on Tuesday after the children’s video game company reported first-quarter results that fell short of analysts’ estimates.

Here’s how the company did it:

  • Earnings: Loss of 27 cents, compared to a loss of 21 cents as expected by analysts, according to Refinitiv.
  • Revenue: $631.2 million, versus $636.6 million as forecast by analysts, according to Refinitiv.

Revenue is what Roblox calls bookings, which includes sales booked during the quarter and deferred revenue.

Bookings were down 3% in the quarter, a sign of the downturn in Roblox’s business following the pandemic, when kids were stuck at home and spending more time on their screens. Roblox generates revenue through sales of its virtual currency called Robux, which players use to dress up their avatars and purchase other premium features in games.

Roblox reported 54.1 million average daily active users in the first quarter, up 28% from a year earlier, but below the StreetAccount consensus of 55 million. Users spent 11.8 billion committed hours in Roblox, the company said, up 22%.

Average bookings per daily active user fell 25% to $11.67. Analysts polled by StreetAccount had expected $11.65.

Roblox has seen bookings top 200% during the pandemic, which has closed schools and offices. The stock was hot in 2021, following the company’s direct listing in March. The shares began trading at $64.50 and briefly eclipsed $134 in November, around the time the Nasdaq peaked. Roblox’s market capitalization was around $80 billion.

The frenzy died down when the economy began to reopen. And the market pullback this year has had an outsized impact on newly listed companies like Roblox. Shares of the gaming platform are more than 80% below their all-time high.

The company estimated that in April it had between $221 million and $224 million in bookings, down 8% to 10%.

“While Covid and the subsequent reopening has helped slow the growth of many of our metrics, based on third-party data, we believe we are gaining share on both users and hours compared to some other gaming and social media companies competing for our users’ attention,” Roblox said in a letter to shareholders.

Executives will discuss the results with analysts on a conference call beginning at 8:30 a.m. ET Wednesday.

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