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The company’s second-quarter results fell below market expectations as the pandemic gaming boom may be fading.
Roblox Corporation, maker of the eponymous online gaming platform and game creation system, reported second-quarter earnings that came in below market expectations.
The San Mateo-based company reported bookings of $665.5m, a 35pc increase year on year but below Wall Street predictions of $689.2m. The company posted a loss per share of $0.25, with a total net loss of $140.1m.
The company’s average daily active user (DAU) count hit 43.2m, a 29pc increase from last year. The number of hours engaged were 9.7bn, up 13pc. Average bookings per Roblox DAU were $15.41, which the company said was a “slight” increase from last year.
Overall, the figures represent only slight movements compared to the previous quarter, potentially indicating that the pandemic-related online gaming boom is fading.
Despite the mixed results, Roblox CEO and founder David Baszucki was optimistic. “Our continued growth demonstrates the importance of our mission and the power of our platform. These results are fuelled both by our creator ecosystem and by the millions of people around the globe who want to connect and share new experiences every day on Roblox.”
The company’s CFO, Michael Guthrie, added: “In the quarter ending June 30 2021, cash from operations and free cash flow continued at record levels. The third quarter is off to a strong start with our highest levels of users and engagement to date. We will continue to invest in our developer community, hire top engineering talent, and build out the infrastructure required to scale Roblox globally.”
Roblox shares dropped by as much as 7pc in after-hours trading following the announcement.
This is the company’s second earnings report since it went public in March. The first Roblox financials in May largely beat expectations and gave its share price a bump. Before going public, the company had the backing of big VC names including Andreessen Horowitz and Tencent.
Roblox also revealed this week that it has acquired Discord competitor Guilded for an undisclosed amount. Guilded will continue to operate independently and offer its platform to connect gamers with chat functions and organisation tools.
Even before being acquired, Guilded offered specific functionality for Roblox, as well as for titles including Counterstrike: Global Offensive, League of Legends and Fortnite. It had raised $10.2m in funding to date.
Guilded founder and CEO Eli Brown said his team remains “focused on providing the best experience we can for all of our communities”.
