Roblox Issues Subpar Outlook, Stock Tanks To Yearly Low
Roblox Corp (NYSE:RBLX) stock plunged after it reported fiscal first-quarter 2024 bookings growth of 19% year-on-year to $923.80 million, beating the analyst consensus estimate of $922.98 million.
Adjusted EPS loss of $(0.43) beat the analyst consensus loss estimate of $(0.53). The stock almost touched its 52-week low price of $24.88.
Also Read: Roblox Studio Boss Addresses Children Making Money On The Platform: ‘They Didn’t Feel Exploited’
The revenue of the American video game developer grew by 22% Y/Y to $801.3 million.
Average Daily Active Users (DAUs) were 77.7 million, up 17% Y/Y. Hours Engaged were 16.7 billion, up 15% Y/Y.
The average monthly unique payers were 15.6 million, up 13% year over year. The Average Bookings per DAU (ABPDAU) was $11.89, up 2% year over year.
Roblox generated $238.9 million in operating cash flow as of March 31, 2024.
Outlook: Roblox expects second-quarter bookings of $870 million—$900 million (versus the consensus of $934.09 million) and fiscal 2024 bookings of $4.00 billion—$4.10 billion (prior $4.14 billion—$4.28 billion) versus the consensus of $4.19 billion.
Analysts had flagged their expectations from partnerships that Roblox forged. The company had tapped Integral Ad Science Holding Corp (NASDAQ:IAS) to expand access to immersive video ads for all advertisers. It also collaborated with PubMatic, Inc (NASDAQ:PUBM)
to drive sales of video ads on the platform.
Price Action: RBLX shares traded lower by 28.3% at $27.95 premarket at the last check Thursday.
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