By Akash Sriram
-Gaming platform Roblox Corp on Tuesday missed Wall Street estimates for quarterly bookings as the pandemic-driven frenzy for its video games waned, sending its shares down more than 13% in extended trading.
Increased outdoor activities since the lifting of restrictions and reopening of schools in North America have affected user spending for pandemic winner Roblox, which is among the world’s most popular gaming sites for children.
Roblox, which had its market debut last year, said during the fourth quarter average daily active users grew 33% to 49.5 million and gamers spent 10.8 billion hours on the platform, a 28% jump from last year.
“Near term monetization results are disappointing for investors. However, user and engagement growth are strong. We expect numerous monetization levers to have impact going forward,” said Brandon Ross, analyst at LightShed Partners.
Shares of San Mateo, California-based Roblox rose 5.5% since the company’s market debut to close at $73.3 on Tuesday.
The company posted a 20% rise in fourth-quarter bookings to $770.1 million. Analysts had expected $772 million, according to IBES data from Refinitiv.
Bookings refer to Roblox’s virtual currency “Robux” that players buy that can be used upgrade players’ avatars by buying in-game items such as clothing, pet, collectibles or accessories.
Revenue, the amount of “Robux” spent by users that the company realizes over a longer period of time, increased 83% to $568.8 million.
Roblox reported a wider-than-expected loss of 25 cents per share compared with Wall Street estimates of 13 cents per share, according to IBES data from Refinitiv.