Roblox quarterly bookings disappoint as gaming frenzy wanes – Reuters

February 15, 2022 by No Comments

A child looks back at a banner for Roblox, displayed to celebrate the company’s IPO, on the front facade of the New York Stock Exchange (NYSE) in New York, U.S., March 10, 2021. REUTERS/Brendan McDermid//File Photo

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Feb 15 (Reuters) – Gaming platform Roblox Corp (RBLX.N) 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.

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“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.

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Source: https://www.reuters.com/technology/roblox-quarterly-bookings-miss-estimates-gaming-frenzy-fades-2022-02-15/

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