Roblox shares sink after November update shows slowing growth

Shares of Roblox were down 16% connected Thursday aft the gaming institution released a November concern update that showed slowing maturation and a diminution successful however overmuch it earns from its regular users.

The institution said estimated bookings were betwixt $222 cardinal and $225 cardinal for the month. That's up 5% to 7% year-over-year. But, successful November 2021, Roblox said estimated bookings during the aforesaid play grew 22% to 24% year-over-year. Roblox said the spot of the U.S. dollar against the Euro and British Pound impacted its business.

Roblox calls its gross fig bookings. The institution generates gross from income of its virtual currency called Robux, which players usage to formal up their avatars and bargain different premium features successful the games.

Roblox's mean bookings per regular progressive idiosyncratic were betwixt $3.92 and $3.97, down 7% to 9% from a twelvemonth ago.

Overall regular progressive users roseate 15% from November 2021 to 56.7 cardinal users but, past year, it reported 35% growth.

Roblox's update comes amid broader weakness successful the video gaming industry. Last month, Take-Two Interactive, the institution down games similar Grand Theft Auto, chopped its outlook successful the existent 4th and for fiscal 2023, blaming "current macroeconomic conditions."

"Our reduced forecast reflects shifts successful our pipeline, fluctuations successful FX rates, and a much cautious presumption of the existent macroeconomic backdrop, peculiarly successful mobile," Take-Two CEO Strauss Zelnick said successful a statement connected Nov. 7.

In October, Apple besides warned of weakness successful integer advertizing and gaming erstwhile it reported fourth-quarter earnings. "Specifically connected Services, we expect to grow, but to beryllium impacted by the macroeconomic environment, progressively affecting overseas exchange, integer advertizing and gaming," Apple's main fiscal serviceman Luca Maestri said connected the company's latest earning call.

Shares of Roblox are down astir 73% year-to-date.