Roblox shares sink after reporting bigger loss than expected

Shares of Roblox fell much than 15% successful premarket trading Wednesday aft the institution reported a third-quarter loss but bushed expert estimates for bookings revenue.

Here's however the institution did:

• Loss per share: 50 cent nonaccomplishment vs. 35 cent nonaccomplishment per stock expected, according to Refinitiv
• Revenue (bookings): $702 cardinal vs. $686 cardinal expected, according to Refinitiv

The gross fig is what Roblox calls bookings, which see income recognized during the 4th and deferred revenue. Bookings roseate by 10% twelvemonth implicit year. 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 reported 58.8 cardinal mean regular progressive users, up 24% from a twelvemonth earlier, and up from the 52.2 cardinal regular progressive users it reported successful its 2nd quarter. Users spent much than 13.4 cardinal hours engaged successful Roblox during the 3rd quarter.

Roblox said mean bookings per regular progressive idiosyncratic was $11.94, down 11% twelvemonth implicit year.

The institution saw bookings swell much than 200% during the pandemic when kids were spending much clip connected their screens portion stuck astatine home. The banal was blazing blistery successful 2021, aft Roblox's direct listing in March. Its marketplace headdress neared $80 cardinal earlier peaking successful November 2021. Shares are down astir 62% truthful acold this year.

Roblox volition clasp its quarterly telephone with investors astatine 8:30 a.m. ET connected Wednesday.