Roblox The stock plummeted 14% after the gaming platform failed to reach Wall Street reservations and daily active users estimates.
Roblox reported $1.36 billion in the fourth quarter, compared to the expected $1.37 billion analysts voted by LSEG. The daily active users reach 85.3 million, reflecting 19% growth a year ago. However, this figure did not stand at estimates for the 88.2 million StreetAccount.
The company said bookings are expected in the range of $52 billion to $500 billion in 2025, compared to estimates of a $500 billion fact set.
CEO David Baszucki said in the revenue release that the company will continue to invest in virtual economy, app performance, and “investment in AI-powered discovery and safety, empowering creators and enhancing the user experience.” Ta.
Roblox results come even in rocky stretches for the industry. Video Game Developer Electronic Arts Among other games, the football franchise sales have slowed down, which cuts forecasts from last month. In a revenue release on Tuesday, the company showed online bookings fell by 6% from a year ago.
Roblox, which relies primarily on user-generated content and games, has gained popularity due to the depths of Covid-19, especially among the younger generations.
The San Mateo-based company’s shares were made public on the New York Stock Exchange in March 2021 and closed at a market capitalization of $69.50, or about $38 billion. Thursday’s move will bring stocks to almost 53% off the highest ever closure height reached in November 2021.
