Roblox Shares Suffer Worst Decline in 9 Months as Daily Users Decrease
Shares of Roblox Corp. experienced a significant decline, marking its largest drop in nine months. This came after the company revealed that users were spending less time engaging with its games during the second quarter, falling short of Wall Street’s expectations.
Roblox customers spent 14 billion hours playing games in the three months ended June 30, below the 14.4 billion analysts expected. The number of daily active users on the platform fell 1% from the last quarter, also missing analysts’ expectations and calling into question whether Roblox will be able to reach its ultimate goal of reaching one billion users.
Shares fell as much as 20 percent in New York. They were up 33 percent this year through Tuesday’s close.
The company reported sales that beat analysts’ expectations as the online gaming giant continued to bring in new players. Provisions, which the company defines as sales and the change in carryover income from online purchases, rose 1% from the last quarter to $780.7 million. That beat analysts’ forecast of $770.6 million.
Roblox is one of the most popular gaming platforms. The 17-year-old company leads the metaverse, where rivals have struggled to gain traction and companies such as Microsoft Corp., Tencent Holdings Ltd. and Meta Platforms Inc., are scaling back their efforts as the hype wears off.
