Roblox shares dive 21% after earnings miss

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The gaming company reported a revenue of $770 million compared to the $772 million expected for the fourth quarter.

The gaming company reported earnings on Tuesday after the bell that missed Wall Street estimates on the top and bottom line. It noted $770 million in revenue compared to the $772 million expected, per Refinitiv consensus estimates, for the fourth quarter. It also reported a 25 cent loss per share, worse than the 13 cents loss per share expected. Roblox said it had 49.5 million daily active users during the quarter, up 33% year-over-year.

Roblox is an open gaming platform that lets players create their own interactive "worlds." It was the first major company working on the metaverse to go public. The company sells virtual currency to players, which is used to purchase digital items in the game. The company recently partnered with companies like"Our key takeaway from Roblox's 4Q update...

"Furthermore, the company indicated y/y bookings comps, "should improve starting in the May-June timeframe," leaving us to ponder what this suggests for February-April. Why the anticipated slowdown?"

 

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