Roblox stock sinks after earnings as losses swell

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Roblox shares were tumbling after the company posted a wider loss than expected for the latest quarter. $RBLX reported a loss of $297.8 million, or 50 cents a share, compared with a loss of $74.0 million, or 13 cents a share, in the year-ago period:

Roblox Corp. shares were tumbling in premarket activity Wednesday after the youth-centric virtual-world platform posted a wider loss than analysts were anticipating for the latest quarter.

The San Mateo, Calif.-based company reported a third-quarter loss of $297.8 million, or 50 cents a share, compared with a loss of $74.0 million, or 13 cents a share, in the year-ago period. Revenue rose slightly to $517.7 million from $509.3 million in the year-ago quarter, while bookings increased 10% to $701.7 million from $637.8 million in the year-ago period.

The company defines bookings as “revenue plus the change in deferred revenue during the period and other noncash adjustments.” The importance of bookings comes into play as Roblox sells virtual currency on its site that may be considered deferred revenue. Roblox’s growth in users, engagement, and bookings during the latest quarter “demonstrates the significant progress we are making on key platform initiatives such as aging up and international growth,” Chief Financial Officer Michael Guthrie said in a release. “At the same time, we are continuing a disciplined capital allocation strategy focused on maximizing long-term shareholder value.”

 

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$RBLX

Coincidence that this was announced AFTER the election?

A complete disaster I wrote about it this morning

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