Roblox Stock Reaction Muted Despite Earnings Miss, Analysts Weigh In

© Reuters Roblox (RBLX) Stock Reaction Muted Despite Earnings Miss, Analysts Weigh In

Shares of Roblox (NYSE:RBLX) initially plunged over 10% in post-market trading after the company reported worse-than-expected Q1 bookings. However, shares have recovered since to trade at 0.5% in the green as of 06:50 EST.

Revenue came in at $537.1 million, up 39% YoY, but much lower than the $657.4 million consensus. Loss per share stood at 27c, compared to a loss per share of 46c in the same period last year and worse than the Street consensus of negative 20c.

Roblox reported $631.2 million in bookings, down 3.2% YoY and below the consensus estimates of $633.3 million. The number of daily active users in the period totaled 54.1 million, up 29% YoY and in line with the analyst expectations. The company reported 11.8 billion hours engaged, up 22% YoY.

RBLX reported 53.1 million daily active users in April and 3.8 billion hours engaged.

We remained focused on delivering our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors, said CEO David Baszucki. Over the past two quarters, we have launched a number of notable innovations including spatial voice and layered clothing that will continue driving user growth, engagement and monetization.