We were impressed by Elton John’s new Roblox experience recently, but investors have been somewhat less impressed by the games platform’s latest financial results.
Roblox’s shares closed down 21% yesterday after its quarterly losses were greater than expected, even though many of its key metrics continue to show growth. Roblox posted revenues of $517.7m in Q3, up by 2% year-on-year. Its bookings – a metric tracking in-app purchases, which are only counted as revenue once that currency is spent – were up 10% to $701.7m.
Roblox also averaged 58.8 million daily active users during Q3, up 24% year-on-year, having added 6.6 million during the quarter. However, Roblox’s operating loss grew from $77.4m in Q3 2021 to $300m in Q3 2022.
The company’s market cap (value) was just under $78bn at its peak in November 2021, but closed yesterday at $18.45bn.
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