roblox artwork

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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