Roblox Reports Higher Q1 EPS, Revenue Declines

Roblox stock slid after the firm announced its Q1 data, which missed estimates and had lower yearly booking projections.

On Thursday’s closed trading, the California-based company’s stock significantly declined by -22.06% to $30.42 per stock. In contrast, the gaming platform recovered some losses in the pre-market session by increasing 1.68% to $30.93 apiece.

Its earnings per share were -$0.43, higher than analysts’ -$0.53 forecast and the previous quarter’s -$0.52.

Roblox revenue dipped to $801.30 million from $1.13 billion in the last quarter, but higher than the $769.00 million consensus.

However, the gaming platform revealed another net loss of $270.60 million in Q1, which equates to $0.43 per share – this was lower than the $308.40 million analysts had projected. The decline was similar to 2023’s $268.30 million or $0.44 per share.

According to the data, the gaming firm’s bookings surged by 19.00% to $923.80 million from the previous $773.80 million report but slid slightly from the $928.60 million consensus.

Meanwhile, Roblox’s average daily active users were 77.7 million for the first quarter, which is 17.00% better than last year.

Despite a year-over-year increase in daily active users and hours engaged, the company observed an unseasonal dip in engagement across various demographics and platforms during Q1.

Baszucki Reveal Shifts Strategy to Recover Q2 Guidance

According to the firm’s CEO, David Baszucki, their teams have been working hard to discover opportunities to lead daily active users, as well as hours and bookings to recover.

Roblox is seeking solutions as its second-quarter guidance has been muted since the virtual gaming platform’s shares have plummeted significantly.

Moreover, Baszucki said that they started testing with fees in their artificial intelligence (AI)-led discover algorithm and the positioning of several contents on their Homepage.

The firm also relaunched app events like The Hunt: First Edition as they continue to enhance their platform’s quality and performance for better user experience.

Furthermore, the CEO revealed that they want to be transparent, conservative, and accountable, which led to their decision to adjust their guidance report.