Roblox Shares Tumble After Reporting a Wider Loss as Expenses Grew

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published August 09, 2023
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Key Takeaways

  • Roblox's loss per share widened as costs to support the growth of business rose.
  • The second-quarter loss was more than in 2022, and also greater than estimates.
  • Roblox said it expects to post losses for the foreseeable future.

Roblox’s (RBLX) shares tumbled 20% in early trading on Wednesday as the online gaming platform’s second-quarter loss widened because of increased costs. 

Roblox posted a loss of 46 cents, up from 30 cents in 2022 and above the 45-cent drop analysts had expected. Bookings, which the company defines as revenue plus the change in deferred revenue during the period and other non-cash adjustments, rose 22% to $780.7 million, and that also missed estimates. Average bookings per daily active user fell 3% to $11.92.

Roblox indicated that faced “higher levels of expense required to support the growth of the business.” It pointed specifically to costs for developer exchange fees, personnel, infrastructure and trust and safety, and corporate overhead.

The company warned that it anticipates continuing to post a loss for the "foreseeable future.”

Shares of Roblox fell to their lowest level since January following the news.

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  1. Roblox. "ROBLOX REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS."

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