Roblox Shares Tumble 24% Following Q4 Earnings

Roblox Shares Tumble 24% Following Q4 Earnings

Roblox (NYSE: RBLX) shares fell over 24% after reporting disappointing earnings on Tuesday afternoon, despite revenue rising 83% year-over-year.

The online gaming company reported an earnings loss of USD0.25 per share, compared to the expected loss of USD0.12 a share. Revenue amounted to USD770.12 Million, lower than analysts anticipated USD781.70 Million.

According to the company, it had 49.5 million daily active users throughout the quarter, a 33% year-over-year increase. Moreover, the company revealed that as of January there were 54.7 million daily active users, though those are considered part of Roblox Q1.

“With nearly 55 million daily active users, Roblox is increasingly an integral part of people’s lives,” Roblox CEO David Baszucki said in a statement.

“As we look ahead to 2022, we will continue to develop our technology to enable deeper forms of communication, immersion, and expression on our platform.”

Roblox is a gaming platform that lets players build their own interactive “worlds.” It was also the first big-name company, linked to the metaverse, to go public. The company sells virtual currency to players, which they can use to buy digital items within the game.

“We have so many opportunities to increase monetization on our platform,” Roblox CEO David Baszucki said on CNBC’s Squawk on the Street, in response to the earnings miss. “We’re not touching advertising, we’re not touching 3D immersive shopping. We’re being very gentle on monetization relative to quality user growth, creating a safe and civil platform, and driving our DAU numbers. So we are focused on user and engagement growth.”

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