On Tuesday, Roblox reported less-than-expected earnings for the first quarter as bookings — which include revenue, deferred revenue, and other adjustments — decreased 3% to $631.2 million.
The video game developer’s stock consequently dropped about 10%.
- Overall revenue has increased by 39% since the first quarter in 2021, for a total of $537.1 million.
- Average active users grew 28% compared with 2021.
In a statement, CEO David Baszucki said the company is “focused on delivering our innovation roadmap” and noted new products that the company has been working on in recent months, including Spatial Voice. According to Roblox, the feature “allows people to communicate in Roblox as naturally as they communicate in the physical world.”
A Similar Story
The tepid reaction to earnings is in fact a similar story to that of Roblox’s fourth quarter.
The company has developed a reputation as a trailblazer in the $800 billion metaverse space, which contributed to its rise in popularity.
In Q4, the company showed major growth — revenue jumped 83% year-over-year to $568.8 million — but still missed expectations, dropping the stock price.
