On Wednesday, Roblox, once hailed as the "Metaverse's premier stock," unveiled its second-quarter results, which fell short of expectations. The company reported a loss of $282.8 million, up from a $176.4 million loss in the same period of 2022. Earnings per share were down to -$0.46, slightly below analysts' forecast of -$0.45.
Roblox highlighted that its daily active users reached 65.5 million, a 25% increase year over year. However, the average booking revenue per daily active user was $11.92, marking a 3% decline. The quarterly booked revenue amounted to $781 million, slightly under the anticipated $785 million.
Moreover, users collectively spent over 14 billion hours on Roblox during the second quarter, a 24% increase year over year.
While Roblox continues its efforts to expand its user base and diversify its revenue streams, the company anticipates ongoing losses in the foreseeable future. The increased net loss compared to the previous year was attributed to the "elevated expense levels needed to support business growth," including corporate administrative expenses, developer exchange fees, infrastructure, and personnel costs.
Following the release of its financial results, Roblox's stock price took a hit, dropping by 21.4% during the day's trading.
Though Roblox is historically known to be popular among teens and children, the company has been striving to increase its adoption across all age groups. Last June, Roblox announced that eligible creators could design experiences containing mature content (such as specific forms of violence, romantic themes, and moderate crude humor) for users aged 17 and above.
In a letter to shareholders on Wednesday, the company mentioned growth in daily active users across all age brackets and regions. During the quarterly call with investors, Roblox CEO David Baszucki stated that users between the ages of 17 and 24, as well as those over 25, consistently had higher hourly bookings compared to other age groups.
Despite the disappointing second-quarter performance, Roblox remains optimistic about its future.
Earlier this month, Baszucki shared a post on X (formerly known as Twitter), claiming that Roblox had well over a million downloads on Meta Quest within just five days of its release.
In Wednesday's call, Baszucki emphasized the company's focus on performance and interpersonal interaction, ensuring users find familiar experiences across different platforms.
"I believe there's a tremendous opportunity in delivering immersive experiences on VR and more platforms," he said.
