Roblox shares fall 12 after company releases March update

Roblox shares fall 12% after company releases March update

  • Roblox shares plunged 12% on Monday after the gaming company released its March 2023 metrics report, which showed it expects average bookings per daily user to fall year over year.
  • According to the report, estimated bookings for the month ranged from $247 million to $255 million, up 23% to 27% year over year.
  • The number of daily active users increased by 26% from March 2022 to 66.2 million users.

A child looks back at a banner for Roblox displayed to celebrate the company’s IPO on the front facade of the New York Stock Exchange (NYSE) in New York March 10, 2021.

Brendan McDermid | Portal

Roblox shares plunged 12% on Monday after the gaming company released its March 2023 metrics report, which showed it expects average bookings per daily user to fall year over year.

Roblox’s estimated average bookings per daily active user ranged from $3.73 to $3.85 in March, reflecting a -2% to +1% change from the same period a year ago.

Estimated bookings ranged from $247 million to $255 million for the month, up 23% to 27% year over year.

Roblox calls its sales figures bookings. The company generates revenue from the sale of its virtual currency called Robux, which players can use to dress up their avatars and buy other premium features in the games. The number of daily active users increased by 26% from March 2022 to 66.2 million users.

Roblox also said it will stop publishing monthly reports on key metrics. “While we believe this has provided investors with additional information about the seasonal nature of the business, we have decided to discontinue providing key monthly metrics to align our reporting cadence with our value of taking a long-term perspective,” it said.

Roblox shares are up more than 60% year-to-date.