Roblox stock plummets 17% as key sales metrics unexpectedly fall again

Roblox stock plummets 17% as key sales metrics unexpectedly fall again

Roblox Corp. stocks tumbled in extended trading on Tuesday, after the video game company said a key revenue metric fell unexpectedly for a second straight quarter.

Roblox RBLX, -3.17%, reported a loss of $176.4 million, or 30 cents a share, for the second quarter compared to a loss of $140.1 million, or 25 cents a share, in the year-ago period. Revenue rose 30% to $591.2 million from $454.1 million in the year-ago quarter, but bookings fell 4% to $639.9 million from $665.5 million dollars in the same period last year.

Analysts had, on average, forecast a loss of 25 cents a share on bookings of $683.6 million. Analysts are focused on bookings for Roblox and other video game companies as it reflects more than just the revenue the company booked for the quarter.

The company defines postings as “revenue plus the change in accrued revenue during the period and other non-cash adjustments.” The importance of bookings comes into play as the company sells virtual currencies on its website, which can be viewed as deferred income.

Shares fell 17% in after-hours trading after closing down 3.4% in the regular session at $47.26.

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Average daily active users, or DAUs, were 52.2 million, up 21% from the same period last year. However, average bookings for each DAU fell 21% to $12.25.

Roblox shares also came under fire last quarter after the company reported an unexpected drop in bookings. Roblox stock posted its worst intraday performance since its IPO, according to that report, shedding more than a quarter of its value in one trading session after worse-than-expected results as once-stuck kids found other ways to spend their time.

The company said bookings were up 8% to 10% year over year in July, the first month of the third quarter. In their previous report, executives admitted that bookings were down in the first month of the second quarter.

“We are achieving record levels of users and engagement globally as we execute on our innovation roadmap and expand Roblox’s appeal across geographies and age groups,” Roblox CEO David Baszucki said in a statement. “We continue to make progress on key operational and product initiatives to increase the long-term value of the Roblox platform.”

Roblox shares are down 54% for the year, compared with a 14% decline in the S&P 500 index SPX -0.42% and a 20% decline in the tech-heavy Nasdaq Composite Index COMP -1.19%.