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Roblox Corp (RBLX, $30.92) reported a larger-than-expected quarterly loss on Wednesday, as the gaming platform spent more on hiring and its infrastructure, overshadowing solid user growth and sending its shares down 17%. Growth has been slowing in the videogame sector this year as more people step outdoors and reserve spending for essential items in the face of the highest inflation in decades.
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In Q3, Roblox bookings were up by 10% year-over-year to $701.7 million, above the $686 million analysts expected. Daily active users were also up by 24% from the year-ago period to reach 58.8 million, but average bookings per daily active user fell 11% to $11.94. While Roblox beat estimates on several key metrics, the stock dropped as Wall Street reacted to Roblox’s larger-than-anticipated loss.