Roblox Shares Plunge 8% as Q2 Results Fall Short of Expectations

Shares of Roblox dropped by 8% in premarket trading following the release of its second-quarter results, which fell short of analysts' expectations in revenue and earnings. The company reported a loss per share of 46 cents, slightly worse than the anticipated 45 cents loss per share. Additionally, its revenue, referred to as bookings, amounted to $781 million, missing the expected $785 million, despite increasing by 22% compared to the previous year. Roblox's user metrics demonstrated growth, with 65.5 million average daily active users, marking a 25% increase from the prior year. Total engagement also rose, with users spending over 14 billion hours on the platform during the quarter, a 24% year-over-year increase. Despite the growth in user base and engagement, the company's average bookings per daily active user decreased by 3% year over year to $11.92.