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Shares of Roblox Corp (NYSE: RBLX) are being punished this morning after the game developer said its loss widened in the fiscal second quarter.

Roblox stock down on a decline in ABPDAU

On the plus side, the California-based company ended the quarter with 65.5 million daily active users on average – up 25% on a year-over-year basis.

Hours engaged also jumped 24% to 14 billion. Michael Guthrie – the Chief Financial Officer of Roblox said today in the earnings release:

During Q2, we built plans that’ll enable us to generate operating leverage against infrastructure and trust & safety spend starting next quarter and against compensation expense starting Q1 of 2024.

Nonetheless, the New York listed firm saw a 3.0% annualised decline in its average booking per daily active user in Q2. Roblox stock has now lost nearly 35% in less than a month.

Key takeaways from Roblox’s Q2 earnings report

• Lost $283 million versus the year-ago $176 million
• Per-share loss also expanded from 30 cents to 46 cents
• Bookings climbed 22% year-on-year to $780.7 million
• Consensus was 44 cents loss and $787.4 million bookings

Roblox also revealed a 15% annualised growth in its quarterly revenue on Wednesday. According to its CEO David Baszucki:

We remain focused on extending our product leadership to drive value for creators and brands, and even more innovative and immersive avatars and experiences for our users.

The quarterly update arrives only days after Roblox launched in beta on Meta Platform’s Quest virtual reality headsets. Wall Street currently has a consensus “hold” rating on Roblox stock.

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