Roblox's stock faced a setback after revealing a financial loss for Q3 2022
In Brief
Roblox's stock plummeted approximately 17% post-announcement of a loss in the third quarter.
The platform reported an impressive 58.8 million daily active users on average, a 24% increase compared to Q3 2021, and the total hours spent on the platform surged by 20% to 13.4 billion hours.
Roblox reported a quarterly loss Despite a rise in the number of daily active users, share prices suffered a steep decline, marking the steepest drop in a single day since Roblox's debut in the public market in March 2021. The company invested heavily in hiring and upgrading its infrastructure.
Robox Roblox disclosed a loss of $297.8 million for Q3 2022 (equivalent to 50 cents per share), a stark contrast to its previous loss of $74.0 million (or 13 cents per share) in the same quarter the year prior. However, revenue saw an uptick reaching $517.7 million, up from $509.3 million last year. Bookings also rose 10% from last year's $637.8 million, hitting $701.7 million. Overall revenue increased by 2% year on year.
The California-based gaming giant noted a rise in average daily active users to 58.8 million, a 24% growth year on year and an increase from 52.2 million DAUs in Q2 2022. During the third quarter, users dedicated 13.4 billion hours to Roblox, reflecting a 20% annual growth.
This year has seen a slowdown in the gaming sector's expansion, primarily due to the lifting of lockdown restrictions that have allowed individuals to socialize in person again. Furthermore, the ongoing inflation crisis globally is another factor contributing to the underwhelming financial performances across various companies.
Roblox's current situation is better than the challenges faced by companies like Twitter, and they have announced intentions to recruit new staff. Meta David Baszucki, the CEO of the company, emphasized that Roblox will continue to develop groundbreaking technologies aimed at facilitating deeper engagement, communication, and self-expression to enhance the platform's overall value.
"We are thrilled about the growth in users, engagement, and bookings during the third quarter, which highlights the remarkable strides we are making in vital platform initiatives, such as targeting an older audience and expanding internationally. At the same time, we maintain a focused capital allocation approach aimed at maximizing the long-term value for our shareholders,\" he stated.
Meta has faced a steep decline: Q3 2022 earnings reveal significant losses within its metaverse division, Reality Labs.
said Michael Guthrie, Roblox’s CFO.
Read related posts:
Disclaimer
In line with the Trust Project guidelines Agne is a journalist focusing on the latest developments and trends in the metaverse, AI, and Web3 for Metaverse Post. Driven by a passion for storytelling, she has conducted numerous interviews with industry experts, always on the lookout for compelling narratives. Agne holds a Bachelor’s degree in literature and boasts an extensive writing background across various topics, including travel, art, and culture, in addition to volunteering as an editor for an animal rights organization to help raise awareness about welfare issues. You can reach her at
