Leon Neal
Roblox (NYSE:RBLX) shares sank more than 8% in pre-market trading on Wednesday after the video game company reported mixed first-quarter results.
For the period ending March 31, Roblox (RBLX) lost 44 cents per share, while bookings came in at $773.82M, up 22.6% year-over-year. Analysts were expecting a loss of 39 cents per share and $765.37M in bookings.
The company added that its average daily active users during the period rose 22% year-over-year to 66.1M, while engaged hours rose 23% from a year-ago to 14.5B.
Revenue during the period was $655.3M, up 22% year-over-year and 24% on a constant currency basis.
Adjusted EBITDA clocked in at $53.1M, well below the $64.9M analysts were expecting.
In addition, Roblox (RBLX) said it would slow its headcount, infrastructure and compensation expenses as it continues to deal with economic uncertainty.
Michael Guthrie, Roblox’s Chief Financial Officer, said more future bookings are likely to come from credit cards and prepaid cards, which will “also have a positive impact on margins.”
The company is hosting a conference call at 8:30 a.m. EST to discuss the results.
More on Roblox and earnings
Image and article originally from seekingalpha.com. Read the original article here.