Roblox Corporation (RBLX) shares plunged 11.86% in after-hours trading on Thursday, following the release of the company's second-quarter financial results and a disappointing forward outlook.
The gaming platform reported Q2 revenue of $1.47 billion, falling short of the consensus estimate of $1.6 billion. While earnings per share came in at a loss of $0.26, beating the expected loss of $0.37, the top-line miss and weak guidance overshadowed the bottom-line beat. For the third quarter, Roblox forecast bookings between $1.58 billion and $1.65 billion, well below Wall Street's estimate of $1.77 billion, according to data compiled by LSEG.
The company attributed the softer outlook to tougher age-verification measures that have weighed on user onboarding and engagement. “To date, the short-term impact from Kids and Select on engagement and bookings has been in line with our expectations, and we have seen an increase in age-check penetration in younger cohorts,” Roblox said. The company also anticipates a sequential increase in daily active users in Q3, but near-term headwinds from safety measures are expected to persist.
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