Roblox Stock Sinks After Earnings. Blame the Wider Loss.

Roblox
notched a bigger quarterly earnings loss than last year, driving down shares of the videogame platform on Wednesday.

Shares of Roblox (ticker: RBLX) were down 20%, to $30.37, in morning trading. The stock is volatile and tends to swing dramatically on earnings reports. It is currently on pace for its largest percentage decrease since Nov. 9, 2022, when it posted third-quarter results and fell 21%, according to Dow Jones Market Data.

The company posted a second-quarter net loss of 46 cents a share, compared with the 44-cent loss that Wall Street was expecting and the 30 cents recorded a year ago.

Bookings were $780.7 million, up from $639.9 million a year ago but far off analysts’ forecast of $787.4 million. Roblox defines bookings as revenue plus the change in deferred revenue during the period and other noncash adjustments.

“During the quarter, we also built the plans that we believe will enable us to generate operating leverage against infrastructure and trust & safety spend starting next quarter and against compensation expense starting in the first quarter of 2024,” said Michael Guthrie, chief financial officer of Roblox, in the earnings statement.

Write to Emily Dattilo at [email protected]

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