Roblox Corp (NYSE: RBLX) reported weaker-than-expected results for its fiscal first quarter on Tuesday. Interestingly, though, shares are still up nearly 20% this morning.
Roblox Q1 financial highlights
- Lost $160.2 million in Q1 versus the year-ago figure of $134.2 million.
- Per-share loss of 27 cents was better than last year’s 46 cents.
- Bookings fell 3.0% to $631.2 million, as per the earnings press release.
- FactSet consensus was for $68 million loss on $655.7 million in bookings.
- Ended the quarter with 54.1 million daily active users, up 28% YoY.
- Average booking per daily active user stood at $11.67 in Q1.
Hours engaged jumped 22% in the recent quarter and 13+ users made up 52% of DAUs. Last month, Roblox Corp was accused of deceptive marketing.
Q2 started on a strong note
According to Roblox Corp, it started the second quarter on a strong note with daily active users and hours engaged up 23% and 18%, respectively, in April. The video game company is also working on sponsored search options.
Beyond sponsored ads, we’re at the beginning stages of developing native and immersive advertising in the Roblox metaverse. We envision several new advertising units that we imagine as being complementary to our user experience.
Following the earnings report, Truist slashed its price target on Roblox Corp from $70 a share to $36 a share, which still represents a close to 30% upside from here. The stock is down 75% for the year.
The post Roblox shares jumped 20% despite weak Q1 results: how come? appeared first on Invezz.
Source: https://invezz.com/news/2022/05/11/roblox-shares-jumped-20-despite-weak-q1-results-how-come/