RBLX Reversal ?
Key points:
Shares crashed 23% in Wednesday morning trading to hit an all time low after the once-booming company missed on both ends with LPS of $0.25 (nearly double the $0.13 expected) on top of bookings that were up 20% to $770m, and revenues of $568.8m – FYI, bookings represent users committing to spend money, revenue represents money actually spent.
On the plus side, Roblox reported 49.5m daily active users, up 33% y-o-y. Now it needs to convert more of those users into bookings, which it earns when users buy “Robux” – a digital coin you can use to buy virtual items for their games.
“Nazi sex games” cast a dark shadow over the results. Yep, we really said “nazi sex games”. Earlier on Tuesday, a BBC headline hit the wires calling Roblox “the children’s game with a sex problem” after it was found that illicit activity is rife in some of the rooms on the platform.
Seems like it reversed around 43.00 - will see how it reacts to these level.
www.benzinga.com
Interesting Fact: Roblox’s in-game currency, Robux, has become reportedly worth more than the Russian Ruble following the country’s invasion of Ukraine. One Robux is worth approximately $0.0125 USD compared to the Ruble, which on Monday plummeted to $0.01 USD.
Good read.
Have a happy night.
