Roblox Posts Flat Bookings, Wider Losses, First Sequential Active Users Decline In Q2 2022
Roblox (NYSE: RBLX) reported on Tuesday its fiscal Q2 2022 financial results ended July 2022. The gaming company reported a flat bookings of US$639.9 million from Q1 2022’s US$631.2 million but a decline from Q2 2021’s US$665.5 million.
Revenue for the quarter however increased to US$591.2 million from last quarter’s US$537.1 million and from last year’s US$454.1 million. But with operating expenses higher than the topline figure, the firm ended with an operating loss of US$170.3 million, wider than the losses of US$151.6 million and US$142.9 million last quarter and last year, respectively.
This further contributed to a redder bottomline with US$178.7 million in net loss compared to US$162.0 million loss in the previous quarter and US$140.1 million loss in the year-ago period. This translates to US$0.30 loss per share.
Following the earnings release, the firm’s share fell as much as 9%.
“We are driving record levels of users and engagement globally as we execute on our innovation roadmap and broaden the appeal of Roblox across geographies and age groups,” explained CEO David Baszucki.
However, while the firm recorded a year-on-year growth in average daily active users at 52.2 million from last year’s 43.2 million, this is a decline from the previous quarter’s 54.1 million–its first sequential decline for the metric. Total hours engaged landed at 11.3 billion; while it’s a 16% year-on-year growth, it’s also a decline from last quarter’s 11.8 billion hours.
Calibrating for financial items, including the stock-based compensation of US$146.4 million (up from last quarter’s US$112.3 million and last year’s US$81.7 million), adjusted EBITDA for the quarter came in at US$54.6 million. This is a decline from both last quarter’s US$67.9 million and last year’s US$180.1 million.
“We remain focused on investing in strategic areas that we believe will drive platform growth and monetization,” said CFO Michael Guthrie.
The firm recorded a free cash outflow this quarter of US$57.3 million, down from last quarter’s positive US$104.6 million and last year’s US$168.0 million.
Further, the firm ended the quarter with US$3.08 billion in cash and cash equivalents. This puts the balance of the current assets at US$3.73 billion while current liabilities ended at US$2.26 billion.
Roblox last traded at US$47.25 on the NYSE.
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