Roblox Corp (NYSE: RBLX) slid about 8% in extended trading on Tuesday as it disclosed a decline in its daily active users (DAUs) in May. The news comes a week after music publishers sued Roblox in a $200 million copyright infringement lawsuit.
Roblox opened at $82.95 per share on Wednesday and is currently exchanging hands at $84.20 per share. Earlier in June, the stock almost touched a high of $100 per share.
Roblox forecasts up to $151 million of revenue
Roblox said it had 43 million DAUs last month – a 1.0% decline from April’s 43.3 million. Compared to May 2020, however, it still had 28% more daily active users. Average bookings per DAU, as per the American video game developer, are expected between $5.02 and $5.09, which would represent a year over year decline of 3%.
According to Roblox, number of total hours that users spent in the game last month stood at 3.2 billion. The associated revenue is likely to come in the range of $149 million to $151 million.
Roblox is a gaming platform that is free to download. Players, however, purchase a broad range of digital stuff within the game that makes up a source of revenue for the San Mateo-based company. Roblox is primarily popular in children and teenagers and is available on several platforms, including Android and iOS.
Roblox went public earlier this year in March via a direct listing on the New York Stock Exchange. It debuted at a per-share price of $69.50 and is currently up about 20%. At the time of writing, it is valued at a little under $50 billion.
Roblox CEO sees massive opportunity
The video game developer reported its first quarterly financial results as a public company in May that highlighted significant growth in revenue on an annualised basis. While the results were still weaker than expected, CEO David Baszucki said:
“The opportunity of what we’re building at Roblox is massive, and we will continue to make long-term investments as we build a human co-experience platform that enables shared experiences among billions of users.”
On a year over year basis, the NYSE-listed company’s average DAUs jumped 79% in Q1, hours engaged climbed by 98%, and average bookings were up 46%. In an interview with CNBC’s “Trading Nation”, Tradinganalysis.com founder Todd Gordon had expressed interest in Roblox last month.
The post Roblox falls 8% after reporting a dip in DAU for May appeared first on Invezz.
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