Roblox stock dips on lower than expected November user numbers
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The front façade of the New York Stock Exchange in New York (NYSE), March 10, 2021, features a Roblox banner that a child sees. It was displayed as IPO celebration.
Brendan McDermid | Reuters
This shares RobloxAfter the release of its annual report, Wednesday’s stock dropped more than 10% November metricsIt shows a decrease in daily active users since October.
In November, the videogame company had 49.4 millions daily active users. Although it is up 35% year over year, this number is down from October’s first 27 days, when 50.5 million users were reported daily. Roblox faced an outage between Oct. 28 and Oct. 31, which caused a decline in daily active users, as well as $25 million in lost bookings.
According to Stifel analyst’s Wednesday note, “Based on management’s comments with 3Q21 earnings and October performance,” results were slightly lower than our expectations. They also appeared to follow the historical trend line in which November usually experiences a slight sequential uptick in comparison to October.
Analysts at KeyBanc said that the decline could continue into December, and have an impact on Q4 results.
KeyBanc stated Wednesday that December was 80% bigger than October/November, and this implies that 4Q numbers will likely fall in the short term. KeyBanc sent investors a note on Wednesday. We had previously estimated that 4Q bookings would be approximately $800M. However, if these trends continue, it could indicate that the number is closer to $780M. “Our model is currently under review.”
Roblox estimates that average bookings per day for an active user were between $4.21-$4.27. That’s a drop of 8 to 9 percent year-over-year. The estimated November bookings were $211 million to $208 million. This is an increase of 22% and 24% over the previous year.
Michael Bloom from CNBC contributed to the report.
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