After the announcement of poorer-than-expected Q1 earnings, shares in Roblox (NYSE) plunged more than 10% post-market. However, shares are now trading at 0.5% and were green as of 06.50 EST.

It came in at $537.1million. This is 39% higher YoY than the $657.4 consensus. The loss per share was 27c, which is a decrease of 46c over the same period in last year. This compares to the negative 20c Street consensus.

Roblox recorded $631.2 Million in bookings. That’s 3.2% lower YoY, and less than consensus estimates at $633.3 millions. In the same period, 54.1 million users were active daily. This was 29% more than the analysts expected. It reported that 11.8 billion people were engaged in the company’s service, an increase of 22% YoY.

RBLX had 53.1 Million active users per day in April, and engaged 3.8 Billion hours.

“We remained focused on delivering our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors,” said CEO David Baszucki. “Over the past two quarters, we have launched a number of notable innovations including spatial voice and layered clothing that will continue driving user growth, engagement and monetization.”

Tyler Parker, KeyBanc analyst, commented on the following:

“With the near-term focus of the market, we see a need for Roblox to “prove it” with a return to growth in the coming months in order to shift sentiment in the right direction. We do think there’s potential this is an improvement story into the back half, but April’s trends don’t yet inspire confidence.”

Eric Sheridan from Goldman Sachs added:

“We expect that investors will be focused on the narrow messaging of how to think about April 2022 booking and DAU trends as an indicator of when the platform moves thru Q2 2022 and into easier growth comparisons. In terms of the earnings call, we expect key debates will be about Roblox’s investment in trust/safety, developer tools and forward platform elements to drive engagement, discovery and monetization.”

By Senad Karaahmetovic