![]() ![]() Essentially, lower bookings imply lower future revenues, as Roblox doesn't immediately recognize sales when a player buys say $10 worth of Robux (Roblox's in-game currency). In May, bookings of $198 million were down 11% MoM and 9% YoY, and ABPDAU again was reduced $3.92, down 6% MoM and 23% YoY. In April, bookings of $223 million saw a back-to-back 9% YoY decline while ABPDAU of $4.19 was down 26% YoY. In short, Roblox was able to grow its user base in a post-pandemic world, but users were not spending as much on the platform as they once did (see table below).įollowing 1Q22 results, Roblox's metrics in subsequent months exhibited further signs of weakness. While hours engaged were up 22% YoY to 11.8 billion, average bookings per DAU (ABPDAU) saw a sharp 25% contraction from $15.48 in 1Q21 to $11.67. ![]() In 1Q22, Roblox's metrics began lapping insurmountable prior year comps, with bookings down 3% YoY to $631 million despite DAUs still grew 28% to 54.1 million. Like all businesses that benefited significantly from the pandemic, all good things must come to an end. That said, Roblox's stock almost doubled at one point during the fourth quarter of 2021 when Wall Street and Co. Understandably, growth across all business metrics leveled off throughout the next 6 quarters, with bookings reaching a record $770 million (+20% YoY) and DAUs expanding to 49.5 million (+33% YoY) in 4Q21. In 2Q20, the company saw quarterly bookings jumped 229% YoY to $494 million while daily active users (DAUs) increased by 95% YoY to 33.4 million. Roblox's business experienced parabolic growth as soon as the pandemic hit. As a result, I believe investors should treat the recent market rally as a selling opportunity given Roblox will likely continue to post disappointing results as the world returns to normalcy. While falling prices are indeed a strong 2H22 possibility and would suggest a favorable backdrop for long-duration assets, Roblox's fundamental prospects remain in question given the company was largely a pandemic-driven story. Shares of Roblox ( NYSE: RBLX) have rebounded some 48% from the June low of $24.70 as markets held onto the belief that inflation may have peaked. Ian Tuttle/Getty Images Entertainment Introduction ![]()
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