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Roblox shares down 20% after Q2 report

on Aug 9, 2022
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  • Roblox reports weaker-than-expected bookings for its fiscal Q2.
  • Bryn Talkington discussed the Q2 report on CNBC's "Closing Bell".
  • Roblox shares tanked about 20% in extended trading on Tuesday.

Shares of Roblox Corp (NYSE: RBLX) are down nearly 20% in extended trading on Tuesday after the videogame company reported weaker-than-expected bookings for its fiscal second quarter.

Should you sell Roblox shares on the weakness?

The “bookings” picture was particularly disappointing since they were down in the prior quarter as well. Roblox, however, said the key sales metric was up 8.0% to 10% in July, suggesting things will likely improve moving forward.

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Having been a pandemic beneficiary, RBLX was up against very tough comps as well. On CNBC’s “Closing Bell: Overtime”, Requisite Capital’s Bryn Talkington said:

ABPDAU was down 21% but still growing long-term. Comps were really tough because everybody was out and about in the summer. Stock is well over 100% off its low. So, after the call, if it opens tomorrow off only 5% to 10%, I think it’s still a win for Roblox shareholders.

Roblox shares are now down 55% for the year.

Key takeaways from Roblox Q2 earnings report

  • Lost $176.4 million versus the year-ago $140.1 million
  • Per-share loss climbed from 25 cents to 30 cents
  • Revenue was up 30% from the same quarter last year
  • Bookings slid 4.0% year-over-year to $639.9 million
  • Ended with 52.2 million DAUs, up 21% YoY
  • Average booking per DAU tanked 21% to $12.25

FactSet consensus was 25 cents a share of loss on $683.6 million in bookings. In the earnings press release, CFO Michael Guthrie said:

We remain focused on investing in strategy areas that we believe will drive platform growth and monetisation. We have a tremendous opportunity as we continue to define the future of this new immersive co-experience category.

Wall Street currently has a consensus “overweight” rating on Roblox shares.