Roblox shares down 20% after Q2 report

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.

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:

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:

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