Roblox(NYSE:RBLX)shares plummeted as much as 15% in after-hours trading, Tuesday, as the social-gaming company reported fourth-quarter results that fell short of Wall Street's expectations.
Following the market close, Roblox (RBLX) reported a loss of 25 cents a share, and total bookings of $770.1 million, while analysts had forecast the company to lose 7 cents a share, and total bookings of $782 million. Despite falling short of estimates, Roblox's (RBLX) did improve from the same period in 2020, when the company lost 30 cents a share and bookings of $642.3 million.
Average Daily Active Users (DAUs) rose by 33% from a year ago, to 49.5 million, while total hours of engagement climbed to 10.8 billion, up 28% from the year-ago period.
Roblox (RBLX) known to millions of parents for the games that their kids purchase Robux to play, is considered to be a metaverse company due to its gaming environments that allow for the creation of "worlds" where gamers can interact with each other online.
On Monday, Bank of America analyst Omar Dessouky reinstated his coverage of Roblox (RBLX) with a buy rating and $84-a-share price target. Dessouky said Roblox is "concretely demonstrating for consumers, developers and merchants what the term [metaverse] means."