Roblox Shares Plummet On November Metrics – Analyst ‘Suprised’

Roblox (NYSE: RBLX) shares plummeted Thursday after the company reported its November metrics with bookings disappointing investors.

The estimated average bookings per daily active user (ABPDAU) came in between $3.92 and $3.97, down 7% to 9% year-over-year, with estimated bookings from $190 million to $193 million, rising 1% to 3% compared to the previous year. 

Roblox shares closed Thursday’s session down 15.7%.

The online gaming platform said the strengthening of the US Dollar against other currencies, such as the Euro, and British Pound, during 2022 has had an “adverse impact on bookings.”

“We estimate that the impact of foreign currency fluctuations led to a reduction of approximately 4-5% in the year-over-year growth rate for November bookings,” said Roblox.

Even so, daily active users increased 15% compared to last year to 56.7 million, while hours engaged were 3.9 billion, rising 10% year-over-year. In addition, the company estimates revenue was between $190 million and $193 million, up 1% to 3% year-over-year.

Following the report, Piper Sandler analyst Thomas Champion said Roblox's November metrics were generally below expectations, with daily active users and bookings missing Piper's estimates by 5%.

The analyst was a “little surprised” as he believed Roblox would benefit from more students in the US being home due to the worsening flu season. 

However, the analyst, who has an Overweight rating and a $50 price target on the stock, continues to see a long-term opportunity for Roblox, driven by daily active user growth, monetization upside to peers, and advertising as a catalyst in 2023.

Premarket Friday, Roblox shares have fallen further, down 1.4%.