Roblox stock falls on lower-than-expected November user numbers

A child looks back at a banner for Roblox, displayed to celebrate the company’s IPO, on the facade of the New York Stock Exchange (NYSE) in New York, March 10, 2021.

Brendan McDermid | Reuters

Shares of Roblox more than 12% off the Wednesday after the company’s release November Index, which shows a drop in daily active users since October.

The video game company reported 49.4 million daily active users in November. Although the number is up 35% from the same period last year, in the first 27 days of October, the company reported 50.5 million daily active users. It faced an outage from October 28 to October 31, causing a drop in DAUs, as well as a loss of US$25 million in reservations.

“Based on management’s commentary on Q321 earnings, including October performance, the results were slightly below our expectations and appear to be,” Stifel analysts said. follows a historical trendline, whereby November typically has modest sequential gains over October,” Stifel analysts said in a note.

KeyBanc analysts said the drop could extend into December and negatively affect fourth-quarter totals.

“Considering management has also said December is about 80% larger than October/November levels, we believe this means that the Q4 numbers are likely to decline in time,” KeyBanc said. coming,” KeyBanc said in an investor note. “We previously looked at around $800 million in reservations for Q4,” but if that trend holds, “would look closer to $780 million. Our model is under review.” “

Roblox says the estimated average number of bookings per daily active user is between $4.21 and $4.27, or down 8% to 9% year over year. At the same time, estimated pre-orders for November are between $208 million and $211 million, up 22% to 24% year-over-year.

– Michael Bloom of CNBC contributed to this report.

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Sarah Ridley

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