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 10% off on Wednesday after company 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. Despite a 35% increase from the same period last year, this is down from the first 27 days of October. , as the company reported 50.5 million daily active users. Roblox faced an outage from October 28 to October 31, which resulted in a drop in daily active users, as well as a loss of $25 million in pre-orders.
“Based on management commentary with Q321 earnings including October performance, the results came in slightly below our expectations and appears to be following a historical trendline, whereby November typically has modest sequential gains over October,” Stifel analysts said in a note on Wednesday.
KeyBanc analysts say the drop could extend into December and affect Q4 totals.
“Considering management has also said that December is about 80 percent larger than October/November levels, we believe this to be the case,” KeyBanc said in a note to investors on Wednesday. That means the fourth quarter figure is likely to decrease in the near future.” “We were previously looking at around $800 million in reservations for Q4 but if those trends hold, it now looks to suggest closer to $780 million. Our model is being tested. consider.”
Roblox says the estimated average number of bookings per daily active user is between $4.21 and $4.27, or an 8% to 9% drop from the same period last 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.
