Roblox’s Q2 results are out and while revenue was up significantly on even last year’s pandemic boosted figures, it couldn’t match expectations and the company continues to be loss making.
Revenue for the popular gaming platform increased by a huge 127 per cent to $454.1m, with bookings up by 35 per cent year-on-year to $665.5m. That comes alongside DAUs being up to 43.2m across the quarter, an increase of 29 per cent year on year, with growth outside north america being posted at 42 per cent, and with 46 per cent growth in the over 13 market, as it’s player base continues to engage as it grows older.
All good signs for the platform and its creators.
Despite the gains, the net loss for Q2 was still $140.1m. That loss is double what it was for the previous year’s Q2, with Roblox spending rising steeply in terms of infrastructure and developer fees understandably, but it also more than doubled its spending on R&D, while ‘general and administrative costs soared by 5x.
“Our continued growth demonstrates the importance of our mission and the power of our platform,” said David Baszucki, Chief Executive Officer of Roblox. “These results are fueled both by our creator ecosystem and by the millions of people around the globe who want to connect and share new experiences every day on Roblox.”
“In the quarter ending June 30, 2021, cash from operations and free cash flow continued at record levels. The third quarter is off to a strong start with our highest levels of users and engagement to date,” said Michael Guthrie, Chief Financial Officer of Roblox. “We will continue to invest in our developer community, hire top engineering talent, and build out the infrastructure required to scale Roblox globally.”
The results did fall short of expectations though, with shares dipping in value from $83.70 to $79.90 following their announcement. There was a brief rally, but at the time of writing have slipped back again to $75 overnight.