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Roblox plummets as it cuts full-year bookings forecast
https://www.msn.com/en-us/money/markets/roblox-plummets-as-it-cuts-full-year-bookings-forecast/ar-BB1m61dM?ocid=BingNewsSerp

Roblox (NYSE:RBLX) shares plunged more than 28% in premarket trading on Thursday after the video game platform company offered up a weaker-than-expected bookings forecast for the coming quarter and lowered it for the remainder of 2024.

San Mateo, Calif-based Roblox, which counts 9 to 12 year-olds as its largest demographic, expects second-quarter bookings to be between $870M and $900M, below the $902.5M estimate. Second-quarter revenue is forecast to be between $855M and $880M, above the $805.2M estimate.

It expects to lose between $265M and $267M on a net basis, better than the $345.5M that was expected.

The company also lowered its full-year bookings forecast, as it now sees the closely watched metric coming in between $4B and $4.1B, down from a prior outlook of $4.14B to $4.28N.

Despite the weak bookings forecast, Roblox raised its full-year sales outlook, as it now sees full-year revenue between $3.45B and $3.53B, up from a previous range of $3.3B to $3.4B. Analysts were expecting $3.36B.

It also upped its forecast for annual net loss on a consolidated basis, as Roblox now expects to lose between $1.04B and $1.1B, up from a prior view of $1.37B to $1.4B.

Free cash flow for the year is expected to be between $350M and $420M while adjusted EBITDA is forecast to be between $95M and $147M. The company said it will no longer refer to covenant adjusted EBITDA in its letter to shareholders and earnings releases.

First quarter results
Roblox lost $0.43 per share during the fourth-quarter, as bookings climbed 19.4% year-over-year to $923.8M. Analysts had expected a loss of $0.53 per share and $892.8M in bookings.

Revenue for the period came in at $801.3M, above the $769.3M estimate. Free cash flow for the period was $191.M.

Average daily active users rose 17% year-over-year to finish the period at 77.7M, above the 77.29M estimate. Monthly unique payers also climbed, up 13% year-over-year, to finish at 15.6M. Average bookings per monthly unique player rose 6% to $19.68.

Gamers continued to take to the platform, as hours engaged came in at 16.7B for the quarter, up 15% year-over-year, but below the estimate of 17.05B.

The company will host a conference call at 8:30 a.m. EST to discuss the results.