A child looks back at a banner for Roblox that was displayed on the facade of the New York Stock Exchange (NYSE) in New York on March 10, 2021 in celebration of the company’s IPO.
Brendan McDermid | Reuters
Roblox stock fell as much as 7% in after-hours trading Tuesday after the company reported a decline in users and their spending on the gaming platform in May.
The company said daily active users were 43 million in May, 1% less than the 43.3 million DAUs it reported for April. Nevertheless, the DAUs increased by 28% compared to May 2020. Roblox said the average bookings per DAU are estimated at $ 5.02 to $ 5.09, which is up to 3% less than a year ago.
The company said its users spent 3.2 billion hours in the game in May and revenue is estimated at between $ 149 million and $ 151 million.
Roblox’s business relies on players buying in-game digital items that are free to download and play. It’s available on multiple platforms, including iPhones and Android devices, and is the most popular among children and teenagers.
Roblox went public in March in a direct listing and has a market capitalization of more than $ 50 billion.