Roblox (RBLX) earnings report Q1 2023

Roblox Shares rose 3% in premarket trading Wednesday after the video game company reported First quarter financial results.

Here’s how the company did:

• share loss: 44 per cent loss versus 40 per cent expected loss, according to a Refinitiv poll of analysts.
• Revenue (Bookings): $774 million versus the projected $766 million, according to Refinitiv.

The revenue number is what Roblox calls bookings. Includes sales recognized during the quarter and deferred revenue.

Its daily active users, or DAUs, averaged 66 million, up 22% year-over-year. Engagement hours totaled 14.5 billion, up 23% year-over-year. Both DAU and engagement growth saw the largest increases among Roblox’s international segments and categories of 13 and over. Both of these numbers are all-time highs for Roblox.

On a conference call with an analyst following the earnings report, CEO and founder David Paszucki attributed the bookings growth to “eight quarters of innovation and great engineering.”

In its earnings statement, the company said: “While the number of users of all ages is also growing, older users continue to contribute more, with users between the ages of 17 and 24 growing by 35% in the first quarter of 2023 compared to the first quarter of 2023.” 2022″.

The company reported a net loss of $268 million for the quarter, or a loss of 44 cents per share, compared to a net loss of $160.2 million, or a loss of 27 cents per share, in the year-ago quarter.

Amid a broader decline in technology and staffing spending, the company indicated that it is comfortable with its current headcount and compensation levels, given the “momentum we’re seeing in bookings.” Roblox saw adjusted revenue or bookings grow by 23% year over year.

“We can now begin to slow our annual increases in headcount and compensation expenses,” the company said in its earnings release, with bookings growth expected to outpace compensation growth beginning in the first fiscal quarter of 2024 and beyond.