Roblox Corp (NYSE:RBLX) shares tumbled around 12% after the California-based gaming platform popular among children reported a larger-than-expected quarterly loss.
The company attributed the wider loss to higher expenses related to developer exchange fees, personnel costs, and infrastructure investments.
In the first quarter, the company's net loss attributable to common stockholders was $268.3 million, or $0.44 per share, compared to a net loss of $160.2 million, or $0.27 per share, in the same period last year.
However, Roblox reported net bookings of $773.8 million, surpassing the $631.2 million recorded a year ago and slightly exceeding analyst expectations of $765.9 million.
The loss comes as Roblox has been actively expanding its user base through collaborations with renowned entities such as NFL, FIFA, and artists like Elton John and Mariah Carey.
Roblox stated that it anticipates significant increases in operating expenses in the coming periods as it continues to invest in the growth of its business.
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