Gaming platform Roblox Corp (NYSE:RBLX) saw its share price dive in after-hours trading as it missed expectations in its latest earnings.
The stock lost more than 15% following the release of its fourth quarter results, which revealed growth slowed through the final quarter of 2021.
Revenues in the form of bookings of US$770mln represented 20% growth on Q4 2020, below a target of US$772mln. Net loss per share was US$0.25 compared with a flagged loss of US$0.13, according to Refinitv.
Bookings refer to the game’s virtual currency "Robux", which players use to upgrade players' avatars by buying in-game items like clothing and accessories.
The company’s daily active users increased 33% to 49.5mln, slightly below an expected figure of 50.5 million.
The metaverse-skewed company showed growth expectations in the sector may be premature after Meta Platforms Inc (NASDAQ:FB)'s (Facebook) share price crash earlier this month.
Roblox’s slowdown reflects a wider trend of underwhelming growth for the stay at home companies. Netflix Inc (NASDAQ:NFLX) saw its share price contract in January as the number of subscribers added to its platform slowed.
But other streaming services, including The Walt Disney Company (NYSE:DIS)'s Disney + service, have been able to buck the trend through the addition of new content and growth from a relatively low base.
Roblox enjoyed share price growth of 72% in the two weeks following third quarter 2021 (Q3 2021) earnings, before gains were wiped out in December and January.
The latest earnings-induced tumble left the company's share price at a pre-markets level of $US62.05, after closing yesterday at US$73.30.