On February 15, Roblox Corp. (RBLX) declared its financial results for the fourth quarter and full-year 2021. Consequently, the stock took a hit and plunged down in the after-hours on Tuesday.
During the regular trading session, the stock varied between a high of $73.71 and a low of $66.34. RBLX closed the session in the green on positive expectations for the earnings. At the close of the market, RBLX had a value of $73.30 with a gain of 7.29%. The day’s volume remained above average at 50.88 million shares. Following the results, the stock plunged down to $62.10 at an after-hours volume of 9.71 million shares. Hence, RBLX declined by a huge 15.28% in the after-hours on Tuesday.
The online gaming services provider, Roblox Corp. has a market capitalization of $39.55 billion. Currently, the company has 527.5 million shares outstanding in the market.
RBLX’s 2021 Results
For Q4 2021, the company’s revenue was $568.8 million, while it was $1.9 billion for the full year 2021. This shows an increase of 83% and 108% YOY, respectively.
Moreover, RBLX had a free cash flow of $77.3 million in Q4 and $558.0 million in fiscal 2021.
Furthermore, the company incurred a net loss of $143.3 million in Q4 2021, with $0.25 on a diluted share basis.
Additionally, DAUs increased by 33% and 40% YOY in Q4 and fiscal 2021, respectively, while the Hours Engaged were up by 28% and 26%.
January 2022
The company also provided key metric estimates for January 2022. For January 2022, the estimated revenue is $203 – $206 million with a 64% – 66% YOY increase. The DAUs increased 32% YOY to 54.7 million and Hours Engaged 26% YOY to 4.2 billion.
RBLX Company News
On February 10, Alo Yoga and RBLX announced the opening of “Alo Sanctuary” which is a virtual immersive wellness space for yoga and meditation. Further, for every user who fulfills quests through Roblox on the sanctuary, Alo will donate to mental health initiatives. Alo will be donating through its nonprofit foundation Alo Gives.
Just a day before this, on February 9, the company also announced the launch of NFL Tycoon on Metaverse with The National Football League. This makes NFL the first official major sports league to offer a persistent experience on RBLX.
Conclusion
While the company’s earnings report showed some good improvements and beat revenue, it missed the earnings expectations. Thus, the missed earnings resulted in the stock’s downfall in the after-hours on Tuesday.
