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Roblox Results Trail Expectations Big Time, Shares Slide

Revenue registered $454.1 million, more than doubling last year’s total, but way below the FactSet analyst consensus of $684.8 million.
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Roblox shares  (RBLX) - Get Roblox Report fell Monday, after the video game platform reported results for the second quarter that greatly lagged analysts’ expectations.

Revenue registered $454.1 million, more than doubling last year’s $200.392 million, but way below the FactSet analyst consensus of $684.8 million.

Roblox posted a net loss of $140.134 million, or 25 cents a share, in the latest quarter, widening from $71.521 million, or 40 cents a year ago. Analysts forecast profit of 12 cents a share for the latest quarter.

Roblox shares fell $3.82, or 4.5%, to $75.75 in after hours trading.  The stock fell 5% during the regular session Monday.

Roblox executives emphasized the positive.

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“Our continued growth demonstrates the importance of our mission and the power of our platform,” said Chief Executive David Baszucki, in a statement.

“These results are fueled both by our creator ecosystem and by the millions of people around the globe who want to connect and share new experiences every day on Roblox.”

During the quarter, Roblox saw daily active users outside the U.S. and Canada rise 42%, year over year. Daily active users over the age of 13 rose 46%.

Also, “In the quarter ending June 30, cash from operations and free cash flow continued at record levels,” said Michael Guthrie, chief financial officer.

“The third quarter is off to a strong start with our highest levels of users and engagement to date. We will continue to invest in our developer community, hire top engineering talent, and build out the infrastructure required to scale Roblox globally,” the company said in the statement.

Last month, Benchmark began coverage of Roblox with a sell rating and a $75 price target. It’s the first sell rating and the lowest target price on Wall Street, according to Bloomberg.