Shares of Roblox (ticker: RBLX) plummeted 13% to $33, as the company revealed a bigger quarterly loss compared to last year.
In the second quarter, Roblox reported a net loss of 46 cents per share, surpassing Wall Street's estimate of a 44-cent loss and marking an increase from the 30 cents loss reported a year ago.
Although bookings for the quarter reached $780.7 million, up from $639.9 million the previous year, it fell short of analysts' forecast of $787.4 million. Roblox defines bookings as revenue plus changes in deferred revenue during the period and other non-cash adjustments.
Roblox has outlined plans to improve operational efficiency and reduce expenses in the future. Michael Guthrie, the chief financial officer of the company, stated in the earnings report, "During the quarter, we also developed strategies that we believe will allow us to generate operating leverage against infrastructure and trust & safety expenditure starting next quarter and compensation expense starting in the first quarter of 2024."
It remains to be seen how these plans will play out for Roblox in the coming quarters.