A man photographs a Roblox banner displayed, to celebrate the company’s IPO, on the front facade of the New York Stock Exchange (NYSE) in New York, March 10, 2021.
Brendan McDermid | Reuters
The company said estimated bookings were between $222 million and $225 million for the month. That’s up 5% to 7% year over year. But, in November 2021, Roblox said estimated bookings during the same period grew 22% to 24% year over year. Roblox said the strength of the U.S. dollar against the euro and British pound impacted its business.
Roblox calls its revenue figure bookings. The company generates revenue from sales of its virtual currency called Robux, which players use to dress up their avatars and buy other premium features in the games.
Roblox’s average bookings per daily active user were between $3.92 and $3.97, down 7% to 9% from a year ago.
Overall daily active users rose 15% from November 2021 to 56.7 million users but, last year, the company reported 35% growth.
Roblox’s update comes amid broader weakness in the video gaming industry. Last month, Take-Two Interactive, the company behind games such as Grand Theft Auto, cut its outlook in the current quarter and for fiscal 2023, blaming “current macroeconomic conditions.”
“Our reduced forecast reflects shifts in our pipeline, fluctuations in FX rates, and a more cautious view of the current macroeconomic backdrop, particularly in mobile,” Take-Two CEO Strauss Zelnick said in a statement on Nov. 7.
In October, Apple also warned of weakness in digital advertising and gaming when it reported fourth-quarter earnings. “Specifically on Services, we expect to grow, but to be impacted by the macroeconomic environment, increasingly affecting foreign exchange, digital advertising and gaming,” Apple’s Chief Financial Officer Luca Maestri said on the company’s latest earning call.
Shares of Roblox are down about 73% year-to-date.
Image and article originally from www.cnbc.com. Read the original article here.