The Roblox company’s losses stood at $336.6 million in the first half of 2022, according to the report.
Although revenue and engagement both increased, Roblox continued to lose money as the company released its financial results for the second quarter of 2022. The company reported a net loss of $176.4 million, well above the mark. $140.1 million loss the company announced in the same quarter last year.
Roblox CEO David Baszucki said the company is “driving user and engagement globally” as it moves forward with plans to expand Roblox’s appeal across different age groups and markets across the globe. world.
Average daily active users increased 21% year over year to 52.2 million, while engagement hours increased 16% to 11.3 billion. But this is the second quarter that Roblox has reported a drop in player count, an important metric for the company. The 4% drop is roughly in line with the 3% drop reported in Q1 2022.
Daily users also fell 21% year-over-year to $12.25, although this is an improvement from the average gamer deposit of $11.67 in the first quarter.
However, the company’s next quarter got off to a better start. Several key metrics were up in July, with around 26% gains reported for both revenue and daily active users. Plays also increased in July, increasing from 8% to 10%.
Roblox’s positive results for various gaming companies reflect the difficulties the companies are currently facing. Previously, experts warned of a recession in the gaming world as inflation reduced user spending.
California-based Roblox, best known for its Jailbreak and MeepCity games. According to Refinitiv data, the company expects to reach $644.4 million. Corey Barrett, head of TMT research at M Science, said: “We’ve seen impacts across the entire video game market due to changes in user discretionary spending, and that seems likely. more clearly in the free-to-play and mobile game genres”. Demand for gaming boomed during the pandemic and slowly dropped as restrictions eased.
While Take-Two Interactive Software Inc (TTWO.O) and Electronic Arts Inc (EA.O) forecast weak annual revenue, chipmaker Nvidia Corp (NVDA.O) also reported a drop in quarterly revenue due to The game business has stalled.