Roblox shares are getting whooped in the real world on Wednesday after disappointing earnings.
Shares of the gaming giant crashed 20% to $58 in pre-market trading — bringing the stock below its $64.50 direct listing price from March 2021 —as analysts voiced their concerns.
with the company's quarter.
The Roblox ticker page was the most visited on Yahoo Finance.
"Once stuck-inside kids and teens are now spending weekdays off their devices and out in the real world. The big picture monetization metrics were disappointing," said Jefferies analyst Andrew Uerkwitz.
Here is how Roblox performed compared to Wall Street analyst estimates for its most recent quarter:
Revenue: $568 million versus $604 million expected
Bookings: $770 million versus $786 million expected
Losses per share: $0.25 versus $0.11 expected
User growth in Q4 also barely missed expectations, with Roblox announcing 49.5 million daily active users, versus the 50.1 million Wall Street was looking for.
"Growth rates have declined as we are comparing, in some cases, to quarters last year in which certain key metrics doubled or even nearly tripled," Roblox pointed out in a letter to shareholders.
To Uerkwitz's point, January metrics were also underwhelming on a relative basis.
Revenue rose in a range of 64% to 66%, Roblox said, slowing from an 83% growth rate in the fourth quarter. Bookings rose a mere 2% to 3% in the month. Bookings had gained 20% in the fourth quarter.
"The question: Is monetization a canary or is engagement a sign of transitory issues?" Uerkwitz added.
Yahoo Finance tech editor Dan Howley contributed to this story.