Roblox stock drops 21% after missed expectations and rising costs

Roblox’s stock tumbled by over 20% since it announced its Q2 2023 financial results. While the company did increase bookings by 1% compared to Q1 to $780.7 million, this was not enough to offset missing analyst expectations for playtime and daily active users (DAUs).

Last quarter, Roblox users spent 14 billion hours on the platform. This fell short of analysts’ expectations of 14.4 billion hours of playtime. Similarly, DAUs fell about 1% to 65.5 million from last quarter. Analysts expected the company to achieve 65.8 million DAUs.