Roblox (NYSE:RBLX) shares rose more than 7% Wednesday after the online gaming platform company reported a 17% year-over-year increase in daily active users in May.
Roblox (RBLX) said it had 50.4M daily active users [DAU] in the month, while hours engaged climbed 10% from a year ago to 3.6B hours.
The company said it estimates that revenue in May grew between 28% and 30% from last year, to between $194M and $197M.
However, the online entertainment platform saw its bookings for the month decline 9% to 11% over the past year. Estimated bookings were between $196M and $199M, and negatively impacted by the strengthening of the U.S. dollar against other foreign currencies. Estimated average bookings per DAU was between $3.89 and $3.95, or a decline of 23% to 24% on a year-over-year basis.
April metrics released by the company showed bookings were down 8% to 10%, to between $221M and $224M, while daily active users rose 23% to 53.1M. The company said hours engaged rose 18%, to 3.8B and average bookings per DAU fell 25% to 26%, or to between $4.16 and $4.22 per user.
Recent Seeking Alpha analysis on the stock has been largely neutral, with one analysis by Juxtaposed Ideas noting that "Given the deceleration in user growth, bookings, and macro issues, we do not expect any stock recovery soon."
Roblox (RBLX) is also at high risk of performing badly, as per SA Quant Ratings.