Roblox has released its financial results for the first quarter of 2022 and saw its revenue increase by 39 per cent compared with Q1 2021. Despite this, the firm's shares took a 10 per cent decrease, which it has since bounced back again, in the face of lowering engagement.
The platform’s Q1 revenue was $537.1 million this year, meanwhile hours of engagement grew by 22 per cent to 11.8 billion. At Q1 2021, Roblox’s revenue was notably lower at £387 million.
The growing revenue of the platform contrasts with Sensor Tower's recent report which showed mobile game revenue decreasing for first time ever in Q1 2022.
Roblox stocks took a 10 per cent dive in after-market trading on Tuesday but has since been rising again.
Its total liabilities and stockholders' equity have grown from $4.56 million to $4.72 million since the end of 2021, meanwhile bookings decreased by three per cent to $631.2 million from $652.3 million. The average bookings per daily average user were $11.67.
More dramatically, in April bookings were down between eight-10 per cent year-over-year at approximately $221.
Engagement in general is substantially down on the platform, as reported by Tech Times: seeing a reduntion of 40 per cent in the last month alone, and a whopping 82 per cent overall from its all-time high in 2021.
"We remained focused on delivering our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors," said Roblox CEO David Baszucki.
"Over the past two quarters, we have launched a number of notable innovations including spatial voice and layered clothing that will continue driving user growth, engagement and monetisation."
The company’s net cash provided by its operating activities totalled $156.4 million, with a free cash flow of $104.6 million. The estimated user life also increased during Q1, growing from 23 to 25 months.
Roblox recently lent its considerable weight behind Apple in the tech giant's legal conflict against Epic, stating the App Store provides "greater legitimacy" for users.