Roblox Corp. said it expects to see losses in the “foreseeable future” as demand for the company’s popular game begins to slow down from pandemic highs.
The company reported a 3% decrease in bookings of $631.2 million, well below $645 million as expected by analysts, during the first quarter of the year. Bookings are what Roblox calls its revenue figure including sales recognized during the quarter and deferred revenue.
Roblox shares went down 3.8% in extended trading.
The website, which is a popular gaming platform for children, has started to lose steam as the easing of pandemic restrictions has allowed kids to spend more time away from screens.
Total hours spent on the platform rose 22% from last year to 11.8 billion this year’s first quarter, although hours spent in North America saw a decline as the region started to almost fully scrap COVID-19 restrictions.
“… We expect to continue to report net losses for the foreseeable future even as we anticipate generating net cash from operating activities,” Roblox said in a letter to shareholders.
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