Roblox CEO David Baszucki Says Reservations Are Turning Around
Roblox CEO David Baszucki told CNBC on Wednesday that the company is seeing bookings rebound in April after the company said earlier this week that they were down 3% in the March quarter.
Reservations are how the company describes sales of its virtual currency, Robux, which players use to purchase digital items such as avatars and other premium features.
Roblox is a virtual world game particularly popular with children that is played on phones, PCs and game consoles. Players can inhabit virtual worlds, play games, and even sell their creations to other players.
Baszucki told Jim Cramer in a “Mad Money” interview that bookings dropped in part because the company saw user engagement increase last year during the easing Covid pandemic.
“Mars was a very tough comparison. We were all locked down a year ago,” Baszucki said. “We’re happy that in April we saw that start to pick up. We think longer term we’ll see bookings start to catch up with user growth.”
After the closing bell on Tuesday, Roblox reported disappointing first-quarter results, prompting investors to sell the stock. It plunged 10% in after-hours trading on Tuesday. However, it closed Wednesday up nearly 3.4% in a major turnaround. While it’s unclear what exactly drove the rise, the company appeared optimistic about the current quarter’s growth rates.
Roblox posted a loss per share of 27 cents in the first quarter, which was bigger than expected. Revenue and daily active users also appeared. The company said it was optimistic about growth rates in the current quarter and that the summer could present an opportunity for growth.
Roblox is also starting to more seriously develop alternative sources of sales and new users for the virtual world, Baszucki said. As economies emerge from the pandemic, Roblox will push for new search features and easier brand partnerships and to increase the amount of user-generated content (UGC) sold on the platform.
“I think this quarter is the first time we’ve come out and said we’re going to get a little bit closer to the efficient frontier of our economy, both in terms of how we do research and discovery, the possibilities amazing how brands can bring in traffic, as well as our UGC catalog, which has huge economic activity,” he said.
One possibility in the future is that Roblox could be used to connect co-workers in a corporate environment, the Roblox CEO told Cramer. “One day we will use Roblox in our own office to stay connected as some of our employees are working remotely,” he envisioned.