Roblox (NYSE:RBLX) stock is sinking lower by more than 11% today after the company released its key metrics for March. Daily active users (DAUs) totaled 66.2 million, up by 26% year-over-year (YOY). In addition, the entertainment company estimated revenue of between $212 million and $223 million, a 15% to 21% YOY increase.
Meanwhile, bookings were estimated to be between $247 million and $255 million, up between 23% and 27%. Roblox added that foreign currency fluctuations led to an approximately 2% decline in revenue and bookings for the month. Finally, total hours engaged was 4.8 billion, up by 26% YOY.
These numbers look decent. So, why exactly is RBLX stock down so much? The culprit may be a potential decline in estimated average bookings per DAU (ABPDAU) and a halt in monthly metric reporting. ABPDAU tallied in at between $3.73 and $3.85, which signifies a yearly change between a reduction of 2% and a gain of 1%.
Roblox had the following to say in the report:
“We have now published monthly key metrics over our first eight quarters as a public company. While we believe that has provided incremental information to investors regarding the seasonality of the business, we have decided to cease providing key monthly metrics to align our reporting cadence with our value of taking the long view.”
The publishing of monthly metrics is not a requirement, so Roblox has full power to stop the release of these reports at its discretion.
5 Investors Betting Big on RBLX Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the fourth quarter, 536 13F filers disclosed a position in RBLX stock, a decline of 33 filers from the prior quarter. Among these filers, 16 own RBLX in their top 10 positions. Meanwhile, the institutional put/call ratio sits at 0.92, up from 0.91. That’s equivalent to 22.84 million puts and 24.78 million calls, implying a relatively neutral options stance. With that in mind, let’s take a look at the top five shareholders of the company:
- Altos Ventures Management: 78.67 million shares. Altos acquired 14,425 shares during Q4.
- David Baszucki, CEO: 63.31 million shares. Baszucki’s last ownership update during Q4 showed a sale of 375,997 shares.
- Morgan Stanley (NYSE:MS): 38.52 million shares. Morgan Stanley sold off 1.51 million shares during Q4.
- Vanguard: 30.99 million shares. Vanguard acquired 2.69 million shares during Q4.
- Baillie Gifford: 29.44 million shares. Baillie acquired 8.53 million shares during Q4.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
