Shares of metaverse company Roblox plummet after missing fourth quarter expectations

KEY POINTS

• Roblox shares missed expectations on both the top and bottom lines.
• However, there were more than 49 million people playing the game each day, up 33% from last year.

Nike is teaming up with roblox to launch a virtual world called Niketown.

Source: Nike

Gaming company Roblox shares fell more than 11% in after-hours trading Tuesday after missing fourth-quarter expectations on both the top and bottom lines.

Here's how the company did versus expectations:

• Revenue (bookings): $770 million vs. $772 million expected, per Refinitiv consensus estimates
• Loss per share: 25 cents vs. 13 cents expected, per Refinitiv

The company also reported 49.5 million daily active users up 33% year-over-year.

Roblox makes an open gaming platform, which lets players create their own "worlds" where they can interact and play with others over the internet and was the first major company working on the metaverse to go public.

Roblox sells virtual currency to players, which is used to purchase digital items in the game. Roblox has also signed deals with several big brands in recent months, such as the NFL and Nike.