Shares of video game developer Roblox Corporation (RBLX) are falling more than 8% Wednesday morning after the company reported a wider than expected third quarter loss.
Loss in the third quarter widened to $297.8 million or $0.50 per share from $74 million or $0.13 per share in the same quarter a year ago.
Analysts on average, polled by Thomson-Reuters expected the company to report a loss of $0.33 per share for the quarter.
Meanwhile, quarterly revenue increased 2% year-on-year to $517.7 million, and bookings jumped 10% year-on-year to $701.7 million
The company said in the third quarter its estimated paying user life changed from 25 months to 28 months. Based on the carrying amount of deferred revenue as of June 30, 2022, the change resulted in a decrease in revenue of $111.0 million for the latest quarter.
RBLX, currently at $35.96, has traded in the range of $21.65-$141.60 in the last 1 year.
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