Keep an eye on Roblox (RBLX).
The stock is down more than $8 a share in pre-market.
All after the company said daily active users fell by 1% from 43.3 million month over month. Year over year, that number is up 28%. Hours engaged were 3.2 million, up 9% year over year, and 1% month over month. Plus, revenue is estimated to be between $149 million and $151 million, up 123% to 126% year over year. In addition, Roblox was the top grossing mobile game in the first quarter, according to research firm App Annie.
While there are fears of a gaming slowdown post-pandemic, there are no signs.
With mobile games, for example, “As the pandemic continues, mobile gameplay is showing no signs of slowing down. Users downloaded 30 percent more games in the first quarter of this year than in the fourth quarter of 2020, before the vaccine rollout, which as App Annie indicates, is over one billion games a week. As mobile games continue to be the primary driver of growth in digital game consumption, the biggest leaps in spending are seen in North America and Western Europe,” as reported by The Hollywood Reporter.
In addition, Take-Two Interactive CEO Strauss Zelnick, as quoted by GameSpot, says “Interactive entertainment is now the number one entertainment vertical in terms of revenue, and I guess people still don’t fully realize that. And a good deal of that growth was driven by people either discovering or rediscovering interactive entertainment and its social aspects during the pandemic. And what we’ve found is that while certain trends should be expected to moderate, that shift is permanent.”
Plus, year to date consumer spending on video games is up to $24 billion – up 17% year over year. For full-year 2021, Newzoo estimates gamers will spend up to $175.8 billion on games this year. While that’s down 1% year over year, the gaming industry is on fire.