The Clap
Roblox (NYSE: RBLX) stock collapsed after the company reported a larger-than-expected Q3 loss.
The Deets
The company recorded a loss per share of 50 cents, larger than the expected loss of 35 cents per share.
The loss was largely driven by a 40% increase in costs. In addition, the video game sector as a whole has experienced slowing growth as spending behavior changes.
So What
The company’s user base increased by 24% YoY during the quarter, reaching 58.8 million daily active users.
Now What
The company will slow down the hiring rate in the coming year in order to combat the challenges faced during the quarter.
