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Roblox stock slides after company reports decline in users and their spending

A child looks back at a banner for Roblox, displayed to celebrate the company’s IPO, on the front facade of the New York Stock Exchange (NYSE) in New York, March 10, 2021.Brendan McDermid | ReutersRoblox shares fell as much as 7% in after-hours trading Tuesday after the company reported a decline in users and their spending on the gaming platform in May.The company said daily active users for May were 43 million, down 1% from the 43.3 million DAUs it reported for April. Still, DAUs were up 28% from May 2020. Roblox said average bookings per DAU are estimated to be between $5.02 and $5.09, which would be down as much as 3% from a year ago.The company said its users spent 3.2 billion hours in the game in May and revenue is estimated to be between $149 million and $151 million.Roblox’s business relies on players buying digital items in the game, which is free to download and start playing. It’s available on multiple platforms, including iPhones and Android devices, and is most popular with children and teenagers.Roblox went public in a direct listing in March and has a market cap of more than $50 billion.

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