Roblox Corp (NYSE:RBLX) stock rose 4.04% (As on May 10, 11:13:51 AM UTC-4, Source: Google Finance) after the company reported first-quarter revenue that was well below expectations and provided a downbeat current-quarter outlook. The bookings increased 19% to $923.8 million but were below expectations of $930.4 million. On a bright note, free cash flow was up 133% to $191.1 million, well above the FactSet consensus of $55.7 million. Net loss attributable to common stockholders was $270.6 million, while consolidated net loss was $271.9 million. Adjusted EBITDA was $(6.9) million, which excludes adjustments for increases in deferred revenue and deferred cost of revenue of $127.6 million and $(32.9) million, respectively. Net cash and cash equivalents provided by operating activities was $238.9 million, up 37% year-over-year, while free cash flow was $191.1 million, up 133% year-over-year. Average Daily Active Users (“DAUs”) were 77.7 million, up 17% year-over-year. Average monthly unique payers were 15.6 million, up 13% year-over-year, and average bookings per monthly unique payer was $19.68, up 6% year-over-year. Hours engaged (“Hours”) were 16.7 billion, up 15% year-over-year. Capital expenditures are down nearly 50% in Q1 2024 compared to last year.

RBLX in the first quarter of FY 24 has reported the adjusted loss per share of 43 cents, beating the analysts’ estimates for the adjusted loss per share of 53 cents, according to the FactSet consensus. The company had reported the adjusted revenue growth of 22.3 percent to $801.3 million in the first quarter of FY 24, missing the analysts’ estimates for revenue of $918.8 million.

Meanwhile, the company has began experimenting with changes in the AI-driven discovery algorithm and the positioning of various content types on the Homepage. The company has reintroduced platform-wide events like The Hunt: First Edition. And, the company continued to improve the quality and performance of the app and experiences.

Looking ahead, the company expects second quarter revenue of between $855 million and $880 million, which is below the current FactSet consensus of $929.3 million. Bookings are projected to be between $870 million and $900 million, compared with expectations of $943 million.

For the full year, the company raised its revenue guidance to between $3.450 billion and $3.525 billion from between $3.3 billion and $3.4 billion, but cut its outlook for bookings to between $4 billion and $4.1 billion from between $4.14 billion and $4.28 billion.