May 10 Reuters Roblox Corp posted a largerthanexpected quarterly loss on Wednesday, hurt by higher expenses to support the expansion of its business, sending the company39;s shares down 12 in premarket trading.

Californiabased Roblox said higher expenses due to developer exchange fees, personnel costs and infrastructure were the reason behind the bigger loss.

Roblox, which is among the world39;s most popular gaming sites for children, has been constantly investing to expand its user base by doubling down on collaborations with NFL, FIFA and artists such as Elton John and Mariah Carey.

We also expect our operating expenses to increase significantly in future periods, the company said, adding it intends to continue to make investments to grow its business.

Net loss attributable to common stockholders was 268.3 million, or 44 cents per share, in the reported quarter, compared with net loss of 160.20 million, or 27 cents per share, a year earlier.

However, the company posted net bookings of 773.8 million in the first quarter, compared with 631.2 million a year earlier. Analysts were expecting net bookings of 765.9 million, according to Refinitiv data.

Reporting by Yamini Kalia and Tiyashi Datta in Bengaluru; Editing by Krishna Chandra Eluri

Source Reuters