Roblox showed substantial growth in the last three months of 2021, but missed estimates causing a precipitous drop in its stock price.

The gaming and virtual environment platform saw Q4 revenue escalate 83% year-over-year to $568.8 million. Full-year revenue for the company, which went public in March 2021, more than doubled to $1.9 billion.

• Daily active users reached 54.7 million in January, up 32% year-over-year.
• Bookings grew 20% in Q4 to $770.1 million but showed signs of slowing in January, growing 2% to 3% year-over-year from $220 million to $223 million.
• Those two figures missed estimates, and the company’s stock plummeted around 26% on Wednesday.

“Our absolute numbers have continued to grow,” said CEO David Baszucki, but “growth rates have declined as we are comparing, in some cases, to quarters last year in which certain key metrics doubled or even nearly tripled.” 

NFL Enters Metaverse

Major sports brands have turned to Roblox as they look for metaverse real estate.

Earlier this month, Roblox announced a partnership with the NFL on a team-building game called “NFL Tycoon,” which allows players to pick rosters, customize stadiums, and more.

The league was already enmeshed with Roblox after opening a virtual merchandise store within the platform in November 2021.

That same month, Nike launched “NIKELAND” within Roblox, where users can play games and browse products.

Centene Corp. entered a 15-year naming rights deal for St. Louis City SC’s new $461 million venue — now called Centene Stadium.

Financial terms were not disclosed, but the deal could bring in revenue of $3 million to $5 million annually, according to the St. Louis Post Dispatch.

The St. Louis-based healthcare provider’s agreement expands on its relationship with the city.

• Centene will become the founding partner of the team.
• The entities will help develop health and wellness community programming in the region.
• The company holds naming rights to the NHL’s St. Louis Blues’ Centene Community Ice Center as part of a 10-year deal that started in 2019. At the time of the announcement, it was believed the facility would deliver a $20 million economic impact each year.

The 22,500-person venue will open later this summer ahead of the team’s debut in 2023.

Mega MLS Money

The league has seen a slew of interest in the past few years and is reportedly eyeing a $300 million annual media rights deal — more than three times its previous one. Last year, the San Jose Earthquakes confirmed it entered a 10-year, $20 million naming rights deal with PayPal.

MLS will add its 28th team — Charlotte FC — this year, and recently announced Las Vegas as the home of its 30th.

Despite stiff competition from the sports betting industry’s largest market, New Jersey broke its own state record with $143.7 million wagered on Super Bowl LVI. 

The record total from the Los Angeles Rams’ 23-20 win over the Cincinnati Bengals — which includes online and retail — was up 22.4% from the $117.4 million bettors shelled out for the Tampa Bay Buccaneers’ 31-9 win over the Kansas City Chiefs last year.

New Jersey reached the milestone despite an influx of sports bettors in neighboring New York who wagered on a Super Bowl for the first time. In January, the Empire State handled more than $1.6 billion in its first month of legal sports betting — a single-month record for any state.

Super Bowl LVI provided other states with record handles thanks to the growth of legal sports betting throughout the U.S. 

• Nevada reported a record handle of $179.8 million, a 32% uptick year-over-year.
• Illinois took in $60.5 million for the game, up $15 million compared to Super Bowl LV. 
• Montana saw $700,000 sift through its sportsbooks, a 41% increase year-over-year. 

Sunday’s game also created a lucrative opportunity for bettors in New Jersey, as the net win by operators in the state decreased 33% from last year to $7.8 million.

Familiar Territory

New Jersey is familiar with setting records. Last year, the Garden State reported a record handle of $10.9 billion in 2021, up from a previous total of $6 billion in 2020.