Roblox Corp posted a larger-than-expected quarterly loss on Wednesday, hurt by higher expenses to support the expansion of its business, sending the company's shares down 12% in premarket trading.

California-based 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 world'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.

  - Reuters