The to-be-reported quarter’s performance is expected to have benefited from robust growth in daily active users.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Roblox has an Earnings ESP of +19.23% and a Zacks Rank #3 (Hold).
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GamesBeat
Roblox Studio is, like the game, free. Developers can make money through Roblox with its Developer Exchange program, or DevEx, which gives developers 25 percent of a game’s earnings. (Part of Roblox ’s justification for this split is its huge investment in infrastructure for these devs.)
What is DevEx?/General Requirements
Roblox RBLX +3.87% stock was sinking after the videogame firm missed Wall Street's expectations for first-quarter adjusted revenue and reported a wider-than-expected net loss. Roblox (ticker: RBLX) reported bookings, a form of adjusted revenue, of $631.2 million, which was down 3% from the first quarter of 2021.
RBLX stock has a fair value of up to $60 assuming revenue growth slows steadily through 2025. In a bullish case, investors may set a higher revenue growth rate starting next year. By then, the company will have new tools on the platform.
Roblox reported having 32.6 million daily active users at the end of 2020, up 85% from the year-ago period. Revenue jumped 82% in the year to $924 million.
Investors lost confidence in Roblox (RBLX -3.64%) in the second month of 2022 after the company reported underwhelming revenue and user growth for the fourth quarter of 2021. According to data from S&P Global Market Intelligence, shares of the gaming platform dropped 21.7% in February.
A rebound in RBLX's shares is likely to happen in 2H 2022, when the company's bookings growth accelerate again benefiting from an easier base for comparison. But a recovery to the $70 price level is quite challenging considering the implied valuation multiples and the weakness in Roblox's US & Canada region.
Out of 15 analysts, 5 (33.33%) are recommending RBLX as a Strong Buy, 2 (13.33%) are recommending RBLX as a Buy, 6 (40%) are recommending RBLX as a Hold, 0 (0%) are recommending RBLX as a Sell, and 2 (13.33%) are recommending RBLX as a Strong Sell. What is RBLX's earnings growth forecast for 2022-2024?
Roblox revenue growth peaked in Q1 2021 at 140%. Over the course of 2021, as the tailwinds from the pandemic began to die down, traders and short-term speculators increasingly began selling stocks that benefitted from the pandemic and the selling eventually caught up to Roblox in late 2021 moving into 2022.
Today at 3pm, internet search giant Google announced its aquistion of startup game studio Roblox for a purchase price of 380 million dollars. Roblox is an online building game for kids.
For 2022, revenues are expected to be in the range of $203 million to $207 million per month. Using an estimated revenue run rate of $200 million per month, the full year forecast is $2.4 billion. This implies a growth rate of 26% from 2021. Another, positive factor is its ability to generate positive free cash flow.
It's not too late to buy Roblox, but more price-conscious investors may want to keep it on their watchlist to see if market volatility brings a more attractive entry point.
Roblox is seeing slowing usage and declining popularity. The company is also beginning to see worsening profitability, which is never a good sign.
S3 Partners estimates Roblox's short interest at 31.74 million shares shorted, or 10% of shares available for trading.
Roblox has not confirmed its next earnings publication date, but the company's estimated earnings date is Monday, August 15th, 2022 based off last...
In the previous quarter, Roblox (NYSE:RBLX) missed the analysts' consensus estimate of ($0.22) by $0.05 with a reported earnings per share (EPS) of...
The conference call for Roblox's latest earnings report can be listened to online. Listen to Conference Call
The conference call transcript for Roblox's latest earnings report can be read online. Read Transcript
Roblox's earnings report can be found in their filing with the SEC. View SEC filing
Roblox (NYSE:RBLX) has a recorded annual revenue of $1.92 billion.
Roblox (NYSE:RBLX) has a recorded net income of -$491.65 million. RBLX has generated -$0.90 earnings per share over the last four quarters.
Roblox's earnings are expected to decrease from ($1.06) per share to ($1.18) per share in the next year.
Roblox has confirmed that its next quarterly earnings report will be published on Monday, August 16th, 2021.
Roblox last released its quarterly earnings results on May 9th, 2021. The reported ($0.46) earnings per share for the quarter, missing analysts' consensus estimates of $0.13 by $0.59. The firm earned $387 million during the quarter, compared to the consensus estimate of $490.90 million. Its quarterly revenue was up 139.5% on a year-over-year basis. Roblox has generated $0.00 earnings per share over the last year. Roblox has not formally confirmed its next earnings publication date, but the company's estimated earnings date is Monday, August 9th, 2021 based off prior year's report dates.
The chart below shows up to four years of a company's earnings history. The dark blue line represents the company's actual earnings per share. The light blue area represents the range of Wall Street analysts' earnings estimates for each quarter.
The conference call for Roblox's latest earnings report can be listened to online. Listen to Conference Call
Wall Street is expecting fourth-quarter revenue to soar 148% year over year.
Investors should also focus on user engagement metrics. Last quarter, revenue bookings increased 28% to $637.8 million, average daily active users (DAUs) jumped 31% to 47.3 million, and hours engaged rose 28% to 11.2 billion.
Roblox Corporation price-consensus-eps-surprise-chart | Roblox Corporation Quote
Roblox’s fourth-quarter performance is expected to have benefited from growth in the company’s community of users and developers. This is expected to have driven sales of Robux, the currency used in Roblox, thereby aiding the top line. The company’s fastest-growing demographic is between 17-to 24-year-olds.
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Roblox has an Earnings ESP of +19.23% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Roblox trades on the New York Stock Exchange (NYSE) under the ticker symbol "RBLX."
Roblox Corporation develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that allows developers and creators to build, publish, and operate 3D experiences and other content. The company also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform. It serves customers in the United States, Canada, Europe, the Asia-Pacific, and internationally. Roblox Corporation was incorporated in 2004 and is based in San Mateo, California.
MarketBeat's community ratings are surveys of what our community members think about Roblox and other stocks. Vote “Outperform” if you believe RBLX will outperform the S&P 500 over the long term. Vote “Underperform” if you believe RBLX will underperform the S&P 500 over the long term. You may vote once every thirty days.
Roblox's lock-up period expires on Monday, September 6th. Roblox had issued 198,917,280 shares in its public offering on March 10th. The total size of the offering was $8,951,277,600 based on an initial share price of $45.00.
Roblox does not currently pay a dividend.