Roblox Corporation (RBLX) Options

Roblox (NYSE:RBLX) Exceeds Q3 Expectations, Stock Jumps 17.6%

Max Juang
Thu, October 31, 2024 at 6:25 AM MDT 5 min read

https://finance.yahoo.com/news/roblox-nyse-rblx-exceeds-q3-122504073.html

Gaming metaverse operator Roblox (NYSE:RBLX) announced better-than-expected revenue in Q3 CY2024, with sales up 28.8% year on year to $919 million. On the other hand, next quarter’s revenue guidance of $947.5 million was less impressive, coming in 2.1% below analysts’ estimates. Its GAAP loss of $0.37 per share was also 3.2% above analysts’ consensus estimates.


Roblox (RBLX) Q3 CY2024 Highlights:
Bookings: $1.13 billion vs analyst estimates of $1.02 billion (10.8% beat)

Revenue: $919 million vs analyst estimates of $884.1 million (3.9% beat)

EPS: -$0.37 vs analyst estimates of -$0.38 (3.2% beat)

EBITDA: $54.96 million vs analyst estimates of $149.8 million (63.3% miss)

Revenue Guidance for Q4 CY2024 is $947.5 million at the midpoint, below analyst estimates of $968.2 million

EBITDA guidance for the full year is $135 million at the midpoint, below analyst estimates of $667 million

Gross Margin (GAAP): 25.9%, up from 22.4% in the same quarter last year

Operating Margin: -30.4%, up from -42.1% in the same quarter last year

EBITDA Margin: 6%, down from 11.4% in the same quarter last year

Free Cash Flow Margin: 23.7%, up from 12.5% in the previous quarter

Daily Active Users: 88.9 million, up 18.7 million year on year

Market Capitalization: $27.92 billion

“Roblox’s exceptional Q3 results demonstrate the strength of our platform and the effectiveness of our growth strategies. We’re particularly proud of the progress we’ve made in empowering creators, fostering social connections, and expanding our global reach. As we look ahead, we remain committed to building the world’s largest social platform for play, and we’re confident that our continued innovation and focus on safety will drive long-term value for our shareholders and the broader Roblox community,” said David Baszucki, founder and CEO of Roblox.

Company Overview
Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system.

Video Gaming
Since videogames were invented in the 1970s, they have gradually taken more share of entertainment time. Ubiquitous mobile devices have powered a surge in “snackable” games that can be played on the go. Over time, games have developed more social engagement features where friends can play games together over the internet. The business models of games publishers have become less volatile due to digitization of distribution, in game monetization, and like Hollywood, an increasing dependence on surefire hit franchises. Covid driven lockdowns accelerated adoption and usage of videogames – a trend that has not slowed.

Sales Growth
A company’s long-term performance can give signals about its business quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Roblox grew its sales at an exceptional 26.5% compounded annual growth rate. This is encouraging because it shows Roblox’s offerings resonate with customers, a helpful starting point.

Roblox Total Revenue
This quarter, Roblox reported robust year-on-year revenue growth of 28.8%, and its $919 million of revenue topped Wall Street estimates by 3.9%. Management is currently guiding for a 26.3% year-on-year increase next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 19.9% over the next 12 months, a deceleration versus the last three years. This projection is still noteworthy and shows the market sees success for its products and services.

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User Growth
As a video gaming company, Roblox generates revenue growth by expanding both the number of people playing its games as well as how much each of those players spends on (or in) their games.

Over the last two years, Roblox’s daily active users, a key performance metric for the company, increased by 21.6% annually to 88.9 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its platform's popularity is exploding.

In Q3, Roblox added 18.7 million daily active users, leading to 26.6% year-on-year growth. The quarterly print was higher than its two-year result, suggesting its new initiatives are accelerating user growth.

Revenue Per User
Average revenue per user (ARPU) is a critical metric to track for consumer internet businesses like Roblox because it measures how much revenue each user generates, which is a function of how much paying users spend on its games.

Roblox’s ARPU growth has been subpar over the last two years, averaging 1.6%. This isn’t great, but the increase in daily active users is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Roblox tries boosting ARPU by taking a more aggressive approach to monetization, it’s unclear whether users can continue growing at the current pace.

This quarter, Roblox’s ARPU clocked in at $10.34. It grew 1.7% year on year, slower than its user growth.

Key Takeaways from Roblox’s Q3 Results
We enjoyed seeing Roblox increase its number of users this quarter. We were also excited its revenue, bookings, and EPS outperformed Wall Street’s estimates. On the other hand, its full-year revenue and EBITDA guidance missed analysts’ expectations. Overall, this quarter was softer due to the weaker guidance, but the market seems very excited about the 10%+ bookings beat (bookings also accelerated from 22% year-on-year growth last quarter to 34% this quarter). The stock traded up 17.3% to $50.62 immediately following the results.

I can receive PMs though, only can't respond rightaway.Will touch base with you friday during Happy Hour anyway. For me, it's not the $ amount of paid membership that is stopping me,it's just that I'm trying to be disciplined and focussed.Thanks

What I have to give you is worth its weight in plutonium. There is no I-hub board for that stock yet.

lol,no! I do much better with the mega/large caps. But wholly agree that the microcaps have the BIG moves %wise. Used to play only the micros earlier but found the bigger caps are safer. So basically, my strategy has been approx 60/40 in the biggies/smallies. As for Ihub, I used to be a paid member few years ago, but realized that it made me distracted from actual trading/learning(the tempting overdose of posting/replying to irrelevant issues wasted a lot of precious trading time,I felt).This way I have the right dose of meassage boards,haha!

Dude, you should stick with the micro caps, those are the ones where we make our bread and butter $$$ stocks under $5.00. You should get a paid membership to I-hub, it's only $12.99 a month. I have a gem of a sleeper trading 60 cents and I can PM you the ticker :)

Thanks sub.RBLX has always been a volatile trading stock,been a repeat for me for the past almost 2 years now. Buy on dips,it always comes back. I grabbed the minute I saw the negative report this morming at avg 37.60, not too worried about the CFO leaving(SEC filing says "As previously reported, on August 1, 2024"), might be old news and already baked in.

IMHO it's very overpriced and that 8k with the CFO leaving concerns me, I would be very cautious here.

CNBC been having segments on RBLX Hindenburg report since PM,one just going on now.
Almost back at $40 now!

Grabbed some in PM, the report not very convincing.But what do I know,lol!
RBLX has just rebuuted the Hindenburg report,let's see where this goes

Hindenburg Goes Short on Roblox, Alleging Massive Fraud

•Claims inflated user numbers and financial misconduct

•Cathie Wood’s $ARKK fund exposed—Roblox is 4th largest holding

•Investors brace for volatility as allegations unfold

https://hindenburgresearch.com/roblox/

RBLX new 52 week high

Cathie Wood & Ark Invest's Buys 13,432 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | August 26, 2024

• Cathie Wood and Ark Invest's trade activity from today 8/26.



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Cathie Wood & Ark Invest's Buys 26,951 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | August 23, 2024

• Cathie Wood and Ark Invest's trade activity from yesterday 8/23.



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Cathie Wood & Ark Invest's Buys 12,657 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | August 21, 2024

• Cathie Wood and Ark Invest's trade activity from today 8/21.



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29.30 https://x.com/READY_2_PROFIT/status/1819001515891102144

$RBLX Double inside days in a tight pennant formation is a SUPER juicy setup
By: TrendSpider | July 29, 2024

• $RBLX Double inside days in a tight pennant formation is a SUPER juicy setup.



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Cathie Wood & Ark Invest's Sells 88,545 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | July 19, 2024

• Cathie Wood and Ark Invest's trade activity from today 7/19.



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Cathie Wood & Ark Invest's Buys 19,238 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | June 14, 2024

• Cathie Wood and Ark Invest's trade activity from today 6/14.



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Cathie Wood & Ark Invest's Buys 17,615 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | June 13, 2024

• Cathie Wood and Ark Invest's trade activity from today 6/13.



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Cathie Wood & Ark Invest's Buys 37,265 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 30, 2024

• Cathie Wood and Ark Invest's trade activity from today 5/30.





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Cathie Wood & Ark Invest's Buys 3,526 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 29, 2024

• Cathie Wood and Ark Invest's trade activity from today 5/29.



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Cathie Wood & Ark Invest's Buys 57,271 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 16, 2024

• Cathie Wood and Ark Invest's trade activity from today 5/16.



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Cathie Wood & Ark Invest's Buys 50,012 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 15, 2024

• Cathie Wood and Ark Invest's trade activity from today 5/15.





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Cathie Wood & Ark Invest's Buys 55,710 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 14, 2024

• Cathie Wood and Ark Invest's trade activity from today 5/14.





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Cathie Wood & Ark Invest's Buys 224,064 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 13, 2024

• $SPX seemingly range bound between 0.75 and 1.0 std dev. Waiting to see signs of direction.





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Cathie Wood and Ark Invest just said this about Palantir $PLTR
By: Ark Invest Daily | May 10, 2024

• Cathie Wood and Ark Invest just said this about Palantir $PLTR

“We believe Palantir's differentiated AI products remain well positioned to accelerate the core business operations of both commercial enterprises and government agencies”



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Damn near 30%discount why not. Shorts will cover soon enough

Cathie Wood & Ark Invest's Buys 1,724,213 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 9, 2024

• Cathie Wood and Ark Invest's trade activity from today 5/9.





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Might not be the only one;)

Cathie Woods Buying down here RBLX

Cathie Wood & Ark Invest's Buys 318,776 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | May 3, 2024

• Cathie Wood and Ark Invest's trade activity from today 5/3.



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$RBLX ROBLOX is about to head to $48+ well in theory if .618 is held at 33.50 and change, then 60.93 is likely by July!

TipRanks has the average analysts predictions at around $50, which is also a key level at $48-$50

https://www.tradingview.com/chart/RBLX/lGF8L64U-ROBLOX-About-to-head-to-48-over-1-2-Months/

Info and Educational Purposes Only! CandlestickNinjaTV on YT/Rumble for more!

Roblox Stock Bounces Back After Bull Note
By: Schaeffer's Investment Research | April 23, 2024

• J.P. Morgan Securities upgraded RBLX to "overweight"

• The stock is down 20.4% in 2024, making for an intriguing entry point

Shares of Roblox Corp (NYSE:RBLX) are 5.2% higher at $36.79 at last glance, following a bull note from J.P. Morgan Securities. The analyst upgraded the video game stock to "overweight" from "neutral" and hiked its price target by $7 to $48, citing significant monetization opportunities and compounding free cash flow.

Up 11.2% over the last six months, RBLX still sports a 20.4% year-to-date deficit. A recent rally attempt was thwarted by the security's 100-day moving average.

Coming into today, the brokerage bunch was mostly bullish, but there's room for some pessimism to unwind. This is because eight of the 23 covering brokerages rate Roblox stock a "hold" or "strong sell."

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$RBLX: If CPI comes in tame tomorrow, here is a rate sensitive stock that should be on your radar!
By: Markets & Mayhem | April 9, 2024

• $RBLX If CPI comes in tame tomorrow, here is a rate sensitive stock that should be on your radar!



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Cathie Wood & Ark Invest's Buys 3,495 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | April 5, 2024

• athie Wood and Ark Invest's trade activity from today 4/5.



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Cathie Wood & Ark Invest's Buys 59,883 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | April 4, 2024

• Cathie Wood and Ark Invest's trade activity from yesterday 4/4.



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Cathie Wood & Ark Invest's Buys 18,647 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | April 2, 2024

Cathie Wood and Ark Invest's trade activity from yesterday 4/2.





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Cathie Wood & Ark Invest's Buys 26,388 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | April 1, 2024

• Cathie Wood and Ark Invest's trade activity from yesterday 4/1.





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Cathie Wood & Ark Invest's Buys 2,592 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | March 27, 2024

• Cathie Wood and Ark Invest's trade activity from today 3/27.





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Cathie Wood & Ark Invest's Buys 30,754 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | March 26, 2024

• Cathie Wood and Ark Invest's trade activity from today 3/26.





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Cathie Wood & Ark Invest's Buys 740,115 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | March 25, 2024

• Cathie Wood and Ark Invest's trade activity from today 3/25.





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Cathie Wood & Ark Invest's Buys 222,789 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | March 22, 2024

• Cathie Wood and Ark Invest's trade activity from today 3/22.





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Cathie Wood & Ark Invest's Buys 72,278 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | March 4, 2024

• Cathie Wood and Ark Invest's trade activity from today 3/4.



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Roblox $RBLX reported earnings highlights
By: Evan | February 7, 2024

• Roblox $RBLX just reported earnings

EPS of -$0.52 beating expectations of -$0.56
Revenue of $749.9M missing expectations of $757.8M



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Roblox Reports Fourth Quarter and Full Year 2023 Financial Results
Strong year over year growth in Daily Active Users, Hours Engaged, Revenue, and Bookings

February 07, 2024 08:00 AM Eastern Standard Time

SAN MATEO, Calif.--(BUSINESS WIRE)--Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its fourth quarter and full year 2023 financial and operational results and issued its full year and first quarter 2024 guidance today. Separately, Roblox posted a letter to shareholders and supplemental materials on the Roblox investor relations website at ir.roblox.com.

“We ended the year with our strongest rate of quarterly bookings growth in two years and delivered our first quarter of $1 billion in bookings. We are scaling our operations efficiently, thereby improving our margins and cash flow, and we expect those trends to continue in 2024”

Fourth Quarter 2023 Financial, Operational, and Liquidity Highlights

Revenue was $749.9 million, up 30% year-over-year.
Bookings were $1,126.8 million, up 25% year-over-year.
Net loss attributable to common stockholders was $323.7 million.
Net cash provided by operating activities was $143.3 million, up 20% year-over-year.
Average Daily Active Users (“DAUs”) were 71.5 million, up 22% year-over-year.
Average monthly unique payers were 15.9 million, up 18% year-over-year, and average bookings per monthly unique payer was $23.65, up 6% year-over-year.
Hours engaged were 15.5 billion, up 21% year-over-year.
Average bookings per DAU was $15.75, up 3% year-over-year.
Net liquidity1 was $2.2 billion; Covenant Adjusted EBITDA2 was $259.6 million, up 42% year-over-year.
Full Year 2023 Financial, Operational, and Liquidity Highlights

Revenue was $2,799.3 million, up 26% year-over-year.
Bookings were $3,520.8 million, up 23% year-over-year.
Net loss attributable to common stockholders was $1,151.9 million.
Net cash provided by operating activities was $458.2 million, up 24% year-over-year.
DAUs were 68.4 million, up 22% year-over-year.
Average monthly unique payers were 14.5 million, up 17% year-over-year, and average bookings per monthly unique payer was $81.05, up 4% year-over-year.
Hours engaged were 60.0 billion, up 22% year-over-year.
Average bookings per DAU was $51.50, flat year-over-year.
Covenant Adjusted EBITDA2 was $431.7 million, up 21% year-over-year.
“We finished 2023 with another strong quarter of growth as we continue to drive innovation and new experiences across the Roblox platform. We enter 2024 with even more conviction of being able to achieve our long-term goal of attracting over 1 billion daily active users with optimism and civility. We continue to benefit from the strong network effects in content, social connection, and communication, as well as our investments in immersive experiences, advertising, and AI,” said David Baszucki, founder and CEO of Roblox.

“We ended the year with our strongest rate of quarterly bookings growth in two years and delivered our first quarter of $1 billion in bookings. We are scaling our operations efficiently, thereby improving our margins and cash flow, and we expect those trends to continue in 2024,” said Michael Guthrie, chief financial officer of Roblox.

Forward Looking Guidance

Roblox provides its initial full year and first quarter 2024 GAAP and non-GAAP guidance:

Full Year 2024 Guidance

Revenue between $3,300 million and $3,400 million.
Bookings between $4,140 million and $4,280 million.
Consolidated net loss between $(1,400) million and $(1,365) million.
Adjusted EBITDA between $(150) million and $(115) million (A), which includes:
Increase in deferred revenue between $852 million and $892 million.
Increase in deferred cost of revenue between $(172) million and $(177) million.
The total of these changes in deferrals between $680 million and $715 million. (B)

(A) + (B) = Covenant Adjusted EBITDA2
First Quarter 2024 Guidance

Revenue between $755 million and $780 million.
Bookings between $910 million and $940 million.
Consolidated net loss between $(347) million and $(342) million.
Adjusted EBITDA between $(55) million and $(50) million (A), which includes:
Increase in deferred revenue between $158 million and $163 million.
Increase in deferred cost of revenue between $(33) million and $(35) million.
The total of these changes in deferrals between $125 million and $128 million. (B)

(A) + (B) = Covenant Adjusted EBITDA2(1)

Net liquidity represents cash and cash equivalents, short-term investments, and long-term investments, less the carrying value of long-term debt, net.(2)

Covenant Adjusted EBITDA is used in certain covenant calculations specified in the indenture governing our senior notes due 2030 and is not calculated in accordance with GAAP and may not conform to the calculation of Adjusted EBITDA by other companies. Covenant Adjusted EBITDA should not be considered as a substitute for a measure of our financial performance or other liquidity measures prepared in accordance with GAAP and is also not indicative of income or loss calculated in accordance with GAAP.

Roblox forecasts strong 2024 bookings; in-game spending gets holiday boost
Harshita Mary Varghese
Wed, February 7, 2024 at 6:07 AM MST·2 min read

https://finance.yahoo.com/news/roblox-forecasts-strong-2024-bookings-130730220.html

(Reuters) - Gaming platform Roblox forecast annual bookings above estimates on Wednesday after it crossed $1 billion in quarterly bookings for the first time on higher in-game spending during the holiday season, sending its shares up 15% before the bell.

In a positive sign for the gaming industry, the global video game market is anticipated to grow 2.8% this year, as it expects robust sales of Microsoft's Xbox and Sony's PlayStation 5 consoles, according to research firm NewZoo.

Roblox forecast annual bookings, generated from in-game purchases of virtual currency "Robux", between $4.14 billion and $4.28 billion, above the estimate of $4.03 billion, according to LSEG data.

Its first-quarter bookings forecast was also above expectations.

Net bookings for the fourth quarter came in at $1.13 billion, hitting a new record for the company and surpassing the estimate of $1.08 billion.

The company has been seeing an uptick in spending on its online gaming platform during the holiday quarter, when players have more time because schools and colleges are closed.

Roblox said the growth "continue to be heavily influenced by older users" above the age of 13.

"A slow and steady improvement in the core technology has allowed our developer communities to build better stuff... (which has) naturally attracted an older audience," Roblox CFO, Michael Guthrie said, underscoring Roblox's attempt at diversifying and aging up its player base.

Roblox which is popular for games such as "Brookhaven", "Adopt Me!" and "Blade Ball", has partnered with a number of brands including Adidas, Lamborghini and L'Oreal to engage fans in its 3D world.

The company reported adjusted EBITDA, a profitability metric looked at by investors, of $259.6 million, beating analysts' expectation of $191.2 million.

Average daily active users rose 22%, to 71.5 million in the fourth quarter.

Cathie Wood & Ark Invest's Sells 125,763 Shares of Roblox Corp (RBLX)
By: Ark Invest Daily | December 27, 2023

• Cathie Wood and Ark Invest's trade activity from today 12/27.



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Analyst Takes Bullish Stance on Roblox Corp (RBLX) Stock
By: Schaeffer's Investment Research | December 13, 2023

• Wells Fargo initiated coverage of RBLX with an "overweight" rating

• The stock is looking to open near levels not seen since July

Wells Fargo believes the potential revenue from advertising on Roblox Corp (NYSE:RBLX) is underappreciated by the market. The Wall Street analyst initiated bullish coverage of the video game concern with an "overweight" rating and a $49 price target.

In response, RBLX is up 2.3% premarket, looking to open at $43 area for the first time since July. This quarter alone, the equity has tacked on more than 45%, helping it to a 47.7% year-to-date lead.

Coming into today, the brokerage bunch was mostly bullish, but there's room for pessimism to unwind. This is because eight of the 21 covering brokerages rate Roblox stock a "hold" or "strong sell." What's more, the 12-month consensus target price of $41.88 is a slim discount to last night's close, indicating more price-target hikes could come around.

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