Breaking News
0

Roblox Sinks on Weak Q2 Results, Analyst Cautious on Scale and Profitability Runway

Stock Markets Aug 10, 2022 08:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
RBLX
+6.23%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic

 

Shares of Roblox (NYSE:RBLX) are down almost 15% in premarket Wednesday trading after the internet company reported disappointing results.

Bookings came in at $639.9 million to miss on the consensus of $657.2 million. Daily active users were reported at 52.2 million, again lower than the estimate of 54 million. Roblox also reported a loss per share of 30c on revenue of $591.2 million, up 30% YoY.

The company also expects to see revenue of $205 million to $208 million for July, as well as bookings of $243 million to $247 million. Daily active users for July are seen at 58.5 million, up 26% YoY.

A Morgan Stanley analyst remains Equal Weight-rated on RBLX stock but he hiked the price target to $32 from $25.

“We remain cautious on RBLX's scale and profitability runway from here as margin compression continued in 1Q despite reaccelerating bookings. We expect investments in the developer base/new hiring to stay elevated into next year as we lower '23 EBITDA by 11%,” he told clients.

A JPMorgan analyst added:

“Roblox reported Q2 results and its latest monthly metrics, which highlighted y/y improvements across DAUs, bookings, and hours per DAU per day in June and then July.”

Roblox Sinks on Weak Q2 Results, Analyst Cautious on Scale and Profitability Runway
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email