Gaming metaverse operator Roblox (NYSE:RBLX) will be announcing earnings results tomorrow before the bell. Here’s what you need to know.
Roblox beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $988.2 million, up 31.8% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ number of daily active users estimates. It reported 85.3 million daily active users, up 19.3% year on year.
Is Roblox a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Roblox’s revenue to grow 25.1% year on year to $1.00 billion, improving from the 22.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Roblox has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Roblox’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 3.6%, and Alphabet reported revenues up 12%, topping estimates by 1.2%. Alphabet traded up 1.8% following the results.
Read our full analysis of Booking’s results here and Alphabet’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Roblox is up 8.7% during the same time and is heading into earnings with an average analyst price target of $68.30 (compared to the current share price of $66.32).
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