Gaming metaverse operator Roblox (NYSE:RBLX) will be reporting results tomorrow before market open. Here’s what to expect.
Roblox beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $893.5 million, up 31.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and solid growth in its users. It reported 79.5 million daily active users, up 21.4% 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 24% year on year to $884.1 million, slowing from the 37.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.39 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at Roblox’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Electronic Arts delivered year-on-year revenue growth of 5.8%, beating analysts’ expectations by 2.3%, and Netflix reported revenues up 15%, in line with consensus estimates. Netflix traded up 11.1% following the results.
Read our full analysis of Electronic Arts’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 6.3% on average over the last month. Roblox is down 1.4% during the same time and is heading into earnings with an average analyst price target of $46.82 (compared to the current share price of $42.94).
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