Roblox Issues Subpar Outlook, Stock Tanks To Yearly Low

Zinger Key Points
  • Roblox bookings rise to $923.8M, surpassing estimates: Stock nears 52-week low despite fiscal growth.
  • Roblox user engagement grows: DAUs up 17% with 16.7 billion hours engaged, stock falls sharply.

Roblox Corp RBLX stock plunged after it reported fiscal first-quarter 2024 bookings growth of 19% year-on-year to $923.80 million, beating the analyst consensus estimate of $922.98 million.

Adjusted EPS loss of $(0.43) beat the analyst consensus loss estimate of $(0.53). The stock almost touched its 52-week low price of $24.88.

Also Read: Roblox Studio Boss Addresses Children Making Money On The Platform: ‘They Didn’t Feel Exploited’

The revenue of the American video game developer grew by 22% Y/Y to $801.3 million. 

Average Daily Active Users (DAUs) were 77.7 million, up 17% Y/Y. Hours Engaged were 16.7 billion, up 15% Y/Y.

The average monthly unique payers were 15.6 million, up 13% year over year. The Average Bookings per DAU (ABPDAU) was $11.89, up 2% year over year. 

Roblox generated $238.9 million in operating cash flow as of March 31, 2024.

Outlook: Roblox expects second-quarter bookings of $870 million—$900 million (versus the consensus of $934.09 million) and fiscal 2024 bookings of $4.00 billion—$4.10 billion (prior $4.14 billion—$4.28 billion) versus the consensus of $4.19 billion.

Analysts had flagged their expectations from partnerships that Roblox forged. The company had tapped Integral Ad Science Holding Corp  IAS to expand access to immersive video ads for all advertisers. It also collaborated with PubMatic, Inc PUBM

 to drive sales of video ads on the platform.

Price Action: RBLX shares traded lower by 28.3% at $27.95 premarket at the last check Thursday.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceTop StoriesMoversTechBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!