Roblox Sinks on Weak Q2 Results, Analyst Cautious on Scale and Profitability Runway
2022.08.10 15:50
Roblox (RBLX) Sinks on Weak Q2 Results, Analyst Cautious on Scale and Profitability Runway
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.”
