Roblox Corporation (RBLX) has reported that its daily active users (DAU) stood at 48.2 million in August, up 32% year-over-year and 4% from 46.6 million DAUs in July 2021. Similarly, hours engaged were recorded at 4 billion, up 32% year-over-year and 5% from 3.8 billion hours in July 2021.
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The company provides an online entertainment platform, where users can interact with each other to explore and develop immersive, user-generated, and 3D experiences.
Roblox expects bookings in August 2021 to yield between $219 million and $222 million, representing year-over-year growth of 29%-31%. Notably, revenues are expected to be in the range of $167-170 million, up 98%-102% year-over-year. (See Roblox stock chart on TipRanks)
Following the release, Truist Financial analyst Matthew Thornton maintained a Buy rating on the stock with a price target of $103, implying 25.4% upside potential from current levels.
The analyst noted that more than $217 million in bookings was required to be estimated by Roblox in August, in order to “feel good” about how Q3 bookings are tracking versus consensus.
Consensus among analysts is a Moderate Buy based on 6 Buys, 1 Hold, and 1 Sell. The average Roblox price target of $91.71 implies 11.6% upside potential. Shares have gained 18.2% over the past year.
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