Roblox (RBLX) is expected to announce first fiscal quarter results on Wednesday, May 10, before market opens, with a conference call scheduled for 8:30 am EDT. What to watch for:
Click here to check out Roblox’s recent Media Buzz Sentiment as measured by TipRanks.
MARCH METRICS REPORT: Roblox released certain key metrics for the month of March. Daily active users, or DAUs, were 66.2M, up 26% year-over-year. Hours engaged were 4.8B, up 26% year-over-year. Estimated revenue was between $212M and $223M, up 15%-21% year-over-year. Estimated bookings were between $247M and $255M, up 23%-27% year-over-year. Estimated average bookings per daily active user were between $3.73 and $3.85, which represents a year-over-year change of down 2% to up 1%.
Commenting on the numbers, Stifel noted that Roblox’s March audience and engagement metrics were slightly ahead of the firm’s model, with the year-over-year growth rate accelerating versus January and February. At the same time, the firm, who made no change to its Buy rating, said bookings were in line, though "not good enough" to appease the market.
DA Davidson also kept a Buy rating and $55 price target on Roblox after the stock’s 12% decline following the company’s March bookings data. The firm noted that the estimated Q1 bookings were impacted by a 2% FX headwind, missing consensus by 0.5% but coming in 1.3% ahead of initial expectations. The stock is still up 40% year-to-date, and the selloff provides an entry point for those who had missed the run, Da Davidson told investors at the time.
Meanwhile on Monday, Roth MKM lowered the firm’s price target on Roblox to $37 from $45, while keeping a Neutral rating on the shares after its March metrics report. The company has also issued a strong growth outlook for Q1, but the guidance was "little less than previously anticipated," the firm tells investors in a research note. Roth MKM added that it continues to look for robust 20% growth in the first half of the year before more challenging comparisons begin to occur.
FAVORABLE NARRATIVE: Back in March, Jefferies upgraded Roblox to Buy from Hold with a price target of $48, up from $30. The firm said it sees a "favorable narrative" amid the company’s sales growth with margin inflection and an advertising option, supported by strong net bookings expansion and underlying user metrics. With regular rollouts of new user and creator features, Jefferies is "comfortable" that Roblox will grow through near-term competitor and macro pressures. It expects the company to remain among the fastest growing internet companies earning multiple expansion, higher estimates, and investor interest.
Published first on TheFly
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