Gaming metaverse operator Roblox (NYSE:RBLX) will be reporting earnings this Thursday before market hours. Here’s what to expect.
Roblox beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $1.04 billion, up 29.2% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly. It reported 97.8 million daily active users, up 25.9% 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 23.4% year on year to $1.10 billion, slowing from the 31.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.38 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 four times over the last two years.
Looking at Roblox’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Electronic Arts delivered year-on-year revenue growth of 32.4%, beating analysts’ expectations by 7.4%, and Shutterstock reported revenues up 21.3%, topping estimates by 7.5%.
Read our full analysis of Electronic Arts’s results here and Shutterstock’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.1% on average over the last month. Roblox is up 12.6% during the same time and is heading into earnings with an average analyst price target of $100.02 (compared to the current share price of $118.42).
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