Gaming metaverse operator Roblox (NYSE:RBLX) will be reporting results tomorrow before market open. Here’s what you need to know.
Roblox beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $919 million, up 28.8% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly. It reported 88.9 million daily active users, up 26.6% 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 29.1% year on year to $968.1 million, in line with the 29.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.44 per share.
Analysts covering the company have generally 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 six times over the last two years.
Looking at Roblox’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Electronic Arts’s revenues decreased 20.4% year on year, missing analysts’ expectations by 4.6%, and Alphabet reported revenues up 11.8%, in line with consensus estimates.
Read our full analysis of Electronic Arts’s results here and Alphabet’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 5% on average over the last month. Roblox is up 19.9% during the same time and is heading into earnings with an average analyst price target of $62.25 (compared to the current share price of $73.74).
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