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Roblox (RBLX) to Report Q2 Earnings: What's in the Cards?

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Roblox Corporation (RBLX - Free Report) is set to release second-quarter 2021 results on Aug 16.

Roblox raised $520 million at a $29.5 billion valuation in a financing round led by Altimeter Capital and Dragoneer Investment Group. The company went public through direct listing and made its market debut on the New York Stock Exchange on Mar 10, 2021.

The consensus mark for revenues is pegged at $690.2 million. For the second quarter, the consensus mark for earnings has remained steady at 27 cents per share over the past 30 days.

Let’s see how things have shaped up for the upcoming announcement.

Roblox Corporation Price and EPS Surprise

Roblox Corporation Price and EPS Surprise

Roblox Corporation price-eps-surprise | Roblox Corporation Quote

Factors to Note

Roblox’s second-quarter performance is expected to have benefited from growth in the company’s community of users and developers, which is expected to have boosted sales of Robux, the currency used in Roblox, thereby driving the top line in the to-be-reported quarter.

On the Roblox gaming platform, users can express themselves through their personalized avatars, discover immersive worlds, and engage with others across the community.

Additionally, the coronavirus-led social-distancing practices are expected to have been a major growth driver in increasing the number of active users and hours spent in the to-be-reported quarter.

For the months of April and May, daily active users (DAU) were 43.3 million and 43 million, up 37% and 28% year over year, respectively. Hours engaged were 3.2 billion for April and May, up 18% and 9% year over year, respectively.

Moreover, the company is expected to have benefited from strong cash flow generated from Robux sales. Users spend Robux on experiences and items for their avatar, while developers and creators earn Robux by building experiences and items for users.

In the first quarter of 2021, average bookings per DAU (ABPDAU) was $15.48, an increase of 46% year over year. This upward trend is expected to have continued in the to-be-reported quarter. In April, ABPDAU was between $5.59 and $5.66, up 16%-17% year over year and 5%-6% sequentially from March 2021.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Roblox has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are a few companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release.

Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +42.09% and a Zacks Rank #1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canon, Inc. (CAJ - Free Report) has an Earnings ESP of +22.03% and a Zacks Rank #1, at present.

Iridium Communications Inc. (IRDM - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank #2 currently.

In-Depth Zacks Research for the Tickers Above

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Canon, Inc. (CAJ) - free report >>

Iridium Communications Inc (IRDM) - free report >>

Shopify Inc. (SHOP) - free report >>

Roblox Corporation (RBLX) - free report >>