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Roblox (RBLX) Q2 Earnings Miss Estimates, Revenues Rise Y/Y
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Roblox (RBLX - Free Report) reported second-quarter 2022 loss of 30 cents per share, missing the Zacks Consensus Estimate by 30.43%. The company had reported a loss of 25 cents per share in the year-ago quarter.
Revenues increased 30% year over year to $591.2 million, attributed to the company’s efforts to optimize long-term retention and engagement among consumers. The consensus mark for revenues was pegged at 635 million.
Net bookings decreased 4% year over year to $639.9 million, down from $665.4 million in the year-ago quarter.
Roblox Corporation Price, Consensus and EPS Surprise
Average Daily Active Users (DAUs) were 52.2 million, an increase of 21% year over year, driven by an overall increase in engagement on the Roblox platform.
DAUs in the 13 years and above demographic grew 30% in the second quarter compared with 13% for those under the age of 13 years.
Hours Engaged were 11.3 billion, up 16% year over year. Average Bookings per DAU (ABPDAU) was $12.25, down 21% year over year.
Operating Details
Developer exchange fees in the second quarter shot up by 10%, reaching $143.1 million. Infrastructure and trust & safety expenses rose 41% year over year to $106.8 million.
Research & development and sales & marketing (S&M) expenses were up 69.7% and 39.6% year over year to $211.7 million and $26.5 million, respectively. General & administrative expenses declined 19.5% year over year to $78.6 million.
Adjusted EBITDA came in at $54.6 million, down 69.7% from the year-ago period.
Balance Sheet
As of Jun 30, 2022, Roblox had cash, cash equivalents of $3.07 billion compared with $3.13 billion as of Mar 31, 2022.
Cash flow from operating activities in second-quarter 2022 was $26.4 million compared with the year-ago quarter’s level of $191.2 million. The cash flow from operating activities in the previous quarter was $156.4 million.
Free cash outflow was $57.3 million in the second quarter compared to the previous quarter’s free cash flow of $104.7 million and the year-ago quarter’s level of $168.1 million.
DouYu International is down 55.7% in the year-to-date period compared with the Zacks Gaming industry’s decline of 31.8% and the Consumer Discretionary sector’s fall of 30.1%.
Enthusiast Gaming shares are down 34% in the year-to-date period compared with the Zacks Gaming industry’s decline of 31.8% and the Consumer Discretionary sector’s fall of 30.1%.
Genasys shares are down 13.2% in the year-to-date period compared with the Zacks Consumer Services - Miscellaneous industry’s decline of 10.8% and the Consumer Discretionary sector’s fall of 30.1%.
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Roblox (RBLX) Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Roblox (RBLX - Free Report) reported second-quarter 2022 loss of 30 cents per share, missing the Zacks Consensus Estimate by 30.43%. The company had reported a loss of 25 cents per share in the year-ago quarter.
Revenues increased 30% year over year to $591.2 million, attributed to the company’s efforts to optimize long-term retention and engagement among consumers. The consensus mark for revenues was pegged at 635 million.
Net bookings decreased 4% year over year to $639.9 million, down from $665.4 million in the year-ago quarter.
Roblox Corporation Price, Consensus and EPS Surprise
Roblox Corporation price-consensus-eps-surprise-chart | Roblox Corporation Quote
User Base Details
Average Daily Active Users (DAUs) were 52.2 million, an increase of 21% year over year, driven by an overall increase in engagement on the Roblox platform.
DAUs in the 13 years and above demographic grew 30% in the second quarter compared with 13% for those under the age of 13 years.
Hours Engaged were 11.3 billion, up 16% year over year. Average Bookings per DAU (ABPDAU) was $12.25, down 21% year over year.
Operating Details
Developer exchange fees in the second quarter shot up by 10%, reaching $143.1 million. Infrastructure and trust & safety expenses rose 41% year over year to $106.8 million.
Research & development and sales & marketing (S&M) expenses were up 69.7% and 39.6% year over year to $211.7 million and $26.5 million, respectively. General & administrative expenses declined 19.5% year over year to $78.6 million.
Adjusted EBITDA came in at $54.6 million, down 69.7% from the year-ago period.
Balance Sheet
As of Jun 30, 2022, Roblox had cash, cash equivalents of $3.07 billion compared with $3.13 billion as of Mar 31, 2022.
Cash flow from operating activities in second-quarter 2022 was $26.4 million compared with the year-ago quarter’s level of $191.2 million. The cash flow from operating activities in the previous quarter was $156.4 million.
Free cash outflow was $57.3 million in the second quarter compared to the previous quarter’s free cash flow of $104.7 million and the year-ago quarter’s level of $168.1 million.
Zacks Rank and Stocks to Consider
Currently, Roblox carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are DouYu International (DOYU - Free Report) , Enthusiast Gaming and Genasys (GNSS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
DouYu International is down 55.7% in the year-to-date period compared with the Zacks Gaming industry’s decline of 31.8% and the Consumer Discretionary sector’s fall of 30.1%.
Enthusiast Gaming shares are down 34% in the year-to-date period compared with the Zacks Gaming industry’s decline of 31.8% and the Consumer Discretionary sector’s fall of 30.1%.
Genasys shares are down 13.2% in the year-to-date period compared with the Zacks Consumer Services - Miscellaneous industry’s decline of 10.8% and the Consumer Discretionary sector’s fall of 30.1%.