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Roblox (RBLX) Rallies on Solid September Bookings, Daily Users
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Roblox (RBLX - Free Report) shares skyrocketed about 20% on Oct 17 after the online gaming platform operator reported upbeat September 2022 key metrics, marking their highest one-day jump since November 2021.
The company witnessed strong usage growth in September, besides gains in booking and daily active users (DAUs) as a result of customers spending more time on its games.
The estimated revenues were between $171 million and $180 million. Roblox reported 57.8 million daily active users for September, up 23% year over year, and 4 billion hours engaged, up 16% year over year.
Roblox had projected bookings between $212 million and $219 million, up 11% to 15% year over year. Estimated average bookings per DAU were $3.67 to $3.79, down 7-10% year over year.
The company noted that the strengthening of the U.S. dollar against the euro, British pound, and other foreign currencies during 2022 had an adverse impact on bookings. It believes that the impact of foreign currency fluctuations led to a reduction of approximately 6% in the year-over-year growth rate for September bookings.
On a constant-currency basis, the company had estimated bookings growth to be 17% to 21% year over year, and average revenue per daily active user to be down 2% to 5% year over year.
The company has been taking initiatives to make the experience more engaging in terms of communication and connection. The chat on Roblox is voice-enabled where players can speak with one another and by next year they will be able to use a webcam to express themselves in real time through their avatars.
Roblox has also made advancements in its Studio to make the software more user-friendly. It now comes with a fresh look and feel. The interface has been updated with new features that allow creators to customize their workspace layout and collaborate with teammates with just one click.
Roblox is set to roll out a real-time constructive solid geometry system, which will allow developers to build sophisticated modeling tools in experiences.
The company plans to launch 3D advertising, more popularly known as immersive ads, on its platform in 2023. Per Reuters, immersive ads will only reach audiences aged 13 and above. It will begin testing immersive ads with developers and advertisers by the end of this year.
The availability of immersive ads will diversify Roblox’s revenue-generating source. Currently, Roblox generates revenues through the sale of virtual items on its platform. Users spend Robux, a digital currency, to buy these virtual items on the company’s platform.
BJ shares have gained 4.2% year to date. The Zacks Consensus Estimate for fiscal 2023 earnings has declined 0.28% over the past 30 days to $3.59 per share.
H shares have declined 14.5% year to date. The Zacks Consensus Estimate for 2022 earnings has remained unchanged at 68 cents per share over the past month.
FuboTV shares have declined 73.9% year to date. The Zacks Consensus Estimate for 2022 loss has remained steady at $2.98 per share over the past 30 days.
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Roblox (RBLX) Rallies on Solid September Bookings, Daily Users
Roblox (RBLX - Free Report) shares skyrocketed about 20% on Oct 17 after the online gaming platform operator reported upbeat September 2022 key metrics, marking their highest one-day jump since November 2021.
The company witnessed strong usage growth in September, besides gains in booking and daily active users (DAUs) as a result of customers spending more time on its games.
The estimated revenues were between $171 million and $180 million. Roblox reported 57.8 million daily active users for September, up 23% year over year, and 4 billion hours engaged, up 16% year over year.
Roblox had projected bookings between $212 million and $219 million, up 11% to 15% year over year. Estimated average bookings per DAU were $3.67 to $3.79, down 7-10% year over year.
The company noted that the strengthening of the U.S. dollar against the euro, British pound, and other foreign currencies during 2022 had an adverse impact on bookings. It believes that the impact of foreign currency fluctuations led to a reduction of approximately 6% in the year-over-year growth rate for September bookings.
On a constant-currency basis, the company had estimated bookings growth to be 17% to 21% year over year, and average revenue per daily active user to be down 2% to 5% year over year.
Roblox Corporation Price and Consensus
Roblox Corporation price-consensus-chart | Roblox Corporation Quote
Gaming Initiatives to Boost User Growth
The company has been taking initiatives to make the experience more engaging in terms of communication and connection. The chat on Roblox is voice-enabled where players can speak with one another and by next year they will be able to use a webcam to express themselves in real time through their avatars.
Roblox has also made advancements in its Studio to make the software more user-friendly. It now comes with a fresh look and feel. The interface has been updated with new features that allow creators to customize their workspace layout and collaborate with teammates with just one click.
Roblox is set to roll out a real-time constructive solid geometry system, which will allow developers to build sophisticated modeling tools in experiences.
The company plans to launch 3D advertising, more popularly known as immersive ads, on its platform in 2023. Per Reuters, immersive ads will only reach audiences aged 13 and above. It will begin testing immersive ads with developers and advertisers by the end of this year.
The availability of immersive ads will diversify Roblox’s revenue-generating source. Currently, Roblox generates revenues through the sale of virtual items on its platform. Users spend Robux, a digital currency, to buy these virtual items on the company’s platform.
Zacks Rank and Other Stocks to Consider
Roblox currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Consumer Discretionary sector are BJ's Wholesale Club (BJ - Free Report) and Hyatt Hotels (H - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and FuboTV (FUBO - Free Report) , which carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ shares have gained 4.2% year to date. The Zacks Consensus Estimate for fiscal 2023 earnings has declined 0.28% over the past 30 days to $3.59 per share.
H shares have declined 14.5% year to date. The Zacks Consensus Estimate for 2022 earnings has remained unchanged at 68 cents per share over the past month.
FuboTV shares have declined 73.9% year to date. The Zacks Consensus Estimate for 2022 loss has remained steady at $2.98 per share over the past 30 days.