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Roblox (RBLX) to Report Q3 Earnings: What's in the Cards?
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Roblox (RBLX - Free Report) is set to report third-quarter 2022 results on Nov 9.
The Zacks Consensus Estimate for revenues is pegged at $694.88 million, indicating a decline of 8.94% from the year-ago quarter’s levels.
The consensus estimate for loss has widened by 6 cents in the past 30 days and is currently pegged at 37 cents per share.
Notably, the company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the same thrice, the average negative surprise being 41.88%.
Let’s see how things have shaped prior to this announcement.
Roblox’s third-quarter performance is expected to have benefited from user and developer growth and strength in daily user engagement levels on the platform.
The online gaming platform operator reported upbeat September 2022 key metrics, marking the 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. This trend is likely to have continued and impacted the overall third-quarter 2022 performance.
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 the foreign currency fluctuations led to a reduction of approximately 6% in the year-over-year growth rate for September bookings.
The company expects robust growth in the age demographics between 13-to 16-year-olds and 17-to 24-year-olds in third-quarter 2022. Roblox’s increasing penetration in user base between 9 and 12 years and even U9 holds promise. This is expected to have aided user growth in the to-be-reported quarter.
Roblox’s developer community’s focus on providing good content, featuring better visuals and effects, and continued market penetration are expected to drive third-quarter results.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a 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 -6.76% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Image: Bigstock
Roblox (RBLX) to Report Q3 Earnings: What's in the Cards?
Roblox (RBLX - Free Report) is set to report third-quarter 2022 results on Nov 9.
The Zacks Consensus Estimate for revenues is pegged at $694.88 million, indicating a decline of 8.94% from the year-ago quarter’s levels.
The consensus estimate for loss has widened by 6 cents in the past 30 days and is currently pegged at 37 cents per share.
Notably, the company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the same thrice, the average negative surprise being 41.88%.
Let’s see how things have shaped prior to this announcement.
Roblox Corporation Price and EPS Surprise
Roblox Corporation price-eps-surprise | Roblox Corporation Quote
Factors to Note
Roblox’s third-quarter performance is expected to have benefited from user and developer growth and strength in daily user engagement levels on the platform.
The online gaming platform operator reported upbeat September 2022 key metrics, marking the 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. This trend is likely to have continued and impacted the overall third-quarter 2022 performance.
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 the foreign currency fluctuations led to a reduction of approximately 6% in the year-over-year growth rate for September bookings.
The company expects robust growth in the age demographics between 13-to 16-year-olds and 17-to 24-year-olds in third-quarter 2022. Roblox’s increasing penetration in user base between 9 and 12 years and even U9 holds promise. This is expected to have aided user growth in the to-be-reported quarter.
Roblox’s developer community’s focus on providing good content, featuring better visuals and effects, and continued market penetration are expected to drive third-quarter results.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a 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 -6.76% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Backblaze (BLZE - Free Report) currently has an Earnings ESP of +7.41% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
BLZE shares have lost 71.7% in the year-to-date period compared with the Zacks Internet - Software industry’s decline of 59.5%.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present.
TME shares have lost 45.2% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 37.7%.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 at present.
TTD shares have lost 44.7% in the year-to-date period compared with the Zacks Internet - Services industry’s decline of 43%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.