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

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Roblox (RBLX - Free Report) is set to report second-quarter 2023 results on Aug 9.

The Zacks Consensus Estimate for revenues is pegged at $785.01 million, indicating growth of 22.68% from the year-ago quarter’s levels.

The consensus estimate for loss has remained steady at 46 cents in the past 30 days, indicating a decline of 53.33% year over year.

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 15.34%.

Let’s see how things have shaped prior to this 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 user and developer growth and strength in daily user engagement levels on the platform.

The company witnessed strong usage growth in the first quarter of 2023, besides gains in booking and daily active users (DAUs), due to customers spending more time on its games. This trend is likely to have continued and impacted the overall second-quarter 2023 performance.

Users are growing across regions around the globe, including the United States and Canada. While DAUs of all ages are also growing, older users continue to contribute the most, with those aged between 17 and 24 years, which rose 35% in the second quarter of 2023 from the prior-year quarter. The Zacks Consensus Estimate for DAUs in the to-be-reported quarter is pegged at 66.5 million.

In the last reported quarter, average DAUs were 66.1 million, an increase of 22% year over year. Hours engaged were 14.5 billion, up 23% year over year. Bookings were $773.8 million, up 23% year over year. The Zacks Consensus Estimate for hours engaged and bookings is currently pegged at 14.65 billion and $783.8 million, respectively.

Roblox’s developer community’s focus on providing good content, featuring better visuals and effects and continued market penetration are expected to have driven second-quarter results. In the second quarter, Roblox announced the launch of a new Roblox Partner Program designed to scale brand innovation and enable a self-serve, global advertising ecosystem on the platform.

The initial group of signed partners includes early adopters who are already setting marketing standards in immersive spaces and are close to the Roblox ecosystem. Century Games, Dentsu (expanding its existing partnership with Roblox in Japan into a global collaboration), DUBIT, PLAYWIRE, SAWHORSE, THE GANG GROUP, And VAYNER3 are a few partners onboarded for the Roblox Partner Program. 

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 0.00% and currently carries a Zacks Rank #4 (Sell). 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 stocks, which according to our model, have the right combination of elements to beat on earnings this season.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is scheduled to release second-quarter 2023 results on Aug 23. The Zacks Consensus Estimate for NVDA’s earnings per share (EPS) is pegged at $2.06, suggesting a jump from the prior-year quarter’s reported figure of 51 cents.

CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank of 2, at present.

CACI is set to report fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s EPS is pegged at $4.85, suggesting growth of 6.83% from the prior-year quarter’s reported figure.

Docebo (DCBO - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank of 3, at present.

Docebo is set to report second-quarter 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s EPS is pegged at 8 cents. The company reported a loss of 5 cents per share in the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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