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The Zacks Consensus Estimate for revenues is pegged at $828.84 million, indicating growth of 18.12% from the year-ago quarter’s levels.
The consensus estimate for loss has remained steady at 52 cents in the past 30 days, indicating a decline of 4% year over year.
Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, the average negative surprise being 7.73%.
Let’s see how things have shaped up prior to the 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 company witnessed strong usage growth in the second quarter of 2023. Improvements in booking and daily active users (DAUs) were also recorded as customers spent more time on its games. This trend is likely to have continued and positively impacted the overall third-quarter 2023 performance as well.
Users are growing across regions around the globe, including the United States and Canada. While DAUs of all ages are growing, older users, aged between 17 and 24 years, continue to contribute the most and rose 38% in the third quarter of 2023 from the prior-year quarter. The Zacks Consensus Estimate for DAUs in the to-be-reported quarter is pegged at 70.05 million.
In the last reported quarter, average DAUs were 65.5 million, which increased 25% year over year. Hours engaged were 14 billion, up 24% year over year. Bookings were $780.7 million, up 22% year over year. The Zacks Consensus Estimate for hours engaged and bookings is currently pegged at 15.12 billion and $829 million, respectively.
Roblox’s increasing penetration in user base between nine years and 12 years holds promise. RBLX’s developer community’s focus on providing good content, featuring better visuals and effects, and continued market penetration is expected to drive third-quarter results.
What Our Model Says
Our proven model predicts an earnings beat for Roblox this time around. 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.
Roblox has an Earnings ESP of +9.87% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
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Roblox (RBLX) to Report Q3 Earnings: What's in the Cards?
Roblox (RBLX - Free Report) is set to report third-quarter 2023 results on Nov 8.
The Zacks Consensus Estimate for revenues is pegged at $828.84 million, indicating growth of 18.12% from the year-ago quarter’s levels.
The consensus estimate for loss has remained steady at 52 cents in the past 30 days, indicating a decline of 4% year over year.
Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, the average negative surprise being 7.73%.
Let’s see how things have shaped up prior to the 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 company witnessed strong usage growth in the second quarter of 2023. Improvements in booking and daily active users (DAUs) were also recorded as customers spent more time on its games. This trend is likely to have continued and positively impacted the overall third-quarter 2023 performance as well.
Users are growing across regions around the globe, including the United States and Canada. While DAUs of all ages are growing, older users, aged between 17 and 24 years, continue to contribute the most and rose 38% in the third quarter of 2023 from the prior-year quarter. The Zacks Consensus Estimate for DAUs in the to-be-reported quarter is pegged at 70.05 million.
In the last reported quarter, average DAUs were 65.5 million, which increased 25% year over year. Hours engaged were 14 billion, up 24% year over year. Bookings were $780.7 million, up 22% year over year. The Zacks Consensus Estimate for hours engaged and bookings is currently pegged at 15.12 billion and $829 million, respectively.
Roblox’s increasing penetration in user base between nine years and 12 years holds promise. RBLX’s developer community’s focus on providing good content, featuring better visuals and effects, and continued market penetration is expected to drive third-quarter results.
What Our Model Says
Our proven model predicts an earnings beat for Roblox this time around. 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.
Roblox has an Earnings ESP of +9.87% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
Arcellx (ACLX - Free Report) has an Earnings ESP of +19.40% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arcellx is set to announce third-quarter 2023 results on Nov 13. Shares of ACLX have gained 44.1% year to date.
Upstart (UPST - Free Report) has an Earnings ESP of +9.09% and sports a Zacks Rank #1 at present.
Upstart is set to announce third-quarter 2023 results on Nov 7. Shares of UPST have rallied 129.3% year to date.
Clarivate (CLVT - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank #3 at present.
Clarivate is set to announce third-quarter 2023 results on Nov 7. Shares of CLVT have declined 17.6% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.