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The Zacks Consensus Estimate for revenues is pegged at $1.08 billion, indicating growth of 19.6% from the year-ago quarter’s levels.
The consensus estimate for loss has remained steady at 57 cents in the past 30 days, indicating a decline of 18.75% 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 surprise being 5.36%.
Let’s see how things have shaped up prior to the announcement.
Roblox’s fourth-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 third 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 fourth-quarter 2023 performance as well.
Roblox’s increasing penetration in user base between nine 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 fourth-quarter results.
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 70.935 million.
In the last reported quarter, average DAUs were 70.2 million, which increased 20% year over year. Hours engaged were 16 billion, up 20% year over year. Bookings were $839.5 million, up 20% year over year. The Zacks Consensus Estimate for hours engaged is currently pegged at 15.72 billion. The Zacks Consensus Estimate for bookings is currently pinned at $1.09 billion.
What Our Model Says
Our proven model does not predict 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. But that’s not the case here.
Roblox has an Earnings ESP of +6.47% and carries a Zacks Rank #4 (Sell) at present. 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 worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
BlackLine is scheduled to release fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for BL’s earnings is pegged at 55 cents per share, suggesting a jump of 57.1% from the prior-year quarter.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. The Zacks Consensus Estimate for TWLO’s earnings is pinned at 57 cents per share, indicating growth from the year-ago quarter’s figure of 22 cents per share.
Bill Holdings (BILL - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #3 at present.
Bill Holdings is slated to announce second-quarter fiscal 2024 results on Feb 8. The Zacks Consensus Estimate for BILL’s earnings is pinned at 41 cents per share, suggesting a decline of 2.4% from the year-ago quarter.
Image: Bigstock
Roblox (RBLX) to Report Q4 Earnings: What's in the Cards?
Roblox (RBLX - Free Report) is set to report fourth-quarter 2023 results on Feb 7.
The Zacks Consensus Estimate for revenues is pegged at $1.08 billion, indicating growth of 19.6% from the year-ago quarter’s levels.
The consensus estimate for loss has remained steady at 57 cents in the past 30 days, indicating a decline of 18.75% 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 surprise being 5.36%.
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 fourth-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 third 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 fourth-quarter 2023 performance as well.
Roblox’s increasing penetration in user base between nine 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 fourth-quarter results.
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 70.935 million.
In the last reported quarter, average DAUs were 70.2 million, which increased 20% year over year. Hours engaged were 16 billion, up 20% year over year. Bookings were $839.5 million, up 20% year over year. The Zacks Consensus Estimate for hours engaged is currently pegged at 15.72 billion. The Zacks Consensus Estimate for bookings is currently pinned at $1.09 billion.
What Our Model Says
Our proven model does not predict 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. But that’s not the case here.
Roblox has an Earnings ESP of +6.47% and carries a Zacks Rank #4 (Sell) at present. 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 worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
BlackLine (BL - Free Report) has an Earnings ESP of +2.62% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
BlackLine is scheduled to release fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for BL’s earnings is pegged at 55 cents per share, suggesting a jump of 57.1% from the prior-year quarter.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. The Zacks Consensus Estimate for TWLO’s earnings is pinned at 57 cents per share, indicating growth from the year-ago quarter’s figure of 22 cents per share.
Bill Holdings (BILL - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #3 at present.
Bill Holdings is slated to announce second-quarter fiscal 2024 results on Feb 8. The Zacks Consensus Estimate for BILL’s earnings is pinned at 41 cents per share, suggesting a decline of 2.4% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.