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In the last reported quarter, RBLX reported a loss of 32 cents per share, which was narrower than the Zacks Consensus Estimate and the year-ago quarter’s level. Revenues surpassed the consensus mark by 6.5% and increased 22.3% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Notably, the company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 13.65%.
RBLX’s Trend in Estimate Revision
The Zacks Consensus Estimate for loss has narrowed by a cent to 38 cents per share in the past 30 days. The company reported a loss of 45 cents per share in the year-ago quarter.
The consensus Estimate for revenues is pegged at $1.02 billion, indicating growth of 22% from the year-ago quarter’s levels.
Let us see how things might have shaped prior to the announcement.
Factors at Play for RBLX’s Quarterly Results
Roblox’s third-quarter 2024 top and bottom lines are likely to have benefited from growth in its user and developer base and strength in daily engagement levels on the platform. This trend is likely to have contributed to increased activity and bookings.
For third-quarter 2024, RBLX expects revenues in the band of $860-$885 million, reflecting a year-over-year increase of 21% to 24%. RBLX expects adjusted EBITDA to be between $22 million and $42 million against a loss of $26.4 million reported in the year-ago quarter.
Also, its strategic investments in platform quality and cost control are expected to have supported growth. The company’s infrastructure and safety enhancements, along with targeted hiring in areas like AI and advertising, are likely to have aided its performance in the to-be-reported quarter.
Roblox has been experiencing significant growth in bookings, driven by efforts to expand its user base and enhance platform appeal. RBLX expects bookings to be between $1 billion and $1.025 billion, reflecting growth rate of 19% to 22%. The Zacks Consensus Estimate for bookings in the to-be-reported quarter is pegged at $1.023 billion.
The growing user base across global regions, including the United States and Canada, along with increased daily active users (DAUs) and hours engaged, is expected to have contributed to the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for DAUs is pegged at 84.6 million, up from 70.2 million reported in the year-ago quarter.
Despite significant growth in bookings and user engagement, profitability remains a challenge for RBLX. Increased investments in research and development, along with marketing expenses, are expected to have kept the company’s margins under pressure in the to-be-reported quarter. The company expects consolidated net loss to be between $275 million and $255 million, down from $278.8 million reported in the year-ago quarter.
What Our Model Unveils for RBLX
Our proven model predicts an earnings beat for Roblox this time around. 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. This is exactly the case here.
RBLX’s Earnings ESP: RBLX has an Earnings ESP of +4.72%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +36.39% and a Zacks Rank of 3 at present.
DKNG is expected to register a 31.2% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, with the average surprise being 59.5%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +5.84% and a Zacks Rank of 3 at present.
CHH is expected to have registered a 5% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, with the average surprise being 3.4%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +5.03% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 9.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed once, with the average surprise being 16.9%.
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Roblox Gears Up to Report Q3 Earnings: Here's What You Should Know
Roblox Corporation (RBLX - Free Report) is scheduled to report third-quarter 2024 results on Oct. 31, before the opening bell.
In the last reported quarter, RBLX reported a loss of 32 cents per share, which was narrower than the Zacks Consensus Estimate and the year-ago quarter’s level. Revenues surpassed the consensus mark by 6.5% and increased 22.3% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Notably, the company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 13.65%.
RBLX’s Trend in Estimate Revision
The Zacks Consensus Estimate for loss has narrowed by a cent to 38 cents per share in the past 30 days. The company reported a loss of 45 cents per share in the year-ago quarter.
Roblox Corporation Price and EPS Surprise
Roblox Corporation price-eps-surprise | Roblox Corporation Quote
The consensus Estimate for revenues is pegged at $1.02 billion, indicating growth of 22% from the year-ago quarter’s levels.
Let us see how things might have shaped prior to the announcement.
Factors at Play for RBLX’s Quarterly Results
Roblox’s third-quarter 2024 top and bottom lines are likely to have benefited from growth in its user and developer base and strength in daily engagement levels on the platform. This trend is likely to have contributed to increased activity and bookings.
For third-quarter 2024, RBLX expects revenues in the band of $860-$885 million, reflecting a year-over-year increase of 21% to 24%. RBLX expects adjusted EBITDA to be between $22 million and $42 million against a loss of $26.4 million reported in the year-ago quarter.
Also, its strategic investments in platform quality and cost control are expected to have supported growth. The company’s infrastructure and safety enhancements, along with targeted hiring in areas like AI and advertising, are likely to have aided its performance in the to-be-reported quarter.
Roblox has been experiencing significant growth in bookings, driven by efforts to expand its user base and enhance platform appeal. RBLX expects bookings to be between $1 billion and $1.025 billion, reflecting growth rate of 19% to 22%. The Zacks Consensus Estimate for bookings in the to-be-reported quarter is pegged at $1.023 billion.
The growing user base across global regions, including the United States and Canada, along with increased daily active users (DAUs) and hours engaged, is expected to have contributed to the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for DAUs is pegged at 84.6 million, up from 70.2 million reported in the year-ago quarter.
Despite significant growth in bookings and user engagement, profitability remains a challenge for RBLX. Increased investments in research and development, along with marketing expenses, are expected to have kept the company’s margins under pressure in the to-be-reported quarter. The company expects consolidated net loss to be between $275 million and $255 million, down from $278.8 million reported in the year-ago quarter.
What Our Model Unveils for RBLX
Our proven model predicts an earnings beat for Roblox this time around. 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. This is exactly the case here.
RBLX’s Earnings ESP: RBLX has an Earnings ESP of +4.72%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of RBLX: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +36.39% and a Zacks Rank of 3 at present.
DKNG is expected to register a 31.2% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, with the average surprise being 59.5%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +5.84% and a Zacks Rank of 3 at present.
CHH is expected to have registered a 5% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, with the average surprise being 3.4%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +5.03% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 9.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed once, with the average surprise being 16.9%.