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Roblox (RBLX - Free Report) reported a second-quarter 2023 loss of 46 cents per share, which was in line with the Zacks Consensus Estimate. The company had incurred a loss of 30 cents per share in the year-ago quarter.
Net revenues increased 15.14% year over year to $680.76 million.
The Zacks Consensus Estimate for revenues was pegged at $785 million.
Net bookings jumped 23% year over year to $780.6 million from $639.9 million in the year-ago quarter. The figure missed the Zacks Consensus Estimate by 0.4%.
Roblox Corporation Price, Consensus and EPS Surprise
Average Daily Active Users were 65.5 million, which increased 25% year over year. The figure missed the Zacks Consensus Estimate by 1.56%.
Hours Engaged were 14 billion, up 24% year over year. The figure missed the Zacks Consensus Estimate by 4.47%.
Operating Details
Developer exchange fees in the second quarter rose 16% year over year, reaching $165.8 million. Infrastructure and trust & safety expenses shot up by 24% year over year to $132.5 million.
Research & development and general & administrative expenses were up 48.9% and 22.3% year over year to $315.3 million and $96.1 million, respectively. Sales & marketing expenses increased 14.4% year over year to $30.3 million.
Adjusted EBITDA came in at $37.8 million, down 30.6% from the year-ago period.
Balance Sheet
As of Jun 30, 2023, Roblox had cash and cash equivalents of $520.3 million compared with $828.1 million as of Mar 31, 2023.
Cash flow from operating activities in second-quarter 2023 was negative $28.4 million against the year-ago quarter’s level of $26.5 million. The cash flow from operating activities in the previous quarter was negative $269.9 million.
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Roblox (RBLX) Q2 Earnings Meet Estimates, Revenues Rise Y/Y
Roblox (RBLX - Free Report) reported a second-quarter 2023 loss of 46 cents per share, which was in line with the Zacks Consensus Estimate. The company had incurred a loss of 30 cents per share in the year-ago quarter.
Net revenues increased 15.14% year over year to $680.76 million.
The Zacks Consensus Estimate for revenues was pegged at $785 million.
Net bookings jumped 23% year over year to $780.6 million from $639.9 million in the year-ago quarter. The figure missed the Zacks Consensus Estimate by 0.4%.
Roblox Corporation Price, Consensus and EPS Surprise
Roblox Corporation price-consensus-eps-surprise-chart | Roblox Corporation Quote
User Base Details
Average Daily Active Users were 65.5 million, which increased 25% year over year. The figure missed the Zacks Consensus Estimate by 1.56%.
Hours Engaged were 14 billion, up 24% year over year. The figure missed the Zacks Consensus Estimate by 4.47%.
Operating Details
Developer exchange fees in the second quarter rose 16% year over year, reaching $165.8 million. Infrastructure and trust & safety expenses shot up by 24% year over year to $132.5 million.
Research & development and general & administrative expenses were up 48.9% and 22.3% year over year to $315.3 million and $96.1 million, respectively. Sales & marketing expenses increased 14.4% year over year to $30.3 million.
Adjusted EBITDA came in at $37.8 million, down 30.6% from the year-ago period.
Balance Sheet
As of Jun 30, 2023, Roblox had cash and cash equivalents of $520.3 million compared with $828.1 million as of Mar 31, 2023.
Cash flow from operating activities in second-quarter 2023 was negative $28.4 million against the year-ago quarter’s level of $26.5 million. The cash flow from operating activities in the previous quarter was negative $269.9 million.
Zacks Rank and Stocks to Consider
Currently, Roblox carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Consumer Discretionary sector are DouYu International (DOYU - Free Report) , On Holding (ONON - Free Report) and Sphere Entertainment Co. (SPHR - Free Report) . DouYu and On Holding sport a Zacks Rank #1 (Strong Buy) each, while Sphere Entertainment carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DouYu, On Holding and Sphere Entertainment are scheduled to report quarterly results on Aug 14, Aug 15 and Aug 18, respectively.
The consensus mark for DOYU’s second-quarter 2023 earnings is pegged at 2 cents per share, up by 4 cents over the past 30 days.
The Zacks Consensus Estimate for ONON’s second-quarter 2023 earnings is pegged at 13 cents per share, up by a cent over the past 30 days.
The Zacks Consensus Estimate for SPHR’s second-quarter 2023 loss per share is pegged at 40 cents, which has remained unchanged over the past 30 days.