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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 2024 results on Aug 1.

The Zacks Consensus Estimate for revenues is pegged at $894.94 million, indicating growth of 14.63% from the year-ago quarter’s levels.

The Zacks Consensus Estimate for loss has narrowed by 4 cents to 37 cents per share over the past 30 days. The company reported a loss of 46 cents per share in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.28%.

Let’s see how things have shaped up prior to the 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 2024. 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 second-quarter 2024 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 first-quarter results.

Users are growing across regions around the globe, including the United States and Canada. While DAUs of all ages are growing, users aged 13 years and older continue to contribute the most in the first quarter of 2024 from the year-ago quarter. The Zacks Consensus Estimate for DAUs in the to-be-reported quarter is pegged at 76.4 million.

In the last reported quarter, average DAUs were 77.7 million, which increased 17% year over year. Hours engaged were 16.7 billion, up 15% year over year. Bookings were $923.8 million, up 19% year over year. The Zacks Consensus Estimate for hours engaged and bookings is currently pegged at 16.63 billion and $897 million, respectively.

RBLX is likely to have increased investments and some amount of fixed costs in the second quarter. This seasonality is expected to have kept the company’s margins under pressure.

What Our Model Says

According to 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 +33.7% 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 have the right combination of elements to beat on earnings this season.

Aspen Aerogels (ASPN - Free Report) has an Earnings ESP of +23.53% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN’s earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter’s loss of 22 cents per share.

Apple (AAPL - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank #2 at present.

Apple is scheduled to release third-quarter fiscal 2024 results on Aug 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $1.34 per share, suggesting a jump of 6.35% from the prior-year quarter.

GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present.

GoDaddy is set to report second-quarter 2024 results on Aug 1. The Zacks Consensus Estimate for GDDY’s earnings is pegged at $1.07 per share, indicating growth of 69.84% from the year-ago quarter’s reported figure.

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


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