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Roblox (RBLX - Free Report) reported second-quarter 2024 loss of 32 cents per share, narrower than the Zacks Consensus Estimate of a loss of 37 cents. The company had incurred a loss of 46 cents per share in the year-ago quarter.
Net revenues increased 22.3% year over year to $955.18 million.
The Zacks Consensus Estimate for revenues was pegged at $897 million.
Net bookings jumped 22% year over year to $955.2 million, which increased from $780.7 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 6.26%.
Roblox Corporation Price, Consensus and EPS Surprise
Average Daily Active Users were 79.5 million, which increased 21% year over year. The figure beat the Zacks Consensus Estimate by 4.07%.
Hours Engaged were 17.4 billion, up 24% year over year. The figure missed the Zacks Consensus Estimate by 4.59%.
Operating Details
Developer exchange fees in the second quarter rose 25.6% year over year, reaching $208.3 million. Infrastructure and trust & safety expenses decreased 1.8% year over year to $221.1 million.
Research & development and general & administrative expenses were up 14.7% and 9.8% year over year to $361.6 million and $105.62 million, respectively. Sales & marketing expenses increased 19.7% year over year to $36.3 million.
Adjusted EBITDA came in at $66.5 million against a negative $49 million in the year-ago period.
Balance Sheet
As of Jun 30, 2024, Roblox had cash and cash equivalents of $966.4 million compared with $866.4 million as of Mar 31, 2024.
Cash flow from operating activities in second-quarter 2024 was $151.4 million compared with the year-ago quarter’s $28.4 million. The cash flow from operating activities in the previous quarter was negative $238.9 million.
Guidance
For third-quarter 2024, RBLX expects revenues in the band of $860-$885 million and adjusted EBITDA between $22 million and $42 million. Net bookings are expected between $1 billion and $1.025 billion.
For full-year 2024, Roblox expects revenues in the range of $3.49-$3.54 billion and adjusted EBITDA between $92 million and $132 million.
The company expects net bookings for the fiscal year between $4.18 billion and $4.23 billion.
Free cash flow is estimated in the band of $505-$535 million.
Warner Music Group is scheduled to report second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for WMG’s first-quarter EPS has increased 2 cents to 25 cents over the past 30 days.
Choice Hotels International is set to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for CHH’s EPS is pegged at $1.87, which has increased a cent over the past 30 days.
YETI is slated to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for YETI’s EPS is pegged at 63 cents, which has remained unchanged over the past 30 days.
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Roblox (RBLX) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Roblox (RBLX - Free Report) reported second-quarter 2024 loss of 32 cents per share, narrower than the Zacks Consensus Estimate of a loss of 37 cents. The company had incurred a loss of 46 cents per share in the year-ago quarter.
Net revenues increased 22.3% year over year to $955.18 million.
The Zacks Consensus Estimate for revenues was pegged at $897 million.
Net bookings jumped 22% year over year to $955.2 million, which increased from $780.7 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 6.26%.
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 79.5 million, which increased 21% year over year. The figure beat the Zacks Consensus Estimate by 4.07%.
Hours Engaged were 17.4 billion, up 24% year over year. The figure missed the Zacks Consensus Estimate by 4.59%.
Operating Details
Developer exchange fees in the second quarter rose 25.6% year over year, reaching $208.3 million. Infrastructure and trust & safety expenses decreased 1.8% year over year to $221.1 million.
Research & development and general & administrative expenses were up 14.7% and 9.8% year over year to $361.6 million and $105.62 million, respectively. Sales & marketing expenses increased 19.7% year over year to $36.3 million.
Adjusted EBITDA came in at $66.5 million against a negative $49 million in the year-ago period.
Balance Sheet
As of Jun 30, 2024, Roblox had cash and cash equivalents of $966.4 million compared with $866.4 million as of Mar 31, 2024.
Cash flow from operating activities in second-quarter 2024 was $151.4 million compared with the year-ago quarter’s $28.4 million. The cash flow from operating activities in the previous quarter was negative $238.9 million.
Guidance
For third-quarter 2024, RBLX expects revenues in the band of $860-$885 million and adjusted EBITDA between $22 million and $42 million. Net bookings are expected between $1 billion and $1.025 billion.
For full-year 2024, Roblox expects revenues in the range of $3.49-$3.54 billion and adjusted EBITDA between $92 million and $132 million.
The company expects net bookings for the fiscal year between $4.18 billion and $4.23 billion.
Free cash flow is estimated in the band of $505-$535 million.
Zacks Rank and Other Stocks to Consider
Currently, Roblox carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Consumer Discretionary sector are Warner Music Group (WMG - Free Report) , Choice Hotels International (CHH - Free Report) and YETI (YETI - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Warner Music Group is scheduled to report second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for WMG’s first-quarter EPS has increased 2 cents to 25 cents over the past 30 days.
Choice Hotels International is set to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for CHH’s EPS is pegged at $1.87, which has increased a cent over the past 30 days.
YETI is slated to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for YETI’s EPS is pegged at 63 cents, which has remained unchanged over the past 30 days.