Core Viewpoint - Roblox Corp reported fiscal fourth-quarter 2024 bookings growth of 21% to $1.36 billion, slightly missing analyst estimates, while adjusted EPS loss was better than expected, leading to a price target increase from $60 to $72 by Needham analyst Bernie McTernan [1][2]. Group 1: Financial Performance - Fiscal fourth-quarter 2024 bookings were $1.36 billion, a 21% increase, but below the $1.37 billion estimate [1]. - Adjusted EPS loss was 33 cents, outperforming the consensus estimate of a 44 cents loss [1]. - First-quarter bookings are expected to be between $1.125 billion and $1.150 billion, slightly above the consensus of $1.14 billion [2]. Group 2: Market Expectations - There was a significant rise in bookings growth expectations, with investors shifting from a 20% CAGR to a 25% or 30% CAGR, although reported deceleration was noted [4]. - The guidance for first-quarter bookings indicates a solid 23% growth, but this is against elevated expectations following a 74% stock increase since the third quarter [5]. Group 3: Growth Drivers - Mobile and desktop bookings grew by 26% in the fourth quarter, with December growth at 27% [6]. - Management aims to capture 10% of the global gaming content market, up from the current 2.4%, which is contingent on technological advancements [6]. - New genres like shooters and sports show potential for growth, although it is still early in their development [7]. Group 4: Margin and EBITDA Estimates - McTernan estimates that a shift of 7% of bookings from mobile/console to desktop is needed to break even on gross margin, with each additional 5% shift contributing a 9% increase to adjusted EBITDA [8]. - Adjusted EBITDA estimates for fiscal 2025E increased by 6%, but estimates for fiscal 2026E and 2027E were lowered by 2% and 7%, respectively, due to reduced operating leverage assumptions [9].

Core Insights - Roblox aims to capture 10% of the global gaming content market, currently holding only 2.4% [1] - Recent earnings report showed bookings and daily active users below estimates, leading to an 11% drop in shares [1] - CEO Baszucki emphasized that the company is on track to meet its content goals, having exceeded previous guidance [1] Recent Ventures - Roblox has integrated brands from popular movies like Wicked and Beetlejuice, and features content from the NFL, NBA, and YouTube creator Mr. Beast [2] - The company is leveraging artificial intelligence to enhance user safety, particularly for its child user base [2] Future Directions - Roblox is exploring immersive experiences beyond gaming, including digital ecommerce partnerships with Shopify [3] - The long-term vision focuses on immersive 3D environments for various applications, emphasizing safety and civility [3]

Group 1: Electronic Arts (EA) - EA missed fiscal third-quarter earnings and revenue expectations, leading to a cut in its full-year sales outlook [2] - The company announced a $1 billion share buyback program, resulting in a 7.6% stock gain, the largest since May 2022 [2] - EA shares have decreased by 18.4% over the past three months, distancing from a 52-week low of $115.21 [2] Group 2: Roblox Corp (RBLX) - RBLX experienced a 13.6% decline, trading at $65.24, despite previously hitting multi-year highs [3] - The company reported smaller-than-expected losses per share for the fourth quarter, but missed revenue expectations and provided a dismal annual bookings forecast [3] - RBLX has seen a significant increase of 115.4% over the last nine months [3] Group 3: Take-Two Interactive (TTWO) - TTWO shares were down 0.7% at $183.69 ahead of the fiscal third-quarter results announcement [4] - The stock has a long-term support level at $177 and has gained 32.5% over the past three months [4] - Options markets are anticipating a 10% price swing post-earnings, which is larger than the 5.5% average move over the last two years [4]

Shares of video game platform Roblox (RBLX -13.93%) crashed on Thursday after the company reported financial results for the fourth quarter of 2024 that exceeded expectations. Yes, financial results were better than expected, but investors are nonetheless worried about some trends in the business. And that's why Roblox stock was down 11% as of 11 a.m. ET.Certain trends overshadow otherwise strong financialsThis is admittedly a complicated story and market reaction.In isolation, Roblox's numbers were good. Q ...

Here's our initial take on Roblox's (RBLX -11.18%) fourth-quarter financial report.Key MetricsMetricQ4 2023Q4 2024Changevs. ExpectationsRevenue$749.9 million$988.2 million32%MissedEarnings per share-$0.52-$0.33N/MBeatBookings$1.127 billion$1.36 billion21%MissedDaily active users (DAUs)71.5 million85.3 million19%n/aRoblox fails to live up to high hopesRoblox's per-share loss was less than expected in the fourth quarter, but it missed expectations on revenue and bookings. Bookings, which is the better indicat ...

Experience as an investment analyst for a major BB-Bank, as well as private equity consultant for MBB. Currently working towards the CFA charter, having completed I&II. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor ExpressAnalyst’s Disclosure: I/we have a beneficial long position in the shares of RBLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compen ...

Roblox (RBLX) reported $1.36 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 20.8%. EPS of -$0.33 for the same period compares to -$0.52 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.38 billion, representing a surprise of -1.51%. The company delivered an EPS surprise of +28.26%, with the consensus EPS estimate being -$0.46.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Roblox (RBLX) came out with a quarterly loss of $0.33 per share versus the Zacks Consensus Estimate of a loss of $0.46. This compares to loss of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.26%. A quarter ago, it was expected that this online gaming platform would post a loss of $0.38 per share when it actually produced a loss of $0.37, delivering a surprise of 2.63%.Over the last four quarters, the company has sur ...

Roblox shares plunged more than 16% after the gaming platform fell short of Wall Street's bookings and daily active user estimates.Roblox reported bookings of $1.36 billion for the fourth quarter, versus the $1.37 billion expected by analysts polled by LSEG. Daily active users came in at 85.3 million, reflecting 19% growth from a year ago. However, the figure came up short of a StreetAccount estimate of 88.2 million.The company said it anticipates bookings to range between $5.20 billion and $5.30 billion fo ...

Q4 2024 Supplemental Materials February 6, 2025 Forward-Looking Statements This presentation and the live webcast and Q&A session which will be held at 530 a.m. Pacific Time/830 a.m. Eastern Time on Thursday, February 6, 2025 contain "forward-looking statementsˮ within the meaning of the "safe harborˮ provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion global DAUs, our vision to reach 10% of the global gamin ...