Roblox reported a revenue miss when it announced Q3 earnings. But average daily active users were 151.5 million, a 70% year-over-year increase. ...

TRENDING: You Don't Have To Dig Far To Cash In On Rare Earths Kid-centric online service Roblox (RBLX) on Thursday beat expectations for the third quarter and guided higher than views for the current period. But Roblox stock fell after the report. Based on the midpoint of its guidance, Roblox expects bookings in the fourth quarter of $2.03 billion, vs. the consensus estimate of $1.84 billion. In Q4 last year, it generated bookings of $1.36 billion. "Our third-quarter results demonstrate the tremendous progr ...

Financial Data and Key Metrics Changes - Q3 revenue reached $1.36 billion, up 48% year on year [5] - Q3 bookings were $1.92 billion, up 70% year on year [5] - Daily Active Users (DAUs) hit 151.5 million, a 70% increase year on year [4] - Engagement hours reached 39.6 billion, up 91% year on year [5] - Monthly unique payers increased to 35.8 million, up 88% year on year [5] Business Line Data and Key Metrics Changes - The number of experiences with over 10 million DAUs reached seven, including five new experiences created in the last 12 months [3][4] - Developer Exchange (DevEx) earnings reached $427.9 million, up 85% year on year [5] - DevEx has grown 250% from the same period two years ago [6] Market Data and Key Metrics Changes - Global gaming bookings through Roblox increased from 2.3% to 3.2% year on year [3] - APAC bookings grew by 110% year on year, with specific countries like Indonesia seeing an 804% increase [5] Company Strategy and Development Direction - The company aims to capture 10% of the global gaming content market, focusing on genre expansion and technological innovation [3][6] - Investments in infrastructure and safety are prioritized to support long-term growth and platform resilience [10][20] - The introduction of new technologies, such as AI-based features and enhanced avatar capabilities, is expected to drive future engagement [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential short-term friction from new safety policies but believes these will enhance long-term growth [20] - The company is optimistic about sustaining double-digit bookings growth, aided by upcoming technology launches [19][20] - There is a focus on maintaining a healthy balance between creator economics and company profitability [36] Other Important Information - The company has launched an IP platform to connect IP holders and creators more efficiently [9] - Over 100 innovations in safety and civility have been released this year, including stricter age ratings [12] Q&A Session Summary Question: AI and Infrastructure Plans - The company is excited about the potential of AI and GPU infrastructure to enhance user experiences and real-time content generation [24][26] Question: Competition and Creator Economics - The company emphasizes the importance of creator economics and the broader ecosystem, not just the DevEx rate, to attract and retain creators [34][36] Question: Age Cohorts and Investment Priorities - The company has seen strong organic growth and is aligning its technical roadmap with the interests of older age cohorts [38][40] Question: Bookings Growth Expectations - Management refrains from providing specific guidance for 2026 but acknowledges potential headwinds from tough comparisons and new safety policies [46][50] Question: Advertising as a Growth Strategy - The company is exploring paid user acquisition strategies in partnership with creators while maintaining a focus on organic growth [80][83] Question: Developer Growth and Investment Yield - The company reports healthy growth among top developers and anticipates both short-term and long-term returns from AI investments [87][90]

Q3 2025 Results - Revenue reached $1.4 billion, a 48% year-over-year growth[5] - Bookings totaled $1.9 billion, showing a 70% year-over-year increase[5] - Average Daily Active Users (DAUs) were 151.5 million, up 70% year-over-year[5] - Hours Engaged reached 39.6 billion, a significant 91% year-over-year growth[5] - Net loss was $(257) million, a 121% year-over-year growth[7] - Net cash provided by operating activities was $546 million[7] - Free cash flow was $443 million, a 103% year-over-year growth[7] - Adjusted EBITDA was $46 million[7] Q4 and Fiscal Year 2025 Guidance - Q4 2025 revenue is projected between $1.35 billion and $1.4 billion, representing a 37% to 42% year-over-year increase[57] - Q4 2025 bookings are expected to be between $2 billion and $2.05 billion, a 47% to 51% year-over-year increase[57] - Fiscal year 2025 revenue is guided between $4.8255 billion and $4.8755 billion, a 34% to 35% year-over-year increase[58] - Fiscal year 2025 bookings are projected between $6.5662 billion and $6.6162 billion, a 50% to 51% year-over-year increase[58]

Financial Data and Key Metrics Changes - Revenue reached a record $277.9 million, up 20% year over year, marking the 10th consecutive quarter of sequential revenue growth [6][14] - Adjusted EBITDA of $36 million increased 54% year over year, demonstrating significant operating leverage [6][16] - Gross margin was 34.0%, reflecting improvements in higher margin markets, offset by player-friendly sports outcomes impacting Colombia [15] Business Line Data and Key Metrics Changes - Online casino revenues grew 34% during the quarter, while online sports betting contracted 16% due to elevated bonusing in Colombia [14] - North American monthly active users (MAUs) increased 34% year over year to 225,000, the strongest quarterly growth in over four years [6][16] - In North American online casino markets, MAUs grew 46% year over year, indicating strong player retention and engagement [7] Market Data and Key Metrics Changes - Delaware saw 74% net revenue growth, Michigan 48%, New Jersey 37%, Ontario 24%, and Pennsylvania 15%, showcasing broad-based growth across various markets [8] - In Latin America, MAUs grew 30% year over year to 415,000, with Mexico revenue growing over 100% [9] - Colombia's net revenue was down 27% due to player bonusing related to a temporary VAT tax, despite GGR growth over 50% [9][14] Company Strategy and Development Direction - The company is focusing on innovation, online casino legalization, and strategic growth opportunities, with leadership changes to enhance operational excellence [5][12] - Planned expansion into Alberta is anticipated to leverage proven success in similar markets like Ontario [12] - The company is monitoring legislative developments across multiple U.S. states to capitalize on online casino legalization opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in North American online casino markets, with acceleration observed every month since March [18] - The company raised its full-year revenue guidance to between $1.1 billion and $1.12 billion, representing a 20% year-over-year increase [20] - Management remains optimistic about the potential for growth in Latin America despite challenges in Colombia [99] Other Important Information - The company ended the quarter with $273 million in unrestricted cash and no debt, providing flexibility for growth investments [17] - The company is focused on maintaining marketing leverage, with marketing expenses expected to grow at a lower rate than revenue [18] Q&A Session Summary Question: Insights on updated guidance and fourth-quarter margins - Management indicated increased marketing spend and ongoing VAT tax in Colombia as factors impacting margins [23] Question: Potential increase in gaming tax rates in Mexico - Management acknowledged tracking the situation and indicated that a tax increase from 30% to 50% is likely, but they are exploring ways to mitigate the impact [25] Question: Next steps regarding VAT tax in Colombia - Management expressed confidence that the proposed tax reform will not pass, allowing normal tax conditions to resume [28] Question: Impact of sweepstakes operators on the business - Management noted that while some states have effectively regulated sweepstakes, others still face challenges, and the proliferation of unregulated products underscores the need for legalized online gaming [58] Question: Customer reactions to sports betting outcomes - Management confirmed that player-friendly outcomes in September impacted hold but noted improvements in the percentage of betting going to in-game and parlays [82]

Investor Presentation - October 2025 - Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the estimated future financial performance, financial position and guidance, the business strategy, plans and objectives of management for future operations, potential market access in various jurisdictions, expectations around partnersh ...

Core Insights - Roblox Corporation (RBLX) is set to release its third-quarter 2025 results on October 30, with previous earnings exceeding the Zacks Consensus Estimate by 10.9% [1] - The company has consistently beaten earnings expectations, achieving an average surprise of 15.9% over the last four quarters [1] Q3 Estimate Revisions - The Zacks Consensus Estimate for RBLX's third-quarter 2025 loss per share is 54 cents, compared to an adjusted loss of 37 cents in the same quarter last year [2] - Revenue estimates for the quarter are projected at $1.7 billion, reflecting a 50.7% increase from the previous year's figure [2] Factors Influencing Q3 Performance - Continued user engagement and viral content are expected to support RBLX's top line, with record daily active users (DAUs) and engagement hours noted in the Asia-Pacific region, particularly in Japan, India, and Indonesia [3] - Popular games like "Grow a Garden" and "Steal a Brainrot" have likely continued to attract users, enhancing overall ecosystem spending [4] Monetization and Revenue Drivers - Monetization strategies established in the second quarter, including expansion into new genres and partnerships with brands like FIFA and Netflix, are anticipated to bolster revenue [5] - Ad monetization initiatives, such as Rewarded Video with Google, have also contributed to revenue potential [5] Cost Pressures on Profitability - Elevated expenses related to infrastructure scaling and higher developer payouts are expected to constrain the bottom line, despite strong revenue trends [6] - The need to support record concurrent players through owned servers and cloud partnerships has increased costs, while developer payouts have reached new highs [6] Ongoing Investments Impacting Margins - Investments in AI tools, safety features, and global infrastructure are likely to weigh on profitability, leading to pressure on margins despite strong revenue growth [7] Earnings Whispers - The company's Earnings ESP stands at +11.23%, indicating a strong likelihood of an earnings beat [8] - Q3 revenues are estimated at $1.7 billion, up 50.7% year-over-year, driven by viral content and user growth, although higher costs may pressure margins [8]

Core Points - Codere Online Luxembourg, S.A. will release its third quarter 2025 results on November 17, 2025, before 8:30 AM US Eastern Time [1] - A conference call will be held at 8:30 AM US Eastern Time on the same day to discuss the results and provide a business update [1] - Earnings press release and related materials will be available on Codere Online's website [2] Company Overview - Codere Online operates as a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services [3] - The company was launched in 2014 as part of the Codere Group, which has a strong physical presence in Latin America [3] - Codere Group is a multinational entertainment and leisure company with over four decades of experience in the private gaming industry, operating in seven countries across Europe and Latin America [4]

Core Insights - FanDuel Casino has partnered with leading slots influencer Lady Luck HQ, who will serve as an exclusive ambassador, creating content and promoting responsible gaming practices [1][4]. Company Overview - FanDuel is recognized as the premier online gaming company in North America, with a diverse portfolio that includes sports betting, iGaming, horse racing, and daily fantasy sports [5]. - The company operates across all 50 states, boasting approximately 17 million customers and 25 retail locations [5]. Influencer Profile - Lady Luck HQ, known as Francine Maric, is the most-subscribed female slots influencer on YouTube, with over one million subscribers and a significant presence on social media platforms [3]. - She has established a dedicated community by showcasing authentic and responsible casino entertainment, gaining recognition for her viral content, including an $18,000 jackpot video [3]. Partnership Details - The partnership aims to enhance the engagement of Lady Luck HQ's community while promoting safe gaming experiences [4]. - FanDuel Casino's marketing strategy includes leveraging Lady Luck HQ's influence to connect with audiences, particularly female customers, and to celebrate the evolution of digital gaming [4].

Core Insights - The market began 2025 positively but faced volatility due to tariff and geopolitical risks, with the Fed cutting rates by 25 basis points to 4.00–4.25% in September and signaling two more cuts for the year [1] - Despite inflation and rising unemployment, equities remain near record highs, driven by optimism over rate cuts, AI-driven earnings growth, and hopes for a soft landing [1] - Retail investors face challenges in stock selection amidst these conditions [1] Sales Growth as a Key Metric - Sales growth is preferred over earnings for evaluating stocks, as it reflects actual demand and provides visibility into a company's business model durability [3] - Companies that can grow revenues during economic downturns demonstrate pricing power and competitive advantages [3] - Constant sales growth leads to stronger cash flows, allowing for reinvestment, market expansion, or shareholder returns without excessive debt reliance [5] Stock Selection Criteria - Stocks with 5-Year Historical Sales Growth (%) greater than industry average and Cash Flow over $500 million are prioritized [6] - Additional metrics include P/S Ratio less than industry average, positive % Change in F1 Sales Estimate Revisions, Operating Margin greater than 5%, and Return on Equity (ROE) greater than 5% [7][8][9] Recommended Stocks - **Lamb Weston (LW)**: Expected sales growth rate of 1.3% for fiscal 2026, Zacks Rank 1 [12] - **Universal Health Services (UHS)**: Expected sales growth rate of 8.5% for 2025, Zacks Rank 2 [14] - **FirstEnergy Corp (FE)**: Expected sales growth of 6.6% in 2025, Zacks Rank 2 [14] - **NetEase, Inc. (NTES)**: Expected sales growth of 10.3% for 2025, Zacks Rank 2 [15] - **JPMorgan Chase & Co. (JPM)**: Expected sales growth of 2.1% in 2025, Zacks Rank 2 [16]