Roblox (RBLX) Q2 2025 Earnings Call July 31, 2025 08:30 AM ET Speaker0Good morning. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to the Roblox Q2 twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.Thank you. I will now turn the call over to Stephanie Notoni. May now begin your conference.Speaker1Thank you, R ...

Q2 2025 Supplemental Materials July 31, 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, July 31, 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 users with optimism and civility, our vision to reach 10% of t ...

Core Viewpoint - Roblox Corporation (RBLX) is set to report its second-quarter 2025 results, with expectations of significant revenue growth driven by user engagement and monetization strategies [1][9]. Q2 Estimate Revisions - The Zacks Consensus Estimate for Q2 2025 loss per share is 35 cents, compared to an adjusted loss of 32 cents in the same quarter last year [2]. - Revenue is estimated at $1.27 billion, reflecting a 33.4% increase from the previous year [2]. Earnings Surprise History - RBLX has consistently exceeded earnings expectations, achieving an average surprise of 16.6% over the last four quarters [3]. Earnings Whispers - Current analysis indicates a negative Earnings ESP of -0.09%, suggesting uncertainty regarding an earnings beat this quarter [4]. Zacks Rank - The company holds a Zacks Rank of 3 (Hold) at present [5]. Factors Influencing Q2 Performance - Strong user engagement and monetization initiatives are expected to support top-line performance, particularly in key markets like the U.S. and Canada, as well as emerging markets such as India and Japan [6]. - Monetization strategies, including regional pricing and diversified payment methods, are anticipated to enhance revenue [7]. Strategic Initiatives - Roblox's push into advertising and branded content, including partnerships with major brands, is likely to contribute positively to revenue and user engagement [8]. Revenue and Margin Outlook - Revenue is projected to grow significantly, but ongoing investments in AI and technology may keep margins under pressure [9][11]. - Despite strong revenue trends, profitability may be impacted by high personnel and infrastructure costs [11]. Stock Performance and Valuation - RBLX shares have increased by 185% over the past year, outperforming the industry average of 32.3% [12]. - The stock is currently trading at a forward price-to-sales ratio of 12.87X, above the industry average [16]. Investment Thoughts - The company's strong revenue growth and innovative strategies make it an attractive long-term investment, though near-term profitability may be challenged [18].

Core Viewpoint - Roblox's stock is experiencing significant growth due to improved cash flow, indicating a positive trend for the metaverse pioneer [1]. Group 1 - The stock prices referenced were from the afternoon of July 1, 2025, highlighting the timing of the financial performance [1]. - The video discussing this performance was published on July 3, 2025, suggesting a recent analysis of the company's financial health [1].

Core Insights - The gaming industry is rapidly evolving with two dominant approaches: traditional gaming represented by Take-Two Interactive (TTWO) and a platform-based model exemplified by Roblox (RBLX) [1][2] Company Analysis: Roblox (RBLX) - Roblox reported a 29% year-over-year revenue growth to $1.035 billion in Q1 2025, significantly outperforming industry averages [3] - Bookings increased by 31% to $1.207 billion, and daily active users rose by 26% to 97.8 million, indicating strong user acquisition and retention [3] - Engagement metrics showed a 30% increase in hours engaged, totaling 21.7 billion hours, with users aged 13 and older now making up 62% of total DAUs and growing at 36% year-over-year [4] - International markets are showing significant growth potential, with DAU growth of 48% in Japan and 77% in India [5] - Operating cash flow surged 86% to $443.9 million, and free cash flow more than doubled to $426.5 million, highlighting strong financial performance [6] Company Analysis: Take-Two Interactive (TTWO) - Take-Two reported net bookings of $1.58 billion in Q4 2025, driven by strong performance from NBA 2K25 and a 14% increase in recurrent consumer spending [7] - The anticipated release of Grand Theft Auto VI is a significant future growth catalyst, although its delay to May 2026 pushes potential revenue further out [8] - Fiscal 2025 net bookings grew only 6% to $5.65 billion, with guidance for fiscal 2026 suggesting continued modest growth of 5% [10] - The company recorded goodwill impairment charges of $3.55 billion, raising concerns about previous acquisitions and capital allocation decisions [10] - Take-Two's business model relies heavily on blockbuster releases, creating volatility and execution risk, and it lacks the diversified creator economy that supports sustainable growth [11] Valuation and Performance Comparison - Roblox's shares have increased by 67.9% year-to-date, outperforming Take-Two's 25.1% gain [13] - Roblox's price-to-sales (P/S) ratio is 11.24x, while Take-Two's is 5.99x, reflecting different growth profiles and investor expectations [17] - Roblox's superior revenue growth and expanding margins justify its higher valuation, contrasting with Take-Two's modest growth outlook and reliance on infrequent releases [20] Conclusion - Roblox is positioned as the superior investment choice due to stronger growth fundamentals, better financial performance, and more compelling long-term prospects [21] - The platform's growth metrics and creator economy provide multiple growth vectors, while Take-Two's reliance on blockbuster releases and goodwill impairments raise concerns [21]

Welcome to a new episode of the opening bid podcast. I'm Yahoo Finance executive editor Brian Sazi. Like I always say, this is the podcast that will make you a smarter investor, period.And we're going to have some fun on this podcast. Recent episodes, we were talking about the economy. We're talking to some strategists.We were talking about potential bond market crisis. I want to have a little fun. Uh it's the summer and to that end, I want to bring in Roblox CEO Dave Bazooki.Dave, good to see you. It has b ...

Q1 2025 Supplemental Materials May 1, 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, May 1, 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 users with optimism and civility, our vision to reach 10% of the g ...

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights. In its upcoming report, Roblox (RBLX) is predicted by Wall Street analysts to post quarterly loss of $0.41 per share, reflecting an increase of 4.7% compared to the same period last year. Revenues are forecasted to be $1.15 billion, representing a year-over-year increase of 24%. Over the last 30 days, the ...