Roblox Corporation(NYSE:RBLX) shares are trading lower Friday after the company reported second-quarter earnings on Thursday after the market closed.
- Roblox shares are approaching critical lows. Why is RBLX stock at lows?
Roblox Beats Estimates with User Growth Despite $185M Loss
Roblox reported a loss of 26 cents per share, beating the consensus estimate of a 30 cent-loss. In addition, Roblox reported revenue of $1.55 billion, inline with the consensus estimate.
Average daily active users reached 123 million, up 10% year-over-year, while hours engaged rose 5% to 29 billion. Average monthly unique payers grew 15% to 27 million, and bookings increased 8% year-over-year to $1.6 billion. The company reported a consolidated net loss of $185 million.
“We remain focused on capturing 10% of the global gaming market and an even greater share in the U.S. Q2 delivered year-over-year gains in users and hours, following last year’s incredible growth,” said David Baszucki, founder and CEO of Roblox.
What to Expect in Q3
Roblox expects third-quarter revenue of $1.41 billion to $1.49 billion. The company expects third-quarter bookings to decline 14% to 18% year-over-year.
For the quarter, the company projects operating cash flow in the range of $110 million to $175 million and free cash flow in the range of $(60) million to $5 million, reflecting previously disclosed back-half loaded capital expenditures. These expectations also include about $40 million year-over-year working capital headwind, driven by the timing of creator payouts.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $66.42. Recent analyst moves include:
- Needham: Buy (Lowers Target to $50.00) (July 31)
- BTIG: Downgraded to Sell (Target $30.00) (July 31)
- Deutsche Bank: Downgraded to Hold (Lowers Target to $38.00) (July 31)
Roblox Shares Crash
RBLX Price Action: At the time of publication, Roblox shares are trading 20.69% lower at $38.60, according to data from Benzinga Pro.
This content was partially produced with the help of AI tools and was reviewed and
Market News and Data brought to you by Benzinga APIs
To add Benzinga News as your preferred
