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 ...

Financial Performance - Revenue for Q4 2024 was $988.2 million, representing a 32% year-over-year increase[6] - Bookings for Q4 2024 reached $1,361.6 million, up 21% year-over-year[6] - Average Daily Active Users (DAUs) were 85.3 million, an increase of 19% year-over-year[6] - Free cash flow for Q4 2024 was $120.6 million, up 54% year-over-year[6] - For FY 2024, revenue was $3,602.0 million, a 29% increase year-over-year, and bookings were $4,369.1 million, up 24% year-over-year[6] - Revenue for the three months ended December 31, 2024, was $988.2 million, a 31.8% increase from $749.9 million in the same period of 2023[19] - Total bookings for Q4 2024 were $1.36 billion, up 20.8% from $1.13 billion in Q4 2023[27] - Adjusted EBITDA for Q4 2024 was $65.6 million, compared to a loss of $44.8 million in Q4 2023[27] - Adjusted EBITDA for FY 2024 was $180.2 million, with a total change in deferrals of $627.5 million[6] Cash Flow and Operating Activities - The net cash provided by operating activities for FY 2024 was $822.3 million, a 79% increase year-over-year[8] - Cash and cash equivalents at the end of the period were $711.7 million, an increase from $678.5 million at the end of the previous year[22] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $822.3 million, significantly higher than $458.2 million in 2023[22] - Free cash flow for Q4 2024 was $120.6 million, an increase from $78.1 million in Q4 2023[29] Future Guidance - The company expects Q1 2025 revenue guidance between $990 million and $1,015 million[12] - Full year 2025 revenue guidance is projected between $4,245 million and $4,345 million[12] - The projected adjusted EBITDA for Q1 2025 is between $20 million and $40 million[30] Expenses and Costs - Total cost and expenses for the three months ended December 31, 2024, were $1,232.3 million, up from $1,105.1 million in 2023, reflecting an increase of 11.5%[19] - Developer exchange fees for the three months ended December 31, 2024, were $280.6 million, up from $221.8 million in 2023, marking a 26.5% increase[19] - Research and development expenses for the three months ended December 31, 2024, were $355.0 million, compared to $341.1 million in the same period of 2023, reflecting a 4.1% increase[19] - A one-time charge of $17.9 million was recorded for the reassessment of software licenses' useful life in 2024[27] Loss and Deferred Revenue - Consolidated net loss for the three months ended December 31, 2024, was $221.1 million, compared to a net loss of $325.3 million in the same period of 2023, representing a 32.0% improvement[19] - Deferred revenue increased by $385.6 million during the three months ended December 31, 2024, compared to $382.2 million in the same period of 2023[22] User Metrics and Engagement - The estimated average lifetime of a paying user changed from 28 months to 27 months, resulting in an increase in revenue of $12.7 million for the three months ended December 31, 2024[19] - The company aims to support 10% of the global gaming content market and will continue investing in its virtual economy and AI-powered features[7] - The company aims to strengthen its community and support economic growth through its immersive gaming platform[31] Return-to-Office Plan - The company plans to incur cash severance costs related to its return-to-office plan starting summer 2024[28]