Roblox (RBLX) has released its second quarter 2024 earnings, and it’s looking pretty good. Roblox surpassed user estimates and boosted its forecast. The platform known for bringing millions together through shared virtual experiences reported some impressive numbers. Here’s the low down.
Roblox’s Revenue Growth
Roblox saw its revenue jump by 31% year-over-year to $893.5 million. Bookings also climbed 22% to $955.2 million. David Baszucki, founder and CEO, attributed this success to the platform’s diverse and high-quality content, stating, “Our strong Q2 growth across all core metrics is driven by diverse and high quality content.”
Despite these gains, Roblox reported a net loss attributable to common stockholders of $205.9 million. The company posted an adjusted loss per share of $0.46, which was worse than the analyst’s consensus EPS estimate of negative $0.39. Adjusted EBITDA came in at $66.5 million, showing a significant change from last year’s $54.6 million.
Roblox’s Users Surge
The platform isn’t just making money—it’s pulling in users. Average Daily Active Users (DAUs) hit 79.5 million, up 21% from last year. Engagement is through the roof with 17.4 billion hours spent on the platform, marking a 24% increase. The average bookings per DAU were $12.01, a modest 1% rise year-over-year.
RBLX CFO’s Comments
Michael Guthrie, Roblox’s CFO, highlighted the financial wins, saying, “The combination of strong topline growth, fixed cost discipline, and reduced capital expenditures allowed us to deliver significantly more cash flow in Q2 2024 than in Q2 2023.” Net cash and cash equivalents provided by operating activities skyrocketed by 433% to $151.4 million, and free cash flow was $111.6 million, a significant turnaround from a negative $95.5 million last year.
Roblox’s Future Outlook
Looking ahead, Roblox is optimistic. For the third quarter, it expects revenue between $860 million and $885 million and bookings between $1 billion and $1.025 billion. The company also updated its full-year 2024 guidance, projecting revenue between $3.49 billion and $3.54 billion and bookings between $4.18 billion and $4.23 billion.
Is Roblox a Buy?
Analysts remain bullish about RBLX stock, with a Moderate Buy consensus rating based on 15 Buys and eight Holds. The average RBLX price target of $42.45 implies an upside potential of 3.9% from current levels. These analyst ratings are likely to change following RBLX’s results today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
