Roblox Stock Fluctuates After Mixed Q3 Earnings Report
Roblox Corporation (RBLX) experienced notable volatility in its stock performance following the release of its mixed Q3 earnings report. Initially soaring over 8% in pre-market trading, the stock then retraced by 6%. Investors were reacting to both earnings and operational metrics from the gaming platform.
Roblox Q3 Financial Highlights
For the third quarter, Roblox reported a diluted loss of $0.37 per share. This figure was better than analysts’ consensus estimate of a $0.49 loss. Despite the narrower loss, the company’s revenue rose to $1.36 billion, marking a 48% increase year-over-year; however, this amount fell short of the projected $1.69 billion.
Key Performance Metrics
- Bookings: Increased by 70% to $1.92 billion, surpassing expectations of $1.70 billion.
- Daily Active Users (DAUs): Reached 151.5 million, up 70% year-over-year.
- Hours Engaged: Grew 91% to 39.6 billion hours.
Roblox attributes its growing user engagement to a successful lineup of new games, such as “Grow A Garden” and “Steal a Brainrot.”
Future Outlook for Roblox
Looking ahead, Roblox has updated its guidance for Q4 and fiscal year 2025. For the fourth quarter, the company anticipates revenue between $1.35 billion and $1.4 billion, with expected bookings ranging from $2 billion to $2.05 billion. These projections exceed the consensus estimate of $1.83 billion.
For fiscal year 2025, Roblox expects revenue between $4.826 billion and $4.876 billion, while full-year bookings are projected to be between $6.566 billion and $6.616 billion. This also surpasses the average forecast of $6.16 billion.
Analyst Opinions on RBLX Stock
Analysts remain divided on the long-term potential of RBLX stock. Currently, it holds a Moderate Buy consensus rating on TipRanks, supported by 16 buy ratings, six holds, and one sell. The average price target for Roblox stands at $152.36, indicating a potential upside of 13.9% from current prices. Year-to-date, RBLX has seen an impressive surge of 131%.
