Roblox Corporation (RBLX) Earnings Report: A Mixed Bag of Results
On Thursday, May 9, 2024, Roblox Corporation (RBLX) unveiled its earnings before the market opened, presenting a mixed bag of results that caught the attention of investors and analysts alike. The company reported an earnings per share (EPS) of -$0.43, surpassing the anticipated -$0.53, indicating a better-than-expected performance in terms of profitability. Despite this positive surprise in earnings, Roblox's revenue for the quarter was $801.3 million, which did not meet the expected figure of $922.75 million. This discrepancy between earnings and revenue highlights the challenges and dynamics the company faced during the quarter.
According to Zacks Investment Research, Roblox's financial performance for the first quarter ended March 2024 was closely scrutinized against Wall Street estimates and the company's performance in the previous year. The analysis revealed that Roblox managed to narrow its loss per share to -$0.43 from -$0.44 a year ago, marking a slight improvement in its profitability. However, the company's revenue of approximately $923.76 million, although representing an increase from the $773.82 million reported in the year-ago period, fell short of the Zacks Consensus Estimate by 0.78%. This mixed performance underscores the volatility and unpredictability in the gaming industry, where Roblox operates.
The financial details further reveal that Roblox experienced a significant drop in its stock price, plunging 29.2% in premarket trading following the earnings announcement. This sharp decline was attributed to the company's revenue falling substantially short of expectations and a pessimistic outlook for the current quarter. The net losses reported by Roblox amounted to $270.6 million, or 43 cents per share, a slight increase from the previous year's losses of $268.3 million, or 44 cents per share. This financial situation paints a picture of the challenges Roblox faces in maintaining profitability and meeting investor expectations.
Delving deeper into Roblox's financial health, the company's gross profit stood at approximately $622.4 million, with a reported operating income of around -$302.3 million. The EBITDA, a measure of a company's overall financial performance, also reflected a similar figure of approximately -$302.3 million. These figures, coupled with a cost of revenue of about $178.9 million and an income before tax showing a loss of approximately $270.9 million, highlight the financial pressures Roblox is under. Despite these challenges, the company's ability to outperform earnings estimates suggests a potential for recovery and growth in the future.
In summary, Roblox Corporation's latest earnings report presents a complex picture of a company navigating the ups and downs of the gaming industry. While the better-than-expected EPS offers a glimmer of hope, the shortfall in revenue and the subsequent stock price drop reflect the ongoing challenges Roblox faces. As the company looks to the future, it will be crucial for it to address these challenges and capitalize on opportunities to improve its financial health and operational achievements.
| Symbol | Price | %chg |
|---|---|---|
| 259960.KS | 359500 | 0 |
| 7974.T | 13200 | 0 |
| 251270.KS | 61400 | 0 |
| 036570.KS | 207000 | 0 |
UBS Upgrades Roblox (NYSE:RBLX) to "Buy"
- Roblox's stock has nearly doubled in value since April 2025, showcasing significant growth.
- The company has reported over 20% quarterly revenue growth year-over-year for seven consecutive quarters.
- "Grow a Garden," a new game on Roblox, has significantly contributed to the company's revenue growth and popularity.
On June 22, 2025, UBS updated its rating for Roblox (NYSE:RBLX) to "Buy," with the stock priced at $102.09. Roblox is a prominent player in the online gaming industry, known for its platform that allows users to create and play games. It competes with major companies like Nintendo, Electronic Arts, and Take-Two Interactive.
Roblox has been a standout stock in 2025, nearly doubling its value since April. The stock is currently trading at $103.71, close to its 52-week high of $104.63. This surge is driven by consistent revenue growth, with over 20% quarterly revenue growth year-over-year for seven consecutive quarters.
A significant factor in Roblox's success is the popularity of its new game, "Grow a Garden," which is trending on the platform. This game has contributed to the company's impressive performance and has helped it outpace competitors in revenue growth. Despite its high valuation, Roblox's growth prospects make it an attractive long-term investment.
Today, RBLX has fluctuated between a low of $101.34 and a high of $104.63, marking its highest price over the past year. The lowest price it reached in the past year was $34.62. The company's market capitalization is approximately $70.34 billion, with a trading volume of 3.81 million shares, as highlighted by Fool.com.
Piper Sandler Adjusts Roblox (NYSE:RBLX) Rating to "Overweight"
- Piper Sandler has adjusted the grade of Roblox (NYSE:RBLX) to "Overweight" with a stock price of approximately $100.17.
- Roblox's impressive 29% revenue growth is driven by its creator economy, outpacing Take-Two Interactive's 5-6% outlook.
- The current price of RBLX on the NYSE is $100.33, showing a 3.25% increase and highlighting significant volatility and growth potential.
On June 16, 2025, Piper Sandler adjusted the grade of Roblox (NYSE:RBLX) to "Overweight." Despite being labeled as a downgrade, the grade remained "Overweight," with the stock price at approximately $100.17. Roblox is a prominent player in the gaming industry, known for its innovative platform that empowers creators to build and monetize experiences.
Roblox's growth fundamentals are impressive, with a 29% revenue growth, outpacing Take-Two Interactive's 5-6% outlook. This growth is driven by Roblox's creator economy, which enhances user engagement and generates network effects. In contrast, Take-Two relies on blockbuster franchises like Grand Theft Auto and NBA 2K, focusing on premium game sales and content updates. The current price of RBLX on the NYSE is $100.33, reflecting a 3.25% increase.
The stock has fluctuated between $98.36 and $100.73 today. Over the past year, RBLX has seen a high of $100.74 and a low of $34.41, indicating significant volatility and growth potential. Roblox's market capitalization is approximately $68.05 billion, with a trading volume of 5.8 million shares. This highlights the company's strong market presence and investor interest. As the gaming industry evolves, Roblox's platform-based model, which supports a thriving virtual economy, offers a compelling investment appeal.
Benchmark Reaffirms Buy Rating on Roblox, Highlights AI and Monetization as Growth Drivers
Roblox (NYSE:RBLX) received a reaffirmed Buy rating from Benchmark analysts, who maintained a $71 price target, citing the company’s AI-driven content creation, expanding monetization, and growing user engagement as key catalysts for long-term growth.
Roblox’s strategy for market expansion is built on three pillars: AI-assisted development, robust monetization, and broad user engagement. The introduction of the open-source Cube 3D model is accelerating content creation while expanding creative possibilities for developers, potentially reshaping game development on the platform.
With an increasingly engaged user base and high-profile collaborations with major intellectual properties (IP), Roblox continues to strengthen its competitive positioning. The company’s approach combines AI-driven game development, targeted advertising, and friend-based referral systems, fostering a highly interactive ecosystem that boosts both user engagement and developer earnings.
Looking ahead, Roblox aims for 10% of total industry content revenue to flow through its platform, reinforcing its strong developer payout structure and AI-enhanced innovation pipeline.
With a proven ability to support both major studios and independent creators, the company remains well-positioned for sustained growth in the global gaming market.
Benchmark Reaffirms Buy Rating on Roblox, Highlights AI and Monetization as Growth Drivers
Roblox (NYSE:RBLX) received a reaffirmed Buy rating from Benchmark analysts, who maintained a $71 price target, citing the company’s AI-driven content creation, expanding monetization, and growing user engagement as key catalysts for long-term growth.
Roblox’s strategy for market expansion is built on three pillars: AI-assisted development, robust monetization, and broad user engagement. The introduction of the open-source Cube 3D model is accelerating content creation while expanding creative possibilities for developers, potentially reshaping game development on the platform.
With an increasingly engaged user base and high-profile collaborations with major intellectual properties (IP), Roblox continues to strengthen its competitive positioning. The company’s approach combines AI-driven game development, targeted advertising, and friend-based referral systems, fostering a highly interactive ecosystem that boosts both user engagement and developer earnings.
Looking ahead, Roblox aims for 10% of total industry content revenue to flow through its platform, reinforcing its strong developer payout structure and AI-enhanced innovation pipeline.
With a proven ability to support both major studios and independent creators, the company remains well-positioned for sustained growth in the global gaming market.
Roblox Shares Jump 20% as Company Raises Full-Year Bookings Guidance
Roblox (NYSE:RBLX) saw its shares surge around 20% intra-day today after the company lifted its full-year bookings guidance, signaling strong demand despite recent challenges.
The gaming platform now expects fiscal 2024 bookings between $4.34 billion and $4.37 billion, up from its previous forecast of $4.18 billion to $4.23 billion and surpassing the consensus estimate of $4.22 billion. This guidance boost came as Roblox reported strong third-quarter results, with bookings reaching $1.13 billion, well above the expected $1.02 billion.
Despite recent controversies, including Turkey’s August ban over child safety concerns and allegations from Hindenburg Research questioning user metrics and safety practices, Roblox continued to perform well. The company’s daily active users jumped 27% year-over-year to 88.9 million, marking its largest spike in nearly two years. Roblox has also been actively expanding its offerings to appeal to older audiences, aiming to broaden its user base and boost engagement.
Roblox Shares Jump 20% as Company Raises Full-Year Bookings Guidance
Roblox (NYSE:RBLX) saw its shares surge around 20% intra-day today after the company lifted its full-year bookings guidance, signaling strong demand despite recent challenges.
The gaming platform now expects fiscal 2024 bookings between $4.34 billion and $4.37 billion, up from its previous forecast of $4.18 billion to $4.23 billion and surpassing the consensus estimate of $4.22 billion. This guidance boost came as Roblox reported strong third-quarter results, with bookings reaching $1.13 billion, well above the expected $1.02 billion.
Despite recent controversies, including Turkey’s August ban over child safety concerns and allegations from Hindenburg Research questioning user metrics and safety practices, Roblox continued to perform well. The company’s daily active users jumped 27% year-over-year to 88.9 million, marking its largest spike in nearly two years. Roblox has also been actively expanding its offerings to appeal to older audiences, aiming to broaden its user base and boost engagement.
Roblox Corporation (NYSE:RBLX) Faces Legal Challenges Amid Positive Outlook from Wells Fargo
- Wells Fargo maintains an "Overweight" rating on Roblox Corporation (NYSE:RBLX), raising its price target from $46 to $54.
- Roblox is currently under investigation by The Schall Law Firm for potential securities law violations.
- Edelson Lechtzin LLP is also investigating Roblox for potential securities fraud and breach of fiduciary duty claims.
Roblox Corporation (NYSE:RBLX) is a leading online gaming platform that allows users to create and play games created by other users. It has gained significant popularity, especially among younger audiences. As of October 8, 2024, Wells Fargo maintained an "Overweight" rating for Roblox, with the stock priced at $40.51. The bank also raised its price target from $46 to $54, as highlighted by TheFly.
Despite the positive outlook from Wells Fargo, Roblox is currently facing legal challenges. The Schall Law Firm has launched an investigation into potential securities law violations by Roblox. This investigation seeks to determine if the company issued false or misleading statements or failed to disclose important information to investors. Shareholders are encouraged to participate in this investigation to address any potential infractions.
Additionally, Edelson Lechtzin LLP is conducting a separate investigation into potential securities fraud and breach of fiduciary duty claims against Roblox. This investigation is on behalf of investors holding common stock in the company. These legal proceedings could have significant implications for Roblox and its shareholders.
The current stock price of Roblox is $40.51, reflecting a decrease of 2.13% or $0.88. The stock has fluctuated between a low of $37.51 and a high of $40.52 today. Over the past year, Roblox has seen a high of $48.43 and a low of $29.55. The company's market capitalization is approximately $26.22 billion, with a trading volume of 29.37 million shares.
