Roblox Earnings: RBLX stock tanks after moribund second quarter


UPDATE: Roblox stock tanked nearly 14% afterhours following second quarter results that left the market underwhelmed. Revenue of $591 million was well below consensus of $626 million. Bookings of $640 million was down 4% YoY. GAAP EPS of $-0.30 missed consensus by 5 cents. Though average daily active users was up 21% YoY to 52.2 million, average bookings per daily active user was down 21% YoY to $12.25. RBLX shares are off 12.9% in Wednesday's premarket at $41.23.

  • Roblox reports earnings after the market closes on August 9.
  • Wall Street expects adjusted EPS of $-0.26 of $626 million in revenue.
  • RBLX stock has been in an uptrend since June 16 with shares rising 100%.

Though the Roblox (RBLX) stock price has doubled since June 16, shares appear intimidated in the lead-up to the videogame platform's second-quarter earnings in Tuesday's post-market. RBLX stock lost some ground on Monday and is down 1.9% on Tuesday's premarket at $48.

Also readApple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues

Wall Street expects adjusted earnings per share (EPS) of $-0.26 on revenue of $626 million. In the same quarter last year, Roblox produced a similar adjusted EPS of $-0.26 on sales of $665.5 million. The market is forecasting a continued drop in revenue then. In Q1, the company produced revenue of $631 million.

Roblox stock earnings

The least one can say is that RBLX is trading above the suggested retail price of $45 at its March 2021 direct listing. Of course this is 18 months later, and RBLX is trading 65% off its all-time high from November of last year. The market remains worried that the end of the pandemic's stay-at-home lifestyle means slower growth in bookings for the DIY videogame platform.

Roblox missed on both top and bottom lines for both of the two most recent quarters, so the optimism is scant with this one. Of the seven most recent analyst revisions to Q2 EPS, six were downward revisions.

NPD Group issued a report saying overall videogame fell by 13% YoY to $12.35 billion in the second quarter.

On a more positive note, last week MKM Partners raised its price target on Roblox stock from $28 to $40. The research firm said Roblox's bookings had strengthened faster than expected.

Management previously said May's daily active user figure had grown to 50.4 million, which was a 17% YoY increase. Some observers are taking that to mean Roblox may serve up a largescale revenue beat, but others are taking a wait-and-see approach. Management's estimate that May revenue fell just shy of $200 million also points toward a beat since that figure would have grown approximately 29% YoY.

Roblox stock forecast

From the daily chart below, it is easy to make out that Roblox stock has been on a serious uptrend since mid-June when it put in a higher low that signaled positively to the broader market. RBLX stock has largely been riding the 9-day and 21-day moving averages as support ever since as its uptrend has been slow and steady. 

The videogame stock easily made it through resistance at $45 and has unsurprisingly stalled out just below the next major resistance level at $52.50. A solid beat on Tuesday will lead to overcoming this obstacle as well that served as resistance in late March. After that is the support-turned-resistance level at $60.50.

The Moving Average Convergence Divergence (MACD) has been showing strongly bullish pressure for some time. Look for RBLX to use its primary moving averages for support. This stock seems unlikely to undergo another drastic sell-off at the moment.

RBLX stock chart

RBLX daily chart

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

GBP/USD extends recovery gains to near 1.3250, as BoE looms

GBP/USD extends recovery gains to near 1.3250, as BoE looms

GBP/USD extends the recovery to near 1.3200 in European trading on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements. 

GBP/USD News
EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD stays strongly bid toward 1.1200 in the European session on Thursday. The pair capitalizes on a renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday. 

Gold News
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures