Roblox (NYSE: RBLX), the company that offers a 3D digital world where users can create and play games, is one of my daughters' favorite platforms. They love to collect and spend Robux, the company's virtual currency, which they often ask for as gifts. However, as an investor, I also appreciate the value proposition and growth potential of Roblox's business model.
In the last quarter, Roblox reported a remarkable 20% increase in average daily active users, a 20% rise in hours engaged, and a 38% surge in revenue year over year. These are impressive metrics that demonstrate that Roblox is not a passing fad, but a sustainable and innovative platform.
That being said, I do expect this gaming stock to be a fairly volatile growth vehicle. Roblox will have to continue to innovate to stay ahead of its competitors, and sometimes gaming platforms lose their appeal for extended periods for reasons beyond a company's control.
But I suspect Roblox will ultimately follow a similar trajectory as Nintendo. Despite its rocky history, Nintendo's stock has delivered a whopping 818% total return on capital for shareholders over the past 20 years. That's the power of a beloved gaming platform, especially one that grows with its user base.
(Reuters) - Gaming platform Roblox forecast annual bookings above estimates on Wednesday after it crossed $1 billion in quarterly bookings for the first time on higher in-game spending during the holiday season, sending its shares up 15% before the bell.
In a positive sign for the gaming industry, the global video game market is anticipated to grow 2.8% this year, as it expects robust sales of Microsoft's Xbox and Sony's PlayStation 5 consoles, according to research firm NewZoo.
Roblox forecast annual bookings, generated from in-game purchases of virtual currency "Robux", between $4.14 billion and $4.28 billion, above the estimate of $4.03 billion, according to LSEG data.
Its first-quarter bookings forecast was also above expectations.
Net bookings for the fourth quarter came in at $1.13 billion, hitting a new record for the company and surpassing the estimate of $1.08 billion.
The company has been seeing an uptick in spending on its online gaming platform during the holiday quarter, when players have more time because schools and colleges are closed.
Roblox said the growth "continue to be heavily influenced by older users" above the age of 13.
"A slow and steady improvement in the core technology has allowed our developer communities to build better stuff... (which has) naturally attracted an older audience," Roblox CFO, Michael Guthrie said, underscoring Roblox's attempt at diversifying and aging up its player base.
Roblox which is popular for games such as "Brookhaven", "Adopt Me!" and "Blade Ball", has partnered with a number of brands including Adidas, Lamborghini and L'Oreal to engage fans in its 3D world.
The company reported adjusted EBITDA, a profitability metric looked at by investors, of $259.6 million, beating analysts' expectation of $191.2 million.
Average daily active users rose 22%, to 71.5 million in the fourth quarter.
Artificial intelligence (AI) is an exciting investment trend right now. Generative AI is forecast to become a trillion-dollar market within the next decade, and this will create a lot of investment opportunities along the way.
Some of these investment opportunities are rather obvious, and some have already had parabolic moves, such as Nvidia, which was catapulted into the trillion-dollar club by the AI boom. But others are less obvious plays on AI technology. Here are two I'm loading up on in my own portfolio.
The evolution of AI could boost this metaverse stock
Popular video gaming platform Roblox (NYSE: RBLX) is perhaps the closest thing that exists to a true metaverse experience today. The platform has more than 71 million daily active users who sign up for the platform, create avatars, and explore the experiences available, and millions of developers create (and monetize) unique content.
Roblox gets a cut of all virtual purchases and has some other revenue streams, such as advertising. In 2023, Roblox produced $2.8 billion in revenue.
The platform continues to grow rapidly, with 30% year-over-year revenue growth in the fourth quarter. Management has a long-term goal to scale to 1 billion users and is doing a great job of growing internationally and making its platform available in different ways -- for example, Roblox just became available on Sony PlayStation in the fourth quarter. As more immersive devices become widely adopted, such as those made by Meta Platforms and Apple, Roblox could be a big winner.
Roblox isn't a profitable business just yet, but it is clearly heading in that direction. If it can continue to scale rapidly while achieving profitability, it could be a big winner for investors. __________________________________________________
Sofi is the other one - Not interested in the info on that : Available on link
Wow Bao is bringing its loyalty program, Hot Buns Club, to the metaverse in the form of a virtual scavenger hunt that results in real-life perks Joanna Fantozzi | Apr 10, 2024
Fast-casual Asian bao bun concept Wow Bao announced its latest foray into the metaverse: the company launched a virtual dance club and lounge on Roblox on Wednesday morning. This new gamified experience allows customers with Roblox accounts to don a “bao head” accessory for their avatar, link up their account with Wow Bao’s Hot Buns Club rewards program, and play a scavenger hunt for a chance to win free food.
While other brands like Starbucks have been inching away from Web3-based digital content, which had reached its apex in 2021 and 2022, Wow Bao has been slowly investing more in the metaverse over time. In Nov. 2022, the digital-forward bao concept announced the Hot Buns Club as a tiered NFT membership program as an extension of its Bao Bucks rewards program, as well as the launch of vending machines in the metaverse. Then, in 2023, Wow Bao began minting its first NFTs (known in-universe as “CollectaBaos”). Fans who purchase the NFTs would automatically be enrolled in the rewards club with perks like discounts and free meals.
“We’re just taking the rewards program to another level; it’s an enhancement to get more people through gamification,” Geoff Alexander, CEO of Wow Bao, told NRN. “We have always been early adopters…We are betting on this and believing in it because these last few generations are so involved in technology that we want to be where they are. Those who are in the space applaud us for being where they are.”
Here's how it works: Customers that have a Roblox account can claim one of 10,000 bao bun heads for their avatar to wear, hang out in the virtual lounge, and participate in the virtual scavenger hunt. Fans who are able to play and win the scavenger hunt will receive a coupon to redeem for a free box of baos at their local grocery store, and will be entered for the chance to win free Wow Bao for a year (a free box of baos per week for 52 weeks).
“NFTs might not be as big as they were before, but what we’re trying to do is to offer people the digital CollectaBao as a badge of honor… and we’re making ourselves available to people by offering that,” Alexander said.
The crucial aspect of this program, Alexander said, is the crossover from the metaverse of virtual lounges and digital bun heads to real-life rewards. The virtual gamification builds brand awareness – particularly to the younger generations who tend to use Roblo — while simultaneously rewarding players with free food (or a chance for even more free Wow Bao). If all goes well, in the future, Wow Bao could roll out more games for bao bun fans to play that could result in more real-life perks or even get delivery platforms involved somehow.
“I would love to see great enhancement with this, but it’s going to depend on user adoption,” Alexander said. “We could use education about our product in [the metaverse] and we can show people how to make baos in-game, we could do more contests…we have infinite ideas; it’s just about picking the right path to go down.”
Roblox Taps PubMatic (PUBM) to Offer Programmatic Immersive Video Ads on Its Platform New partnership will unlock scaled access to the Roblox audience for advertisers along with premium brand demand for the platform April 10, 2024 09:05 ET
REDWOOD CITY, Calif., April 10, 2024 (GLOBE NEWSWIRE) -- PubMatic (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today announced a partnership with Roblox (NYSE: RBLX), a global immersive platform for communication and connection, to enable programmatic media buying of Roblox’s video advertising inventory when it becomes available later this year. The partnership will allow more brands to seamlessly reach Roblox’s global community of over 71 million daily active users1, nearly half of them representing the highly coveted Gen Z demographic, while Roblox will gain scaled access to premium brand advertising demand.
Since 2006, Roblox has built a global community with millions of creators and immersive experiences, from social hangouts and gaming, to concerts, sports, fashion shows, education, and entertainment. With one of the most robust virtual economies in the world, the expansion of Roblox’s advertising business will enable seamless access to this community and allow brands to activate on the platform without creating custom-built content. Like all advertising on Roblox, programmatic ads must comply with the platform’s Community Standards and Advertising Standards grounded in principles of making advertising safe, transparent, and respectful of people’s privacy while still creating opportunities for the community to innovate, engage and earn. This also means Roblox users will know when they are interacting with ad content, and ads will continue to only be served to people ages 13 and up.
“We are committed to making it easier for brands to foster connections with our highly engaged community on Roblox,” said Stephanie Latham, VP of global partnerships, Roblox. “Partnering with PubMatic unlocks the opportunity for more advertisers to seamlessly engage this community through preferred content formats, like video, while providing advertiser controls around brand suitability. The ad experience we offer on the platform is built to be immersive instead of disruptive, and true to the Roblox experience that our community of creators, users, and brands know and love."
“We are thrilled to partner with Roblox to deliver a pioneering advertising solution that marries monetization with user experience,” said Kyle Dozeman, Chief Revenue Officer, Americas at PubMatic. “Advertising creates significant opportunities for many companies, and it funds and fuels the endless potential of the internet. We look forward to empowering Roblox to maintain full control over its advertising ecosystem while enabling advertisers to reach their target audiences effectively.”
Immersive Video Ads Availability:
Roblox immersive video ads are going through an alpha test and will become broadly available to advertisers on Roblox later this year. The video ads inventory will ultimately be made available to PubMatic buyers via programmatic guaranteed, private marketplaces (PMPs), auction package deals and open exchange to maximize access while ensuring unparalleled control and brand suitability. This will enable the platform to tap into PubMatic’s vast demand, including supply path optimization deals with advertising agencies and premium brands. The new partnership also complements PubMatic’s strength in connected TV, online video, mobile app and display with expansion into the social and native advertising segments.
To learn more about the partnership, reach out to PubMatic representatives.
About PubMatic: PubMatic (Nasdaq: PUBM) is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, our infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, we improve outcomes for our customers while championing a vibrant and transparent digital advertising supply chain.
(Reuters) - Roblox cut its annual bookings forecast on Thursday, in a sign that people were dialing back on spending within its video-gaming platform amid an uncertain economic outlook and elevated levels of inflation.
The company's shares fell over 25% in premarket trading.
Roblox Corporation (RBLX)View quote details NYSE - Nasdaq Real Time Price (USD) 39.03-1.51(-3.72%) At close:4:00PM EDT 27.98-11.05 (-28.31%) Pre-market: 8:38AM EDT
The lowered forecast marks the latest downbeat report from the gaming industry, which has laid off hundreds of employees and shut studios this year to cope with declining demand.
Electronic Arts also gave a weak revenue forecast earlier this week.
Roblox now expects full-year bookings to be between $4 billion and $4.10 billion, down from its earlier forecast of $4.14 billion to $4.28 billion. Its second-quarter bookings forecast of $870 million to $900 million was also below estimates.
The company said it was conservative with its second-quarter forecast as the Easter holiday, a period of high engagement on its platform, was during the first quarter this year compared with the second quarter a year earlier.
The gaming industry is grappling with lower engagement, which is expected to keep growth in the PC and console market below pre-pandemic levels through 2026, according to research firm Newzoo.
The number of hours gamers aged 13 or more spent on Roblox's platform grew by 19% in the first quarter, the lowest growth rate for the company in about two years.
"That's not unusual," Roblox Chief Financial Officer Michael Guthrie said, adding that the company was adding a lot of older gamers who take a while to get settled and spend more time on the platform.
Roblox has also turned to digital ads to diversify its revenue. Earlier this month, it started displaying virtual billboards featuring content from brands such as Walmart and Warner Bros Discovery to users on its platform.
Roblox will build the infrastructure for the ad platform in 2024 and start providing forecast for ad revenue in 2025, Guthrie added.
Roblox (NYSE:RBLX) shares plunged more than 28% in premarket trading on Thursday after the video game platform company offered up a weaker-than-expected bookings forecast for the coming quarter and lowered it for the remainder of 2024.
San Mateo, Calif-based Roblox, which counts 9 to 12 year-olds as its largest demographic, expects second-quarter bookings to be between $870M and $900M, below the $902.5M estimate. Second-quarter revenue is forecast to be between $855M and $880M, above the $805.2M estimate.
It expects to lose between $265M and $267M on a net basis, better than the $345.5M that was expected.
The company also lowered its full-year bookings forecast, as it now sees the closely watched metric coming in between $4B and $4.1B, down from a prior outlook of $4.14B to $4.28N.
Despite the weak bookings forecast, Roblox raised its full-year sales outlook, as it now sees full-year revenue between $3.45B and $3.53B, up from a previous range of $3.3B to $3.4B. Analysts were expecting $3.36B.
It also upped its forecast for annual net loss on a consolidated basis, as Roblox now expects to lose between $1.04B and $1.1B, up from a prior view of $1.37B to $1.4B.
Free cash flow for the year is expected to be between $350M and $420M while adjusted EBITDA is forecast to be between $95M and $147M. The company said it will no longer refer to covenant adjusted EBITDA in its letter to shareholders and earnings releases.
First quarter results Roblox lost $0.43 per share during the fourth-quarter, as bookings climbed 19.4% year-over-year to $923.8M. Analysts had expected a loss of $0.53 per share and $892.8M in bookings.
Revenue for the period came in at $801.3M, above the $769.3M estimate. Free cash flow for the period was $191.M.
Average daily active users rose 17% year-over-year to finish the period at 77.7M, above the 77.29M estimate. Monthly unique payers also climbed, up 13% year-over-year, to finish at 15.6M. Average bookings per monthly unique player rose 6% to $19.68.
Gamers continued to take to the platform, as hours engaged came in at 16.7B for the quarter, up 15% year-over-year, but below the estimate of 17.05B.
The company will host a conference call at 8:30 a.m. EST to discuss the results.
Gaming metaverse operator Roblox (NYSE:RBLX) announced better-than-expected revenue in Q3 CY2024, with sales up 28.8% year on year to $919 million. On the other hand, next quarter’s revenue guidance of $947.5 million was less impressive, coming in 2.1% below analysts’ estimates. Its GAAP loss of $0.37 per share was also 3.2% above analysts’ consensus estimates.
Roblox (RBLX) Q3 CY2024 Highlights: Bookings: $1.13 billion vs analyst estimates of $1.02 billion (10.8% beat)
Revenue: $919 million vs analyst estimates of $884.1 million (3.9% beat)
EPS: -$0.37 vs analyst estimates of -$0.38 (3.2% beat)
EBITDA: $54.96 million vs analyst estimates of $149.8 million (63.3% miss)
Revenue Guidance for Q4 CY2024 is $947.5 million at the midpoint, below analyst estimates of $968.2 million
EBITDA guidance for the full year is $135 million at the midpoint, below analyst estimates of $667 million
Gross Margin (GAAP): 25.9%, up from 22.4% in the same quarter last year
Operating Margin: -30.4%, up from -42.1% in the same quarter last year
EBITDA Margin: 6%, down from 11.4% in the same quarter last year
Free Cash Flow Margin: 23.7%, up from 12.5% in the previous quarter
Daily Active Users: 88.9 million, up 18.7 million year on year
Market Capitalization: $27.92 billion
“Roblox’s exceptional Q3 results demonstrate the strength of our platform and the effectiveness of our growth strategies. We’re particularly proud of the progress we’ve made in empowering creators, fostering social connections, and expanding our global reach. As we look ahead, we remain committed to building the world’s largest social platform for play, and we’re confident that our continued innovation and focus on safety will drive long-term value for our shareholders and the broader Roblox community,” said David Baszucki, founder and CEO of Roblox.
Company Overview Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system.
Video Gaming Since videogames were invented in the 1970s, they have gradually taken more share of entertainment time. Ubiquitous mobile devices have powered a surge in “snackable” games that can be played on the go. Over time, games have developed more social engagement features where friends can play games together over the internet. The business models of games publishers have become less volatile due to digitization of distribution, in game monetization, and like Hollywood, an increasing dependence on surefire hit franchises. Covid driven lockdowns accelerated adoption and usage of videogames – a trend that has not slowed.
Sales Growth A company’s long-term performance can give signals about its business quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Roblox grew its sales at an exceptional 26.5% compounded annual growth rate. This is encouraging because it shows Roblox’s offerings resonate with customers, a helpful starting point.
Roblox Total Revenue This quarter, Roblox reported robust year-on-year revenue growth of 28.8%, and its $919 million of revenue topped Wall Street estimates by 3.9%. Management is currently guiding for a 26.3% year-on-year increase next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 19.9% over the next 12 months, a deceleration versus the last three years. This projection is still noteworthy and shows the market sees success for its products and services.
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User Growth As a video gaming company, Roblox generates revenue growth by expanding both the number of people playing its games as well as how much each of those players spends on (or in) their games.
Over the last two years, Roblox’s daily active users, a key performance metric for the company, increased by 21.6% annually to 88.9 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its platform's popularity is exploding.
In Q3, Roblox added 18.7 million daily active users, leading to 26.6% year-on-year growth. The quarterly print was higher than its two-year result, suggesting its new initiatives are accelerating user growth.
Revenue Per User Average revenue per user (ARPU) is a critical metric to track for consumer internet businesses like Roblox because it measures how much revenue each user generates, which is a function of how much paying users spend on its games.
Roblox’s ARPU growth has been subpar over the last two years, averaging 1.6%. This isn’t great, but the increase in daily active users is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Roblox tries boosting ARPU by taking a more aggressive approach to monetization, it’s unclear whether users can continue growing at the current pace.
This quarter, Roblox’s ARPU clocked in at $10.34. It grew 1.7% year on year, slower than its user growth.
Key Takeaways from Roblox’s Q3 Results We enjoyed seeing Roblox increase its number of users this quarter. We were also excited its revenue, bookings, and EPS outperformed Wall Street’s estimates. On the other hand, its full-year revenue and EBITDA guidance missed analysts’ expectations. Overall, this quarter was softer due to the weaker guidance, but the market seems very excited about the 10%+ bookings beat (bookings also accelerated from 22% year-on-year growth last quarter to 34% this quarter). The stock traded up 17.3% to $50.62 immediately following the results.
Online gaming and social platform Roblox (RBLX) on Thursday handily beat Wall Street's targets for the first quarter and guided higher for the current period. Roblox stock jumped in early trading.
The San Mateo, Calif.-based company lost 32 cents a share on bookings of $1.21 billion in the March quarter. Analysts polled by FactSet had expected Roblox to lose 40 cents a share on bookings of $1.14 billion. In the year-earlier period, it lost 43 cents a share on bookings of $924 million.
Roblox reported 97.8 million average daily active users, up 26% year over year, in the first quarter. Analysts had expected 93.1 million.
Based on the midpoint of its guidance, Roblox expects bookings in the second quarter of $1.18 billion, vs. the consensus estimate of $1.17 billion.
Roblox also raised its full-year guidance. It now expects 2025 bookings of $5.285 billion to $5.36 billion. The midpoint of $5.32 billion would translate to year-over-year growth of 22%. Analysts were modeling for bookings of $5.27 billion.
Roblox has been investing heavily to build out its youth-centric version of the metaverse, a 3D virtual space for people to socialize and play games. Its online experiences range from gaming and hangouts to concerts, sports, fashion shows, education and entertainment.
Roblox Stock Approaching Buy Point "In Q1 2025, all of our results were above the guidance we provided on our Q4 2024 earnings call as we continue to deliver on several key growth initiatives," Chief Executive David Baszucki said in a news release. "In addition to our focus on raw performance and quality, investments in the virtual economy and search and discovery are driving growth in platform monetization, bookings, and creator earnings."
In premarket trading on the stock market today, Roblox stock advanced more than 8% to 72.99.
Roblox stock has formed a cup base with a buy point of 75.74, according to IBD MarketSurge charts.
RBLX - to gap up from 124.94 to curr (will change) 148.01 (+23.07)
Roblox: Q2 Earnings Snapshot 08:08:00 AM ET, 07/31/2025 - Associated Press
SAN MATEO, Calif. (AP) — SAN MATEO, Calif. (AP) — Roblox Corp. (RBLX) on Thursday reported a loss of $278.4 million in its second quarter.
On a per-share basis, the San Mateo, California-based company said it had a loss of 41 cents.The results exceeded Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for a loss of 46 cents per share.The online gaming platform posted revenue of $1.08 billion in the period. Its adjusted revenue was $1.44 billion, which also beat Street forecasts. Nine analysts surveyed by Zacks expected $1.29 billion.For the current quarter ending in September, Roblox said it expects revenue in the range of $1.59 billion to $1.64 billion. The company expects full-year revenue in the range of $5.87 billion to $5.97 billion.
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