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Roblox (RBLX) Q1 Earnings Miss Estimates, Revenues Up Y/Y

·4-min read

Roblox RBLX reported a loss of 27 cents per share in first-quarter 2022, missing the Zacks Consensus Estimate by 28.57%. The company had reported a loss of 46 cents per share in the year-ago quarter.

Revenues increased 38.8% year over year to $537.13 million but missed the consensus mark by 1.88%. The year-over-year upside can be attributed to the company’s efforts to optimize long-term retention and engagement among consumers.

Net bookings declined 3.2% year over year to $631.21 million, down from $652.25 million in the year-ago quarter.

Revenue by Geography

United States and Canada revenues (66% of total revenues) were up 34.8% year over year to $356.66 million.

Europe revenues (18% of total revenues), on a reported basis, increased 36.6% year over year to $99.2 million.

Revenues in Asia-Pacific, including Australia and New Zealand (9% of total revenues) were up 62.4% year over year, at $45.99 million.

Revenues in the rest of the world (7% of total revenues) rose 63.7% year over year to $35.29 million.

Roblox Corporation Price, Consensus and EPS Surprise

Roblox Corporation Price, Consensus and EPS Surprise
Roblox Corporation Price, Consensus and EPS Surprise

Roblox Corporation price-consensus-eps-surprise-chart | Roblox Corporation Quote

User Base Details

Daily paying users increased roughly from 675,000 to approximately 685,000 in the first quarter. Monetization per daily paying user declined 5% year over year in the reported quarter, mainly offset by an elevated COVID-19 impact in 2021.

In the first quarter, average daily active users (DAUs) were 54.1 million, up 28% year over year, driven by the overall increase in engagement on the Roblox platform.

In the reported quarter, DAUs in India were up 160% year over year. Japan saw three times relative growth in DAUs, reaching 183,000 in the first quarter compared with the year-ago quarter’s levels.

Hours engaged were up 22% year over year, reaching 11.8 billion in the first quarter of 2022.

Operating Details

Developer exchange fees in the first quarter shot up by 23.7%, reaching $147.12 million. Infrastructure and trust & safety expenses rose 50.2% year over year to $141.36 million.

Research & development and sales & marketing expenses were up 83.9% and 45.5% year over year to $177.8 million and $29.1 million, respectively. General & administrative expenses declined 38.8% year over year to $57.8 million.

Adjusted EBITDA came in at $67.9 million compared with the year-ago quarter’s figure of $190.2 million.

Balance Sheet

As of Mar 31, 2022, Roblox had cash and cash equivalents of $3.13 billion compared with $3 billion as of Dec 31, 2021.

Cash flow from operating activities in first-quarter 2022 was $156.4 million compared with the year-ago quarter’s level of $164.5 million. The cash flow provided by operating activities in the previous quarter was $122.2 million.

Free cash flow was $104.7 million in the first quarter compared with the previous quarter’s free cash inflow of $77.3 million and the year-ago quarter’s level of $142.1 million.

Zacks Rank and Stocks to Consider

Currently, Roblox carries a Zacks Rank #4 (Sell).

RBLX shares are down 76.7% in the year-to-date period compared with the Zacks Gaming industry’s plunge of 41.5% and the Consumer Discretionary sector’s fall of 31.9%.

Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, sporting a Zacks Rank #1 (Strong Buy), NeoGames NGMS and WillScot Mobile Mini WSC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aaron’s shares are down 22.6% in the year-to-date period against the Zacks Consumer Services - Miscellaneous industry’s decline of 22.6% and the Consumer Discretionary sector’s fall of 31.9%.

NeoGames shares are down 57.2% in the year-to-date period against the Gaming industry’s decline of 41.6% and the Consumer Discretionary sector’s fall of 31.9%.

WillScot Mobile Mini shares are down 18% in the year-to-date period against the Zacks Furniture industry’s decline of 19.6% and the Consumer Discretionary sector’s fall of 31.9%.


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