Roblox (NYSE:RBLX) Announces Quarterly Earnings Results

Roblox (NYSE:RBLX) posted its earnings results on Thursday. The company reported ($0.43) earnings per share for the quarter, beating the consensus estimate of ($0.53) by $0.10, Briefing.com reports. Roblox had a negative net margin of 41.15% and a negative return on equity of 770.71%. The business had revenue of $923.76 million for the quarter, compared to analyst estimates of $918.85 million. During the same quarter in the previous year, the business posted ($0.44) EPS. The business’s quarterly revenue was up 19.4% on a year-over-year basis. Roblox updated its FY 2024 guidance to EPS and its Q2 2024 guidance to EPS.

Roblox Stock Performance

Shares of NYSE:RBLX traded up $0.93 during trading on Friday, reaching $31.35. The stock had a trading volume of 15,272,171 shares, compared to its average volume of 8,177,441. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 14.64. The stock has a fifty day simple moving average of $37.81 and a two-hundred day simple moving average of $39.39. The firm has a market capitalization of $19.80 billion, a price-to-earnings ratio of -16.82 and a beta of 1.63. Roblox has a 52 week low of $24.88 and a 52 week high of $47.20.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RBLX. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Roblox from $55.00 to $40.00 and set a “buy” rating for the company in a research note on Friday. JPMorgan Chase & Co. raised shares of Roblox from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $41.00 to $48.00 in a research report on Tuesday, April 23rd. Piper Sandler restated an “overweight” rating and set a $40.00 price objective (down previously from $56.00) on shares of Roblox in a research note on Friday. Wells Fargo & Company decreased their target price on Roblox from $50.00 to $37.00 and set an “overweight” rating for the company in a research report on Friday. Finally, Morgan Stanley reduced their price objective on Roblox from $42.00 to $35.00 and set an “equal weight” rating on the stock in a research note on Friday. Five equities research analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $43.76.

Insiders Place Their Bets

In other Roblox news, CEO David Baszucki sold 200,000 shares of the firm’s stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $44.09, for a total value of $8,818,000.00. Following the sale, the chief executive officer now owns 1 shares of the company’s stock, valued at approximately $44.09. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other news, insider Mark Reinstra sold 12,531 shares of the firm’s stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $40.75, for a total transaction of $510,638.25. Following the completion of the sale, the insider now owns 249,779 shares of the company’s stock, valued at $10,178,494.25. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO David Baszucki sold 200,000 shares of the business’s stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $44.09, for a total transaction of $8,818,000.00. Following the completion of the transaction, the chief executive officer now directly owns 1 shares of the company’s stock, valued at $44.09. The disclosure for this sale can be found here. Insiders sold a total of 512,374 shares of company stock valued at $20,809,338 in the last quarter. Insiders own 22.15% of the company’s stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.