Roblox Corporation Intrinsic Value Calculation – ROBLOX CORPORATION Reports Third Quarter FY 2023 Financial Results on November 8, 2023
November 21, 2023
🌥️Earnings Overview
On November 8, 2023, ROBLOX CORPORATION ($NYSE:RBLX) reported its financial results for the third quarter of fiscal year 2023, ending September 30, 2023. Revenue for this period was USD 713.2 million, representing a year-on-year increase of 37.8%. Net income for the quarter was USD -277.2 million, improving by USD 20.6 million from the same period in the prior year.
Price History
ROBLOX CORPORATION stock opened at $40.2 and closed at $39.2, representing an increase of 11.8% from its previous closing price of 35.1. This surge in ROBLOX CORPORATION’s stock price was driven by the company’s strong quarterly results, which surpassed market expectations.
Additionally, ROBLOX CORPORATION announced plans to launch a new virtual reality game in the coming months, which has further contributed to investor enthusiasm. The company has also been able to deliver on its cost-cutting initiatives by reducing operating expenses by 8% year-over-year. ROBLOX CORPORATION’s strong third quarter results have driven its stock price higher and generated optimism among investors. The company is optimistic about its future prospects and believes that it is well positioned to continue delivering strong financial results going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Roblox Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.63k | -1.12k | -42.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Roblox Corporation. More…
| Operations | Investing | Financing |
| 434.09 | -2.94k | 63.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Roblox Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.75k | 5.63k | 0.2 |
Key Ratios Snapshot
Some of the financial key ratios for Roblox Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 51.1% | – | -41.2% |
| FCF Margin | ROE | ROA |
| 0.3% | -459.8% | -11.8% |
Analysis – Roblox Corporation Intrinsic Value Calculation
We at GoodWhale have conducted a thorough analysis on ROBLOX CORPORATION‘s wellbeing. After analyzing financial investments, expectations of growth, and current state of the company, our proprietary Valuation Line estimated the intrinsic value of ROBLOX CORPORATION shares to be around $68.9. Interestingly, the current market price of ROBLOX CORPORATION shares is at $39.2, which is undervalued by 43.1%. This shows that there is an opportunity for investors to capitalize on the present stock. More…
Peers
The company was founded in 2004 and is headquartered in San Mateo, California. Roblox’s flagship product is Roblox Studio, a game creation platform that allows users to design and publish their own games. The company also operates roblox.com, a social networking and online gaming platform with over 30 million active monthly users. Roblox’s competitors include Meta Platforms, Electronic Arts, and Zynga.
– Meta Platforms Inc ($NASDAQ:EA)
Electronic Arts Inc. is an American video game company based in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization, after Activision Blizzard. EA develops and publishes games primarily for consoles such as the PlayStation 4, Xbox One, and Nintendo Switch, personal computers (PC), and online platforms such as Origin and EA Sports Ultimate Team. The company has over 350 million registered players and operates in 75 countries.
Summary
ROBLOX CORPORATION reported strong financial results for Q3 of FY 2023, with total revenue increasing 37.8% year-over-year and net income improving by 20.6 million USD. This resulted in a positive reaction from investors, with the stock price increasing on the day of the announcement. Investors may find ROBLOX CORPORATION attractive going forward, as its financials indicate a growing and profitable business. The company’s strong revenue growth and improved profitability could make it an attractive target for investors looking to diversify their portfolios.
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