ROBLOX CORPORATION Reports Record Fourth Quarter Earnings for FY2022

Earnings Overview

ROBLOX CORPORATION ($NYSE:RBLX) reported their FY2022 Q4 earnings results on December 31, 2022, which showed a decrease in total revenue of 102.3%, down to USD -289.9 million compared to the same quarter the previous year. Net income, however, increased by 1.8% to USD 579.0 million.

Transcripts Simplified

Roblox Corporation reported strong fourth quarter results, with bookings of $899 million, up 17% year-over-year. The company has seen global growth, with Europe and APAC up 29% year-on-year.

Additionally, their 17-24 year old segment grew at 39% year-on-year for bookings. Roblox had a record 65 million DAUs in January and burned almost no cash in 2022. On an adjusted basis, their Q4 EBITDA was $183 million or 20.3% of bookings. Roblox is focused on innovation and continues to roll out voice and facial animation capabilities, in addition to eye tracking, arm tracking, and audio stimulation.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Roblox Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Roblox Corporation are shown below. More…

Market Price

On Wednesday, ROBLOX CORPORATION reported record fourth quarter earnings for fiscal year 2022. The company’s stock opened at $42.1 and closed the trading day at $45.1, representing a 26.4% increase from its previous closing price of 35.7. The performance of ROBLOX CORPORATION stock made it one of the top most gaining stocks in the entire market on that day. The strong quarterly earnings report demonstrates the company’s financial success in spite of the global pandemic and economic recession. ROBLOX CORPORATION also recorded an impressive growth in its active user base, which has grown by more than 20% compared to the same period last year.

The company’s user engagement and revenue growth have been strong throughout the quarter, while its operating efficiency has also improved significantly. The exceptional fourth quarter performance bodes well for ROBLOX CORPORATION’s future prospects in the coming year. The company is well positioned to further capitalize on its already strong market position and continue to expand its user base and monetization strategies. With the recent surge in stock prices, ROBLOX CORPORATION is well positioned to deliver further value and profits for investors in the near future. Live Quote…

Analysis

At GoodWhale, we have examined the fundamentals of ROBLOX CORPORATION and our Risk Rating has determined that this is a medium risk investment in terms of financial and business aspects. We have detected 1 risk warning in the cashflow statement, which can be viewed by registering on our website. We understand that making an informed decision is of utmost importance when it comes to investing your hard-earned funds, and so we encourage you to check in with GoodWhale for a thorough assessment of the company’s practices and performance. 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 their fiscal year 2022 fourth quarter earnings results on December 31, 2022. Total revenue was down 102.3% from the same quarter the previous year, but net income increased by 1.8%. The stock price responded positively to the news. Investors should consider the revenue decline and weak outlook for the next quarters before investing in this company’s stock.

The net income increase may be a sign of an improving financial outlook. Investors should do their due diligence and research the company’s financials to determine if ROBLOX CORPORATION is a good investment for them.