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Roblox (RBLX) to Report Q1 Earnings: What's in the Cards?

Zacks Equity Research
·4-min read

Roblox RBLX is set to report first-quarter 2022 results on May 11.

The Zacks Consensus Estimate for revenues is pegged at $641.12 million, indicating a decline of 1.71% from the year-ago quarter’s levels.

The consensus for loss has remained unchanged in the past 30 days and is currently pegged at a loss of 23 cents per share.

Let’s see how things have shaped prior to this announcement.

Roblox Corporation Price and EPS Surprise

Roblox Corporation price-eps-surprise | Roblox Corporation Quote

Factors to Consider

Roblox’s first-quarter performance is expected to have benefited from consumer onboarding, developer growth and a year-over-year rise in user engagement.

In fourth-quarter 2021, the average daily active users (DAU) reached 49.5 million, up 33% year over year.

Roblox reported 28% year-over-year growth in its DAUs, reaching 55.1 million in February 2022.

With people getting back to normal school and work life, the company expects a sequential decline in DAUs in the to-be-reported quarter.

In the fourth quarter of 2021, hours engaged were 10.8 billion, up 28% year over year. Hours engaged rose 21% year over year, reaching 3.8 million in February 2022. The to-be-reported quarter’s performance is expected to have benefited from strong engagement hours growth.

The company expects robust growth in the age demographics between 13-to-16-year-olds and 17-to-24-year-olds in first-quarter 2022. Roblox witnessed a high rate of growth in 17-to-24-year-olds in its user base, comprising almost 20.5% of all DAUs in January 2022.

Roblox’s increasing penetration in user base between 9 to 12 years and even U9 holds promise. This is expected to have aided user growth in the to-be-reported quarter.

Roblox’s developer community’s focus on providing good content featuring better visuals and effects and continued market penetration is expected to have driven first-quarter results.

Key Q1 Highlights

In the first quarter, the National Football League (NFL) teamed up with Roblox to expand its presence in the Metaverse Universe with the launch of NFL Tycoon. The NFL is the first official major sports league to offer a persistent experience on Roblox to sports fans in the Metaverse.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Roblox has an Earnings ESP of 0.00% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

AbCellera ABCL has an Earnings ESP of +20.93% and a Zacks Rank #2. The company is set to announce first-quarter 2022 results on May 10. You can see the complete list of today’s Zacks #1 Rank stocks here.

ABCL is down 48% in the year-to-date period against the Zacks
Medical - Biomedical and Genetics industry’s decline of 24.9% and the Medical sector’s fall of 13%.

Planet Fitness PLNT has an Earnings ESP of +22.68% and a Zacks Rank #2. The company is all set to announce its first-quarter 2022 results on May 10.

PLNT is down 17.4% in the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of 23.2% and the Consumer Discretionary sector’s fall of 23.6%.

Analog Devices ADI has an Earnings ESP of +0.60% and a Zacks Rank #2. It is all set to report its second-quarter fiscal 2022 results on May 18.

ADI is down 10.8% in the year-to-date period against the Zacks Semiconductor - Analog and Mixed industry’s decline of 18.1% and the Computer and Technology sector’s fall of 23.6% .

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Analog Devices, Inc. (ADI) : Free Stock Analysis Report

Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report

AbCellera Biologics Inc. (ABCL) : Free Stock Analysis Report

Roblox Corporation (RBLX) : Free Stock Analysis Report

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