Gaming metaverse operator Roblox (NYSE:RBLX) will be reporting earnings tomorrow before market hours. Here's what to look for.
Roblox met analysts' revenue expectations last quarter, reporting revenues of $801.3 million, up 22.3% year on year. It was a weak quarter for the company, with underwhelming bookings guidance for the next quarter. It reported 77.7 million daily active users, up 17.5% year on year.
Is Roblox a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Roblox's revenue to grow 29.7% year on year to $883.1 million, improving from the 15.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.39 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Roblox has missed Wall Street's revenue estimates twice over the last two years.
Looking at Roblox's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Electronic Arts's revenues decreased 13.7% year on year, beating analysts' expectations by 5.3%, and Pinterest reported revenues up 20.6%, in line with consensus estimates.
Read our full analysis of Electronic Arts's results here and Pinterest's results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Roblox is up 10.9% during the same time and is heading into earnings with an average analyst price target of $42.2 (compared to the current share price of $41.2).
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