Video game developer Roblox (NYSE:RBLX) rallied in trading today after its bookings surged in the fourth quarter. Indeed, bookings soared 25% year-over-year to $1.12 billion, ahead of estimates of $1.05 billion. The company defines bookings as revenue plus changes in deferred revenue and non-cash adjustments.
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Roblox’s Average Daily Active Users (DAUs) were 71.5 million in Q4, up 22% year-over-year, while average bookings per DAU was $15.75, a growth of 3% year-over-year.
However, the company’s losses in the fourth quarter widened year-over-year. It reported a loss of $0.52 per share in Q4 compared to a loss of $0.48 per share in the same period last year. Analysts expected the company to report a loss of $0.55 per share.
Looking forward to the first quarter, Roblox estimates revenues between $755 million and $780 million, while bookings will likely be in the range of $910 million to $940 million. Net loss is expected to range from $347 million to $342 million in the first quarter. In FY24, revenues are expected to be between $3.3 billion and $3.4 billion, while net loss is expected to range from $1.4 billion to $1.36 billion.
What Is the Forecast for Roblox Stock?
Analysts remain cautiously optimistic about RBLX stock with a Moderate Buy consensus rating based on 14 Buys, four Holds, and three Sells. Over the past year, RBLX stock has inched up by more than 5%, and the average RBLX price target of $45.17 implies a downside potential of 2.7% at current levels.
