Shares of Roblox Corporation (NYSE: RBLX) fell 17.4% in Tuesday’s extended trading session after the company posted weak second-quarter 2022 results. The investor confidence was also shaken by the softness in the company’s bookings during the reported quarter. Unfortunately, RBLX stock was down a further 14.1%, at the time of writing, in Wednesday’s pre-market trading session.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
A Snapshot of Roblox’s Q2 Earnings
- Net loss came in at 30 cents per share in the reported quarter, compared to the year-ago loss of 25 cents. Analysts had expected the company to post a loss of 25 cents per share.
- Revenues jumped 30% year-over-year to $591.2 million in the second quarter of 2022.
- The company’s bookings declined 4% from the prior-year quarter to $639.9 million. The metric also lagged analysts’ estimate of $644.4 million.
- Average Daily Active Users (DAUs) rose 21% to 52.2 million.
- Roblox’s average Bookings per DAU slipped 21% over the year-ago quarter to $12.25.
- Hours Engaged jumped 16% year-over-year to 11.3 billion.
Roblox’s July Numbers Give Hope for a Strong Q3
Roblox has shared impressive numbers for July. Bookings have risen around 8-10% over the prior year and are between $243 million and $247 million. DAUs came in at 58.5 million, jumping 26% over the prior year. Revenues for the month are estimated between $205 million and $208 million, up 25%-27% year-over-year. The company’s upbeat figures for July are increasing confidence regarding the company’s performance in the third quarter of 2022.
What Is Roblox’s Stock Prediction?
On TipRanks, RBLX’s average price forecast is $38.69, which implies that the stock has downside potential of over 18.3% from current levels. Analysts have a Moderate Buy consensus rating on the stock, which is based on eight Buys, seven Holds, and two Sells.
While analysts have mixed feeling about the stock, financial bloggers are 66% Bullish on RBLX.
Final Thoughts
Roblox has been disappointing investors with a slowdown in bookings since the first quarter of 2022. The company’s shares have already declined about 52.1% so far this year. Meanwhile, Roblox has partially impressed with upbeat booking figures for July that may provide support to its third quarter results.
Read full Disclosure.
