Roblox (NYSE:RBLX) Posts Earnings Results, Beats Estimates By $0.10 EPS

Roblox (NYSE:RBLX) posted its earnings results on Thursday. The company reported ($0.43) EPS for the quarter, topping the consensus estimate of ($0.53) by $0.10, Briefing.com reports. The company had revenue of $923.76 million during the quarter, compared to the consensus estimate of $918.85 million. Roblox had a negative net margin of 41.15% and a negative return on equity of 770.71%. The company’s revenue for the quarter was up 19.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.44) earnings per share. Roblox updated its FY 2024 guidance to EPS and its Q2 2024 guidance to EPS.

Roblox Stock Performance

Shares of RBLX stock traded up $0.86 during trading hours on Friday, hitting $31.28. 15,942,641 shares of the company were exchanged, compared to its average volume of 8,182,505. Roblox has a 52-week low of $24.88 and a 52-week high of $47.20. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 14.64. The firm has a fifty day simple moving average of $37.81 and a 200 day simple moving average of $39.39. The stock has a market capitalization of $19.76 billion, a price-to-earnings ratio of -16.82 and a beta of 1.63.

Analyst Ratings Changes

RBLX has been the subject of a number of recent analyst reports. The Goldman Sachs Group upgraded Roblox from a “sell” rating to a “neutral” rating and upped their price objective for the company from $35.00 to $48.00 in a research note on Thursday, February 8th. Stifel Nicolaus reissued a “buy” rating and issued a $53.00 price target on shares of Roblox in a research report on Monday, April 22nd. Moffett Nathanson upgraded Roblox from a “sell” rating to a “neutral” rating and dropped their target price for the stock from $31.00 to $26.00 in a research report on Friday. Roth Mkm restated a “buy” rating and issued a $55.00 price objective on shares of Roblox in a research report on Wednesday, May 1st. Finally, Benchmark cut their price objective on shares of Roblox from $50.00 to $40.00 and set a “buy” rating for the company in a research note on Friday. Five equities research analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $43.76.

Insider Activity

In related news, CEO David Baszucki sold 200,000 shares of the stock in a transaction on Monday, February 12th. The stock was sold at an average price of $44.09, for a total value of $8,818,000.00. Following the sale, the chief executive officer now owns 1 shares in the company, valued at $44.09. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, Director Gregory Baszucki sold 13,000 shares of the firm’s stock in a transaction on Wednesday, April 24th. The stock was sold at an average price of $35.08, for a total transaction of $456,040.00. Following the transaction, the director now owns 9,747,603 shares in the company, valued at $341,945,913.24. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO David Baszucki sold 200,000 shares of Roblox stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $44.09, for a total transaction of $8,818,000.00. Following the transaction, the chief executive officer now directly owns 1 shares in the company, valued at $44.09. The disclosure for this sale can be found here. Insiders have sold 512,374 shares of company stock valued at $20,809,338 in the last 90 days. Insiders own 22.15% of the company’s stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.