Roblox Q2 Earnings Preview: Strong Revenue Growth, Increased Engagement Levels, Global Expansion

American video game developer Roblox Corp. RBLX is set to report second-quarter 2023 results on Aug. 9 before the market opens.

Earning Estimates: According to Zacks Equity Research, the consensus estimate for Roblox's revenue is expected to be $785.01 million, indicating growth of 22.68% from the year-ago quarter’s levels.

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Meanwhile, Zacks' consensus estimate for the loss per share in second-quarter 2023 stands at 46 cents, reflecting a 53.33% decline compared to the earnings reported during the same quarter in the previous year.

Roblox has a mixed track record when it comes to beating earnings expectations.

In the last four quarters, the company managed to surpass the Zacks consensus estimate for earnings once but fell short of the target three times. On average, the difference between its actual earnings and the consensus estimate was 15.34% below expectations.

The company based in San Mateo, California, reported revenue of $591.2 million in the second quarter of 2022 and $655.3 million in the most recent first-quarter report.

Roblox's second-quarter performance is anticipated to benefit from user and developer growth, increased engagement levels and global expansion, as per Zacks Equity Research.

The company saw strong usage growth in the first quarter of 2023, and this trend is expected to continue. Users are growing across regions, with older age groups contributing significantly.

"The Zacks consensus estimate for DAUs [daily active users] in the to-be-reported quarter is pegged at 66.5 million," the investment research firm said.

Roblox also launched the Roblox Partner Program to boost brand innovation and advertising on the platform, partnering with various companies to enhance its offerings.

As per the Zacks model, the probability of Roblox beating earnings expectations appears to be low. The company's Earnings ESP stands at 0.00%, while its Zacks Rank is #4 (Sell).

Analyst Ratings and Price Targets: Ahead of Roblox's second-quarter earnings report, Wedbush analyst Nick McKay reiterated Roblox with a Neutral rating and maintained a $37 price target.

According to data from MarketBeat.com, the company has a consensus rating of Hold and a consensus price target of $40.48.

RBLX Price Action: Roblox shares are currently trading up 0.66% at $37.85. The 52-week low is $25.32, 52-week high is $53.88.

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