Roblox Q4 Earnings Preview: Can Gaming Company Beat Analyst Estimates With Shares At Three-Year Highs?

Gaming company Roblox Corporation RBLX could highlight user growth and better monetization efforts when the company reports fourth-quarter financial results before market open Thursday.

Earnings Estimates: Analysts expect Roblox to report fourth-quarter revenue of $1.35 billion, up from $1.13 billion in last year's fourth quarter according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in two straight quarters and seven of the past 10 quarters overall.

Analysts expect Roblox to report a loss of 45 cents per share in the fourth quarter, an improvement from a loss of 52 cents per share in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in five straight quarters and six of the past 10 quarters overall.

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Key Items to Watch: The company saw strong growth in bookings, users and average booking per user in the third quarter. Those items will be closely watched by investors and analysts again.

Roblox ended the third quarter with a user base of 89 million as it puts an emphasis on keeping users engaged on the platform and also working on new initiatives to get older users to remain.

Analysts and investors will be closely watching to see if Roblox shares 2025 guidance for key metrics including bookings, revenue and earnings per share.

With quarterly losses, analysts and investors may look for any commentary on how close the gaming company is to profitability for its long-term sustainability.

Here are recent analyst ratings on Roblox and their price targets:

• Citigroup: Maintained Buy rating, raised price target from $63 to $82
• Piper Sandler: Reiterated Overweight rating, raised price target from $65 to $72
• Roth MKM: Maintained Neutral rating, raised price target from $54 to $70
• Wells Fargo: Maintained Overweight rating, raised price target from $58 to $76

RBLX Price Action: Heading into the quarterly results, Roblox stock has momentum with shares hitting new 52-week highs of $75.74 on Wednesday. This marked the highest share price for Roblox since January 2022. The stock has traded between $29.55 and $75.74 over the past 52 weeks and shares are up 92% over the past year.

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