Roblox Q4 Earnings: Topline And User Growth Miss Estimates, FY25 Outlook Lags, Stock Slides

Zinger Key Points

Roblox's Q4 bookings grew 21% to $1.36B but missed estimates, while DAUs rose 19% to 85.3M and engagement hours hit 18.7B.
Despite a smaller-than-expected bookings beat, Roblox’s 2025 outlook remains strong, with full-year bookings forecasted at up to $5.3B.

On Thursday, Roblox Corp RBLX stock tumbled after it reported fiscal fourth-quarter 2024 bookings growth of 21% year-on-year to $1.36 billion, missing the analyst consensus estimate of $1.37 billion.

The video game developer reported an adjusted EPS loss of 33 cents, beating the analyst consensus loss estimate of 0.44 cents.

The revenue of the American video game developer grew by 32% Y/Y to $988.2 million.

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The Average Daily Active Users (DAUs) were 85.3 million, up 19% year over year, but missed the estimate of 88.39 million. The Hours Engaged were 18.7 billion, up 21% year over year.

The average monthly unique payers were 18.9 million, up 19% year over year. The Average Bookings per DAU was $15.97, up 1% year over year.

Roblox generated $184.5 million in operating cash flow as of December 31, 2024, versus $143.3 million Y/Y. Free cash flow for the quarter was $120.6 million.

Net loss for the quarter narrowed to $219.6 million, down from a loss of $323.7 million in the same period last year.

Outlook: Roblox expects first-quarter bookings of $1.125 billion—$1.150 billion (versus the consensus of $1.14 billion) and fiscal 2025 bookings of $5.20 billion—$5.30 billion versus the consensus of $5.10 billion.

Roblox stock surged over 54% in the last 12 months. At least six Wall Street firms (including JP Morgan, Morgan Stanley, Wells Fargo, Roth MKM, Piper Sandler, and Citigroup) raised their price targets on the stock in 2025.

Last October, JPMorgan analysts expressed optimism over mobile gaming trends and spending on consoles for 2025, backed by a strong game slate. They flagged Roblox as a top industry pick due to its combination of healthy engagement trends, ramping ads/commerce business, and free cash flow.

Price Action: RBLX stock is down 14% at $64.94 at the last check on Thursday.

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