For the fourth quarter ending 12/31/22, Roblox Corporation (NYSE: RBLX) reported revenue of $579 million, up 2% over the previous year’s quarter. For the full fiscal year, revenue in 2022 was $2.2 billion, up 16% over 2021. Roblox reported a loss of $924 million for the year.
Bookings for the fourth quarter were $899 million, up 17% over the previous year. For the full year, bookings were up 5% at $2.9 billion.
Analysis
Roblox beat estimates and its stock has been up over 50% since the start of the year. Average daily active users (DAU) reached 58.8 million, up 19% over the previous year (in its December metric reporting DAU was 61.5 million and for January 2023 they reached 65 million). Average bookings per DAU have been flat but that is to be expected as Roblox expands globally.
Nevertheless, Roblox remains a speculative stock. The company is trading well below its IPO price but still has a market cap in the $25 billion range. Going forward the company has all kinds of challenges to tackle if it wants to live up to loft expectations.
Among the many challenges are building an over 13 audience, adding advertising, and at the same time remaining a safe environment for children. The current problem with Roblox is that its users tend to grow out of the platform.   If the company can appeal to an older audience there is a great deal of potential. However, DFC believes this could be a challenge.
