RBLX - Roblox: Breaking Records

2024-02-08 14:54:53 ET

Summary

• Roblox Corporation reported a blowout quarter with record metrics, including quarterly bookings topping $1 billion for the first time.
• Key usage metrics such as DAUs and Hours Engaged grew by over 20%, indicating strong growth potential.
• The company's reported GAAP losses are a concern, but non-GAAP measures like adjusted EBITDA show a large profit and indicate the economics of the business.
• Roblox stock trades at ~7x '24 bookings targets providing for solid returns ahead, especially if one can buy Roblox on a dip.

In no surprise here, Roblox Corporation ( RBLX ) reported a blowout fourth quarter to end 2023. The mobile gaming company had guided to strong bookings growth in the years ahead, and the market appeared to ignore those projections. My investment thesis remains Bullish on the stock, though the failed push above resistance around $46 could lead to a lower stock price in the near term....

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