RBLX - Roblox May Be One Of The Best Growth Stories On Wall Street

2024-02-08 11:18:52 ET

Summary

• Roblox Corporation stock surged 10% after beating Q4 expectations and providing strong guidance for FY 2024.
• In Q4, Roblox revenues reached $750 million, while bookings jumped to $1.13 billion, both metrics notably ahead of analyst consensus.
• Roblox showed strong growth in the final quarter of 2023, driven by both DAU and ARPU expansion, underscoring the ability to simultaneously grow user base and monetization.
• For 2024, Roblox expects to generate revenue in the range of $3.3 - $3.4 billion, which would suggest 18-21% top-line growth YoY.
• The strong Q4 results reaffirm my belief that Roblox Corporation stock is one of the most exciting growth assets on Wall Street; and I reiterate my "Buy" rating with a $71.57/ share target price.

Roblox Corporation (RBLX) stock surged 10% following the company's publication of Q4 2023 results and FY 2024 guidance . For the fourth quarter of 2023, Roblox announced revenues of $750 million and bookings of $1.13 billion in Q4, both figures exceeding what analysts had anticipated. This significant growth stems from increases in Daily Active Users ((DAU)) and Average Revenue Per User ((ARPU)), showcasing the company's effectiveness in broadening its user base and boosting monetization strategies. For 2024, Roblox has set its revenue forecast in the $3.3 to $3.4 billion range, projecting an 18-21% YoY growth compared to FY 2023. As a consequence of strong commercial momentum and growth upside; I maintain a "Buy" rating....

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