Roblox Issues Subpar Outlook, Stock Tanks To Yearly Low
Portfolio Pulse from Anusuya Lahiri
Roblox Corp (NYSE:RBLX) stock plummeted after issuing a weaker-than-expected outlook for Q2 and fiscal year 2024, despite beating Q1 bookings and adjusted EPS estimates. The company reported a 19% year-on-year increase in bookings to $923.80 million and an adjusted EPS loss of $(0.43), surpassing analyst expectations. However, its Q2 bookings forecast of $870 million to $900 million and fiscal 2024 bookings forecast of $4.00 billion to $4.10 billion fell short of analyst consensus. Roblox also announced partnerships with Integral Ad Science Holding Corp (NASDAQ:IAS) and PubMatic, Inc (NASDAQ:PUBM) to expand video ad access and sales.
May 09, 2024 | 12:55 pm
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POSITIVE IMPACT
Integral Ad Science's partnership with Roblox to expand access to immersive video ads could potentially boost its visibility and revenue.
The partnership with Roblox to expand immersive video ad access is likely to increase Integral Ad Science's exposure and could lead to revenue growth as it taps into Roblox's extensive user base.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
PubMatic's collaboration with Roblox to drive video ad sales could enhance its market position and revenue prospects.
PubMatic's initiative to drive sales of video ads on Roblox's platform is expected to positively impact its market position and revenue, leveraging Roblox's significant user engagement.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Roblox's stock plunged following a disappointing outlook for Q2 and fiscal 2024, despite beating Q1 expectations.
The negative outlook provided by Roblox, especially its lower-than-expected bookings forecast, is likely to dampen investor sentiment in the short term, despite the Q1 performance exceeding analyst estimates.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100