Roblox (NYSE:RBLX) has announced its second-quarter 2023 earnings, reporting a loss of 46 cents per share, which aligns with the Consensus Estimate. In comparison, the company incurred a loss of 30 cents per share during the same period last year.

The company’s net revenues demonstrated a year-over-year increase of 15.14%, reaching $680.76 million. However, this fell short of the Consensus Estimate for revenues, which had been projected at $785 million.

 

Net bookings also exhibited growth, with a 23% increase year over year to $780.6 million from $639.9 million recorded in the corresponding quarter of the previous year. Despite this positive trend, the figure missed the Consensus Estimate by 0.4%.

Detailed User Base Information

Average Daily Active Users numbered 65.5 million, marking a 25% year-over-year growth. Nonetheless, this figure fell short of the Consensus Estimate by 1.56%.

Hours Engaged totaled 14 billion, reflecting a 24% year-over-year increase. However, this figure also missed expectations, lagging behind the Consensus Estimate by 4.47%.

Operational Insights

In the second quarter, developer exchange fees observed a 16% year-over-year rise, amounting to $165.8 million. Infrastructure expenses, coupled with trust and safety expenses, witnessed a surge of 24% year over year, reaching $132.5 million.

Research and development expenses, as well as general and administrative expenses, experienced growth of 48.9% and 22.3% year over year, amounting to $315.3 million and $96.1 million, respectively. Sales and marketing expenses also increased by 14.4% year over year, totaling $30.3 million.

Adjusted EBITDA for the period stood at $37.8 million, indicating a decrease of 30.6% in comparison to the corresponding period in the previous year.

Financial Snapshot

As of June 30, 2023, Roblox held cash and cash equivalents amounting to $520.3 million, in contrast to the $828.1 million recorded on March 31, 2023.

In terms of cash flow from operating activities, the second quarter of 2023 reported a negative cash flow of $28.4 million, diverging from the positive cash flow of $26.5 million in the same quarter of the previous year. Notably, the previous quarter had seen a negative cash flow of $269.9 million.

These results provide insights into Roblox’s performance during the second quarter of 2023, highlighting aspects such as revenue, user base dynamics, operational expenses, and cash flow.

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