Roblox (NYSE:RBLX) is gearing up to reveal its third-quarter 2023 results on November 8.
The Consensus Estimate for revenue is set at $828.84 million, indicating an 18.12% growth compared to the previous year’s third quarter.
The consensus estimate for losses has remained steady at 52 cents over the past 30 days, representing a 4% decline year over year.
It’s worth noting that Roblox has had a mixed track record, surpassing the Consensus Estimate in two of the last four quarters while falling short twice, with an average negative surprise of 7.73%.
Now, let’s take a closer look at the factors to consider leading up to this earnings announcement.
Roblox’s Q3 performance is expected to benefit from continued growth in both users and developers, as well as an increase in daily user engagement on their platform.
The second quarter of 2023 saw robust growth in usage, with improvements in bookings and daily active users (DAUs) as customers spent more time enjoying Roblox games. This trend is anticipated to have continued, positively impacting the overall performance for Q3 2023.
User growth spans across various regions, including the United States and Canada, with DAUs of all ages increasing. Notably, older users aged between 17 and 24 years have shown substantial growth, rising by 38% in the third quarter of 2023 compared to the same period in the previous year. The Consensus Estimate for DAUs in the upcoming quarter is set at 70.05 million.
In the last reported quarter, the average DAUs were 65.5 million, a 25% year-over-year increase. Total hours of engagement reached 14 billion, up by 24% year over year. Bookings also saw a significant uptick, reaching $780.7 million, marking a 22% year-over-year increase. The Consensus Estimate for hours engaged and bookings currently stands at 15.12 billion and $829 million, respectively.
Roblox’s expanding user base among nine to twelve-year-olds holds significant promise, while their developer community’s focus on delivering high-quality content with enhanced visuals and effects, along with continued market penetration, is expected to drive the results for the third quarter.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 
