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Roblox February DAUs Up 28%, but Benchmark Sees Q1 Downside Risk

Published 15/03/2022, 15:20
© Reuters
RBLX
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By Sam Boughedda

Investing.com -- On Tuesday, Roblox Corp. (NYSE:RBLX) reported its metrics for February, revealing that daily active users were 55.1 million, rising 28% year-over-year.

The online game platform and game creation system company also reported an increase in hours engaged to 3.8 billion, up 21% year-over-year.

However, estimated bookings for February were between $203 million and $206 million, down 2% to 4% year-over-year, with estimated average bookings per daily active user between $3.68 and $3.74, down from 24% to 25% year-over-year.

Roblox sees revenue for the month between $204 million and $207 million, up 60% to 63% year-over-year.

Following the metrics update, Benchmark analyst Mike Hickey said the company's February bookings numbers were disappointing, and he sees downside risk in the current fiscal first quarter consensus view.

He added that Roblox's desire to drive growth through an older demographic and brand advertisements could "ultimately create a toxic community experience."

The analyst maintained a Sell rating and a $45 price target on the stock.

Roblox shares have, however, shrugged off concerns about the bookings decline, rising 2% at the open.

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