Roblox ($RBLX) DD

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via WSB:

First, no one cares about earnings miss in this market when it relates to tech stocks. If so, $NVDA, $AMZN, $GOOG and the like would soar to infinity beyond every earnings report but often go down after record breaking earnings. Why? Because of buying the rumor and selling the news and forward projections.

These companies are established and have to work hard to establish how they are going to continue growing at that pace, but for newer companies earnings miss are not only expected but a shakeout of weak paper hands. Remember $TSLA anyone?

So let’s talk about $RBLX, who just post earnings announcement.

Here is the TLDR;

Q2 was less growth than Q1 compared to last year 🤦- well duh!?!?

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Last Q2 was Apr 2020 – June 2020 which encompassed a rapid growth period for Roblox during the lockdowns.

Here’s the incredibly bullish thing though – there was growth 🚀🚀🚀. The bears against this suggest that it was just a pandemic play and that it faced strong headwinds because of that. Yet, despite the economy vast re-opening and $DIS exploding it’s park attendance with blowout earnings, $RBLX still experienced vast growth YoY in the headwind environment. I think this will only continue to curve upwards as pandemic surge data moves out of focus. For the short-term and my tendies, the earnings call tomorrow will make a big impact whether this will print or not. The Delta variant is growing lockdown concerns again too. Either way, more lockdowns or not, $RBLX is a strong play with lots of insider buying too. There has to be something that Nancy and Cathie know. $85+ let’s go 🚀🚀🚀!

The details are below for those wanting to see the comparison between Q2 report and Q1 report:

  • Revenue increased 127% over Q2 2020 to $454.1 million [Compared to last Q1: 147% growth from Q1 YoY]
  • Net Loss for Q2 2021 was $140.1 million [Compared to last Q1: Net Loss for Q1 2021 was $134.2 million]
  • Net cash provided by operating activities increased 64% over Q2 2020 to $191.2 million [Compared to last Q1: Nearly 300% YoY]
  • Bookings increased 35% over Q2 2020 to $665.5 million [Compared to last Q1: 161% over Q1 2020 to $652.3 million]
  • Free Cash Flow increased more than 70% over Q2 2020 to $168.0 million [Compared to last Q1: 310%]
  • Average Daily Active Users (DAUs) were 43.2 million, an increase of 29% year over year [Compared to last Q1: 79% growth over Q1 2020]
  • 42% growth in DAUs outside of the US/Canada compared to Q2 2020 [Compared to Q1: YoY 87% growth in DAUs outside of the US/Canada]
  • 46% growth in DAUs over the age of 13 compared to Q2 2020 [Compared to Q1: 111% YoY growth in DAUs over the age of 13]
  • Hours Engaged were 9.7 billion, an increase of 13% year over year primarily driven by [Compared to Q1: Hours Engaged were 9.7 billion, an increase of 98% year over year primarily driven by]:
    • 27% growth in engagement in markets outside of the US/Canada compared to Q2 2020 [Q1: 104% YoY growth in engagement in markets outside of the US/Canada]
    • 29% growth from users over the age of 13 compared to Q2 2020 [Q1: 128% YoY growth from users over the age of 13]
  • Average Bookings per DAU (ABPDAU) was $15.41, a slight increase year over year [Average Bookings per DAU (ABPDAU) was $15.48, an increase of 46% year over year]

Positions: 8/20 Long call $80 8/20 short put $80


Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.


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