IB Net Payout Yields Model

Roblox: Major Ads Catalyst

Update - May 9

Roblox is trading down some 30% pre-market on the mobile gaming platform lowering bookings for 2024. The stock will be down to only 4x bookings estimates making Roblox a true bargain at the open below $30. 

--The company also lowered its full-year bookings forecast, as it now sees the closely watched metric coming in between $4B and $4.1B fro 15% growth, down from a prior outlook of $4.14B to $4.28B.

Q1'24 Performance Metrics: 🔸 Daily Active Users (DAUs): 77.7M; UP +17% YoY 🔸 Hours Engaged: 16.7B; UP +15% YoY 🔸 Net Cash Provided by Operating Activities: $238.9M; UP +37% YoY 🔸 Free Cash Flow: $191.1M; UP +133% YoY 🔸 Average Bookings per DAU: $11.89; UP +2% YoY

Original article posted on Apr. 16

  • Roblox Corporation is partnering with PubMatic to launch immersive video ads on its platform, targeting major brands and driving revenue growth.
  • The U.S. video game-advertising business is expected to exceed $10 billion in 2025, presenting a significant revenue opportunity for Roblox.
  • Roblox stock trades at only 5.5x EV/S, any dip provides a great buying opportunity.
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Roblox Corporation (NYSE:RBLX) ended last year back in growth mode, yet the stock hasn't recovered beyond the post-Covid highs around $40 for years now. The mobile gaming platform has been a strong growth machine when normalized for the volatility over the last few years. My investment thesis remains ultra-Bullish on the stock, especially on a dip below the current support around $36.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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