By Michael Elkins
Bank of America reiterated a Buy rating and $54.00 price target on Roblox Corp (NYSE:RBLX) ahead of the company’s 4Q earnings release. Roblox will report 4Q22 results on Wednesday Feb. 15th, before market open.
Analysts expect the online gaming platform’s EBITDA margin to exceed the 10% threshold management indicated in November as 4Q bookings were driven by December outperformance and likely exceeded the company’s expectations.
Bank of America does not expect Roblox to release guidance, but the analysts expect some indication of growth outlook for the year vs. rates exiting 2022. The stock has numerous catalysts in 2023, any of which management could clarify on the call.
The analysts wrote in a note, “We expect mgmt to call out improvement across all core markets (US/CAN, Europe, East Asia), an aging up player base and expansion in content and developer community as key drivers of growth. We expect avg. bookings per hour in North America to be at least flat Y/Y after two quarters when the metric contracted Y/Y. We also expect North America DAUs up HSD% Y/Y after Roblox showed it could continue to penetrate its most mature market last Q. We expect a strong January bookings number on strong follow through from December, several Game Fund launches towards end of Q4, and we note that Roblox, and two of its most popular experiences appeared to set records for concurrent users.”
Shares of RBLX are up 0.73% in mid-day trading on Monday.