Roblox Earnings: Platform Improvements Drive Broad User Momentum and Appeal

Narrow-moat Roblox delivered consistent results, as bookings grew 22% year over year, exceeding the high point of management’s guidance. Management said that changes made to the Roblox platform in the first quarter were positively received by users, driving a reacceleration in player engagement and the growth of daily active users. While we don’t believe Roblox will be able to increase the player base and usage at low-20% rates in the long term, usage metrics and profitability improvements this quarter have been a step in the right direction. We are increasing our fair value estimate to $53 from $50 given a slightly better outlook on growth in total bookings and the number of daily active users.