Roblox Earnings: Strong Metrics Drive Bookings Growth; Operating Leverage Improvement on the Horizon

Roblox posted a mixed first quarter with strong revenue growth but expanding operating losses. Underlying metrics remained strong with improvement across the board—global daily active users, or DAUs, reached 61.1 million, up from 58.8 million last quarter and 54.1 million a year ago. Roblox’s reach with older gamers continues to expand, as 55.8% of users were over the age of 13 versus 52.3% a year ago. The firm also rebounded to positive free cash flow in the quarter after three straight quarters of losses. We maintain our $65 fair value estimate.