Shares of Roblox Corp (NYSE: RBLX) rose nearly 5.0% on Wednesday after the video game developer posted positive guidance for 2024.
Are you looking for fast news, hot tips and market analysis? Subscribe to the Invezz newsletter today.
Here’s what RBLX expects for 2024
Copy link to section
The California-based company now expects 2024 orders to be $4.03 billion versus analysts’ estimate of $3.98 billion, and EBITDA will likely be around $490 million on an adjusted basis, according to Michael Guthrie, chief financial officer.
In today’s presentation, he also talked about how Roblox intends to integrate artificial intelligence and achieve further user growth.
Details of what the New York-listed company expects for 2024 will be outlined early next year. The preliminary guidance comes just days after Roblox Corp reported strong results for its fiscal third quarter.
RBLX has gained about 60% in less than two months.
What else is notable about today’s leadership?
Copy link to section
Roblox also said Wednesday that infrastructure-related capital expenditures will be capped at approximately $100 million in 2024. The gaming company expects stock dilution of 3.0-4.0%.
According to Roblox Corp, the company plans to increase annual orders by more than 20% between 2025 and 2027. The company aims to improve margins by 100 to 300 basis points per year over the next three to five years.
In September, RBLX allowed its premium subscribers to sell 3D assets to other users on its app, Invezz reported.
Wall Street currently has a consensus rating of “outperform” on Roblox Corp. shares.
TO
Easily copy experienced traders with eToro. Invest in stocks like Tesla and Apple. Instantly trade ETFs such as the FTSE 100 and S&P 500. Register in minutes.
10/10
77% of retail CFD accounts lose money.
/cloudfront-us-east-1.images.arcpublishing.com/morningstar/DWP2KUBV6BHUNKMQTELEH3U7NI.jpg)
