Roblox issues positive preliminary guidance for 2024

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Written on Nov 15, 2023

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Roblox Corp says it now expects $4.03 billion of bookings in 2024.
It'll target north of 20% growth in annual bookings between 2025 and 2027.
Roblox stock has gained roughly 60% in less than two months.

Shares of Roblox Corp (NYSE: RBLX) popped nearly 5.0% late on Wednesday after the video game developer issued positive guidance for 2024.

Here’s what RBLX expects for 2024

The California-based company now expects $4.03 billion of bookings in 2024 versus analysts at $3.98 billion – and EBITDA will likely print at about $490 million on an adjusted basis, as per Michael Guthrie – the Chief Financial Officer.

In a presentation today, he also talked about how Roblox intends to integrate artificial intelligence and pursue user growth moving forward.

Details of what the New York-listed firm expects for 2024 will be laid out early next year. The preliminary guidance arrives only days after Roblox Corp reported solid results for its third financial quarter.

RBLX has gained about 60% in less than two months.

What else was noteworthy in today’s guidance?

On Wednesday, Roblox also said that capital expenditures related to infrastructure will be capped at about $100 million in 2024. The gaming company expects 3.0% to 4.0% share dilution.

According to Roblox Corp, it will target north of 20% growth in annual bookings between 2025 and 2027. The company is aiming for between 100 basis points and 300 basis points a year of improvement in margins over the next three to five years.

In September, RBLX enabled its premium subscribers to sell 3D assets to others users on its app as Invezz reported here.

Wall Street currently has a consensus “overweight” rating on shares of Roblox Corp.