In the shareholder letter, the company stated:īookings growth in Q3 and Q4 of this year should be much closer to user growth rates than they were in January, and our exit growth rates this year are expected to be good indicators of 2023 growth. The problem with strong revenue growth and slow bookings growth is that by definition, revenues come from bookings, so these trends strongly suggest that revenue growth is about to slow down considerably. If a user purchases an item which lasts for 23 months, then that purchase price is divided evenly for each month for revenue recognition. The difference between bookings and revenue is that bookings reflects cash received by users and revenue reflects the portion which is attributable in any given quarter. Daily active users (‘DAUs’) grew modestly at 33% year over year and just 4.7% sequentially.īookings grew at only 20% to $770.1 million. The issue is that looking forward, growth is likely to slow. I suspect that RBLX’s cash flow generation in part helped the stock reach the insane multiples that it did. Prior to the crash in tech stocks, positive free cash flow was a typically effective catalyst for premium valuations.
RBLX coupled that strong top-line growth with solid adjusted EBITDA margin. RBLX closed out 2021 with 83% year over year revenue growth. Is the stock finally a buy here? RBLX Stock Key Metrics I last covered the stock in September when I called the stock grossly overvalued and explained the outlandish assumptions required to justify the stock price. The stock peaked at above $140 per share and recently closed around $35 per share. RBLX went public in early 2021 via direct listing and closed its first day of trading at $69.50 per share. In analyzing the valuation, I explain why in spite of the sizable drop in the stock price, I am still not a buyer here. While some of that decline could be explained from the general volatility seen in the tech sector, the decline could also be explained by certain key metrics. That hype has faded and so has the stock price, as the stock is now down significantly from all time highs. Roblox ( NYSE: RBLX) was once a heavily hyped stock on the basis of its exposure to the metaverse. Steve Jennings/Getty Images Entertainment
0 kommentar(er)
