Latest news with #DavidBaszucki
Business Insider
2 days ago
- Entertainment
- Business Insider
Roblox has kids yearning for the farm with 'Grow a Garden.' I can see what it's addicting.
The hottest trend this spring for young people is … gardening. Growing carrots and strawberries, pruning weeds. I'm sorry to inform parents anxious about screentime: This doesn't mean your kids are digging in the dirt outside in the fresh air. They're probably on Roblox, playing "Grow a Garden," which, as I typed this Thursday, had more than 2.2 million people playing — four times as many as the next most popular game. (A Roblox spokesman told me the game had around 9 million concurrent players at one point over a weekend in late May — a Roblox record.) I tried the game myself, and I can see how — if you're willing to spend real money on seeds and other garden accoutrement — you can get ahead. Bloomberg reported there's already a robust secondary market for some of the things you can buy to help grow your garden. Items like seed and livestock have popped up on Discord, some niche sites, and even on eBay, to the tune of millions of dollars of turnover a week, the report said. (Selling items on third-party sites is against Roblox's rules, but it still happens.) How did 'Grow a Garden' sprout? "Grow a Garden's" origin story is much like many games on Roblox: A random user — in this case, reportedly a 16-year-old — created the game. The teen has remained anonymous, and I couldn't reach him. Roblox's user base is 40% under the age of 13, CEO David Baszucki has said recently. Users can create their own games — and by using " Robux," the platform's own virtual currency that players can buy with real money, players and game-builders can make money. (It's roughly one real cent per Robux, though they can be had cheaper with package deals and other promotions.) According to an interview in a gaming newsletter with well-regarded Roblox developer Janzen "Jandel" Madsen, "Grow a Garden" was initially created by the teen who built it in a few days. Then Madsen acquired part of the game to build it out with a team of developers. It got even bigger when Do Big Studios, a Florida-based company, also partnered in the game. The exact workout of who owns what isn't clear. Madsen and Do Big Studios didn't respond to my requests for comment. I played 'Grow a Garden' In "Grow a Garden," which is free to play, you start by planting some simple seeds (carrot, strawberry), which quickly grow into plants that you can sell. With that money, which comes in the form of the game's virtual currency, the Sheckle, you earn more to buy even more seeds, eggs, animals, and so on. Curious, I tried it. You start with just enough Sheckles to buy a few carrot seeds, which you can plant in your garden. Compared to my real-world failures in vegetable gardening, the carrots grew satisfyingly quickly, which I then harvested and took to sell at a farm stand, using my Sheckles to buy more seeds for strawberries and more carrots. I strolled around the world beyond my own garden to look at the gardens of other players, who were milling about, buying seeds and selling crops. Some players had really elaborate setups, which must've taken days or weeks of play to build up. After not too long, I had about 400 Sheckles. The leaderboard showed I was playing with someone who had 968 million Sheckles. I walked over to see her garden, which was full of lush plants and blocky animals walking around. Her profile showed she had created the account in early May — quite a feat (or a lot of real-world money). It's possible to "steal" another player's crops — but for that and other things, you have to use real Robux. In general, the gameplay is similar to other games — over time, you do a thing to trade in points for more things, which takes time and patience. And if you're willing to spend real money, you can get ahead much faster (this is not unlike the real world). So what makes 'Grow a Garden' so compelling? Justin Watkins, who runs the popular Roblox gaming YouTube channel ThinkNoodles, told me the game's creators obviously knew what they were doing. "The developers have really optimized everything about the game to maximize its spread in the Roblox algorithm, and also have a deep understanding of what players value in Roblox," he said. "There's been many games that use different hooks for players, but this game has incorporated almost all of them into a single game," including live events that he said are considered "must-attend" to get "rich" in the virtual world of "Grow a Garden" and "flex on others with cool mutations" in your virtual patch. How did 'Grow a Garden' get so big? "Grow A Garden" is undeniably popular. Roblox spokesman Eric Porterfield said it was one of the games that most quickly racked up 1 billion visits in Roblox's history. Still, some adults in video game forums on Reddit, X, and YouTube have criticized the game as being for "dopamine-addled children," saying it doesn't take a lot of brain power to play. (To be fair, there were plenty of adults who also said they found the game soothing and fun.) Others said that Do Big Studios' involvement led to a bigger focus on monetizing the game — in-app purchases to get ahead and the like — which they said had put a damper on the game's community. (Again, I couldn't get Do Big to respond to my questions, so I don't know what they have to say about this criticism.) "Grow A Garden" is still new, having launched in March 2025 — and the kind of momentum and popularity it has doesn't suggest it will fizzle out anytime soon. After playing a few minutes a day for a few days — without spending any of my own money on Robux or Sheckles — I had grown my garden to more than 180,000 Sheckles with tulips, watermelons, tomatoes, and a rare bamboo plant.
Yahoo
23-05-2025
- Business
- Yahoo
Q1 Earnings Roundup: Roblox (NYSE:RBLX) And The Rest Of The Video Gaming Segment
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the video gaming industry, including Roblox (NYSE:RBLX) and its peers. Since videogames were invented in the 1970s, they have gradually taken more share of entertainment time. Ubiquitous mobile devices have powered a surge in 'snackable' games that can be played on the go. Over time, games have developed more social engagement features where friends can play games together over the internet. The business models of games publishers have become less volatile due to digitization of distribution, in game monetization, and like Hollywood, an increasing dependence on surefire hit franchises. Covid driven lockdowns accelerated adoption and usage of videogames – a trend that has not slowed. The 4 video gaming stocks we track reported a mixed Q1. As a group, revenues beat analysts' consensus estimates by 4.9% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 8.8% on average since the latest earnings results. Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system. Roblox reported revenues of $1.04 billion, up 29.2% year on year. This print exceeded analysts' expectations by 3.3%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts' expectations. 'In Q1 2025, all of our results were above the guidance we provided on our Q4 2024 earnings call as we continue to deliver on several key growth initiatives. In addition to our focus on raw performance and quality, investments in the virtual economy and search and discovery are driving growth in platform monetization, bookings, and creator earnings. During the quarter, Roblox creators earned a record $281.6 million and over the past 12 months, more than 100 Roblox developers earned over $1 million. As a whole, the community is on pace to exceed $1 billion of earnings for the full year,' said David Baszucki, founder and CEO of Roblox. Roblox achieved the fastest revenue growth of the whole group. The company reported 97.8 million daily active users, up 25.9% year on year. The stock is up 21.6% since reporting and currently trades at $81.50. Is now the time to buy Roblox? Access our full analysis of the earnings results here, it's free. Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes. Skillz reported revenues of $22.41 million, down 11.2% year on year, outperforming analysts' expectations by 8%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' number of paying monthly active users estimates. Skillz pulled off the biggest analyst estimates beat among its peers. The company reported 124,000 monthly active users, up 2.5% year on year. The market seems happy with the results as the stock is up 21.7% since reporting. It currently trades at $6.43. Is now the time to buy Skillz? Access our full analysis of the earnings results here, it's free. Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world's largest video game publishers. Take-Two reported revenues of $1.58 billion, up 13.1% year on year, exceeding analysts' expectations by 0.9%. Still, it was a slower quarter as it posted full-year EBITDA guidance missing analysts' expectations. Take-Two delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 2.9% since the results and currently trades at $225.83. Read our full analysis of Take-Two's results here. Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ:EA) is one of the world's largest video game publishers. Electronic Arts reported revenues of $1.90 billion, up 6.5% year on year. This print surpassed analysts' expectations by 7.6%. Aside from that, it was a satisfactory quarter as it also logged EPS guidance for next quarter exceeding analysts' expectations. Electronic Arts scored the highest full-year guidance raise among its peers. The stock is down 5.2% since reporting and currently trades at $146.50. Read our full, actionable report on Electronic Arts here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
05-05-2025
- Business
- Yahoo
RBLX Q1 Earnings Call: Revenue, User Growth, and AI-Driven Monetization Take Center Stage
Gaming metaverse operator Roblox (NYSE:RBLX) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 29.2% year on year to $1.04 billion. On the other hand, next quarter's revenue guidance of $1.03 billion was less impressive, coming in 0.8% below analysts' estimates. Its non-GAAP profit of $0.21 per share was significantly above analysts' consensus estimates. Is now the time to buy RBLX? Find out in our full research report (it's free). Revenue: $1.04 billion vs analyst estimates of $1 billion (29.2% year-on-year growth, 3.3% beat) Adjusted EPS: $0.21 vs analyst estimates of -$0.39 (significant beat) Adjusted EBITDA: $205.1 million vs analyst estimates of $158.2 million (19.8% margin, 29.6% beat) The company slightly lifted its revenue guidance for the full year to $4.33 billion at the midpoint from $4.3 billion EBITDA guidance for the full year is $235 million at the midpoint, below analyst estimates of $1.08 billion Operating Margin: -24.6%, up from -37.7% in the same quarter last year Free Cash Flow Margin: 41.2%, up from 12.2% in the previous quarter Daily Active Users: 97.8 million, up 20.1 million year on year Market Capitalization: $50.25 billion Roblox delivered revenue growth above Wall Street's expectations in Q1, which management attributed to expanded daily active user numbers and significant engagement growth across key regions and age groups. CEO David Baszucki noted the platform's progress with genre diversification, tools for creators, and advancements in AI-driven moderation and recommendation systems. These operational enhancements supported higher developer earnings and improved cost efficiencies. For the coming quarters, management pointed to ongoing investment in platform technology, regional pricing strategies, and new monetization avenues such as advertising and e-commerce. CFO Mike Guthrie indicated that while margin improvement has been substantial, the pace is expected to moderate, with additional gains coming from operational efficiencies and AI adoption. Management also highlighted the early-stage nature of several initiatives, particularly around differential pricing and advertising partnerships. Revenue and user growth in Q1 were driven by broader engagement and platform improvements, while management emphasized the impact of new monetization strategies and technology investments. Global DAU Expansion: Roblox saw strong daily active user (DAU) growth in markets such as APAC and India, with over-13 age demographics increasing engagement, signaling successful international and older user expansion. Creator Earnings Acceleration: Initiatives like differential and regional pricing, alongside price optimization tools, led to higher median earnings for participating creators and contributed to over $1 billion in projected annual creator payouts for the first time. AI-Powered Efficiency: Management highlighted operational cost improvements driven by AI, particularly in trust and safety systems, content moderation, and AI-powered development tools for creators, resulting in slower growth in personnel costs relative to revenue. Genre and Content Diversification: Strategic focus on expanding into genres such as RPGs, sports racing, and battle games contributed to a 69% year-over-year growth in these areas, broadening the appeal and monetization potential of the platform. Advertising and Brand Activations: New ad formats and brand partnerships, including a collaboration with Google and high-profile activations like Chipotle and NASCAR, were cited as early contributors to platform monetization, with further scale-up expected as these initiatives mature. Roblox's outlook is shaped by its focus on expanding monetization options, driving operational efficiency, and pursuing international growth, while balancing investments in technology and content diversity. Broader Monetization Tools: Expansion of advertising partnerships, regional pricing, and direct payment methods are expected to unlock new revenue streams and improve profitability as adoption widens. Operational Leverage from AI: Continued integration of AI across moderation, development, and platform infrastructure should yield further cost efficiencies and support margin stability. International and Demographic Growth: Management sees significant runway in growing the user base among over-13 demographics and in international markets, which could help offset potential macroeconomic headwinds or saturation in core regions. Matthew Cost (Morgan Stanley): Asked about sustaining genre growth and platform diversity; management pointed to ongoing investment in technology, economics, and creator incentives as key levers. Matthew Cost (Morgan Stanley): Inquired about the impact of differential pricing and direct payments on margins; CFO Mike Guthrie described these efforts as early-stage but showing signs of positive margin contribution. Jason Bazinet (Citigroup): Questioned Roblox's resilience in a macroeconomic downturn; CEO David Baszucki stated that the platform's low-cost entertainment model and past performance suggest some defensiveness, but innovation is not the sole factor determining resilience. Clark Lampen (BTIG): Sought insight into passive monetization opportunities, especially through ads; management said advertising is growing but not yet a major contributor, and highlighted upcoming ad products and partnerships. Shweta Khajuria (Wolfe Research): Asked about the rate of margin improvement and AI tools' benefits; CFO Mike Guthrie noted margins have improved rapidly but will moderate, while AI is expected to boost both efficiency and creative output. Looking ahead, the StockStory team will be monitoring (1) the progress of advertising and e-commerce integrations and their impact on revenue, (2) the effectiveness of regional pricing and differential payment initiatives in boosting creator and platform earnings, and (3) sustained international and over-13 user growth. We will also watch for updates on AI-driven tools, both for operational efficiency and creator productivity. Roblox currently trades at a forward EV/EBITDA ratio of 42.4×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today.
Reuters
01-05-2025
- Business
- Reuters
Roblox lifts bookings forecast as spending defies tariff uncertainty
May 1 (Reuters) - Roblox (RBLX.N), opens new tab raised its annual bookings forecast on Thursday and beat quarterly results estimates, a sign that spending on its vast library of user-generated videogames was holding up despite economic uncertainty driven by U.S. tariffs. Shares of the company rose around 5.3% in premarket trading. The platform has aggressively tried to lure deep-pocketed older players with new game genres including horror to boost in-game spending on virtual items. Analysts say its free-to-play model could also help offset a broader pullback in consumer spending. Roblox now expects bookings, a measure of in-game spending, to be between $5.29 billion and $5.36 billion for the full year, compared with its prior forecast of $5.20 billion to $5.30 billion. In the first quarter ended March 31, its bookings rose 31% to $1.21 billion, beating analysts' estimates of $1.14 billion, according to data compiled by LSEG. Loss per share of 32 cents was also smaller than expectations for a loss of 40 cents per share. "It's very clear that the search and discovery algorithms are uncovering more and more content and doing a better job of matching that content to the users... as a result, we're finding more users that are engaging on the platform," outgoing CFO Michael Guthrie told Reuters. Average daily active users, a key measure of engagement, rose 26% to an all-time high of 97.8 million in the quarter, while hours engaged jumped 30%, the most since the first quarter of 2021. The strong engagement and its vast Gen Z user base have allowed Roblox to break into the advertising market, adding a fresh revenue stream as it battles rivals such as Fortnite. As part of its platform push, the company rewards developers of hit games to attract more creators and keep its content-engine running. The Roblox developer community "is on pace to exceed $1 billion of earnings for the full year", CEO David Baszucki said.
Yahoo
29-04-2025
- Business
- Yahoo
Video Gaming Stocks Q4 Highlights: Roblox (NYSE:RBLX)
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let's have a look at Roblox (NYSE:RBLX) and its peers. Since videogames were invented in the 1970s, they have gradually taken more share of entertainment time. Ubiquitous mobile devices have powered a surge in 'snackable' games that can be played on the go. Over time, games have developed more social engagement features where friends can play games together over the internet. The business models of games publishers have become less volatile due to digitization of distribution, in game monetization, and like Hollywood, an increasing dependence on surefire hit franchises. Covid driven lockdowns accelerated adoption and usage of videogames – a trend that has not slowed. The 4 video gaming stocks we track reported a softer Q4. As a group, revenues missed analysts' consensus estimates by 5.9% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 8.1% on average since the latest earnings results. Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system. Roblox reported revenues of $988.2 million, up 31.8% year on year. This print exceeded analysts' expectations by 1.9%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts' expectations. 'Roblox had a strong 2024, driven by our commitment to innovation and community. We're building a platform that goes beyond technology—it's about fostering genuine connections. As we aim to support 10% of the global gaming content market, we'll continue investing in our virtual economy, app performance, and AI-powered discovery and safety, empowering creators and enhancing the user experience,' said David Baszucki, founder and CEO of Roblox. Roblox achieved the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update of the whole group. The company reported 85.3 million daily active users, up 19.3% year on year. Still, the market seems discontent with the results. The stock is down 21% since reporting and currently trades at $66.85. Is now the time to buy Roblox? Access our full analysis of the earnings results here, it's free. Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ:EA) is one of the world's largest video game publishers. Electronic Arts reported revenues of $1.88 billion, down 3.2% year on year, falling short of analysts' expectations by 4.6%. The business performed better than its peers, but it was unfortunately a mixed quarter with EPS guidance for next quarter exceeding analysts' expectations but a significant miss of analysts' EBITDA estimates. Electronic Arts scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 21% since reporting. It currently trades at $146.74. Is now the time to buy Electronic Arts? Access our full analysis of the earnings results here, it's free. Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes. Skillz reported revenues of $20.37 million, down 34.5% year on year, falling short of analysts' expectations by 18.7%. It was a disappointing quarter as it posted a decline in its users. Skillz delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 110,000 monthly active users, down 19.7% year on year. The stock is flat since the results and currently trades at $5.06. Read our full analysis of Skillz's results here. Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world's largest video game publishers. Take-Two reported revenues of $1.36 billion, flat year on year. This number lagged analysts' expectations by 2.1%. It was a slower quarter as it also recorded full-year EBITDA guidance missing analysts' expectations. The stock is up 23.6% since reporting and currently trades at $226.22. Read our full, actionable report on Take-Two here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
