Roblox share jump 13% as company outpaces expectations
2min read 
Roblox Corporation, a global platform for play, learning, and work, reported strong financial results for the fourth quarter of 2023. The company's revenue for the quarter was $749.9 million, representing a 30% year-over-year growth. Bookings for the quarter were $1.13 billion, up 25% year-over-year.
Roblox's net loss for the quarter was $323.7 million, which was higher than the estimated net loss of $353.15 million. The company's net cash provided by operating activities was $143.3 million, up 20% year-over-year. The company's average daily active users (DAUs) were 71.5 million, up 22% year-over-year, and the average monthly unique payers were 15.9 million, up 18% year-over-year. The average bookings per monthly unique payer was $23.65, up 6% year-over-year.
The company's hours engaged were 15.5 billion, up 21% year-over-year, and the average bookings per DAU was $15.75, up 3% year-over-year. Roblox's net liquidity was $2.2 billion, and the covenant-adjusted EBITDA was $259.6 million, up 42% year-over-year.
Roblox's full-year 2024 guidance indicates that the company expects to compound its top line by 20%+ annually through 2027. The company's revenue for FY2024 is expected to be between $3.3 billion and $3.4 billion, while bookings are forecasted to be between $4.14 billion and $4.28 billion. The consolidated net loss for the year is expected to be between $(1.4) billion and $(1.365) billion.
The company's adjusted EBITDA for FY2024 is expected to be between $(150) million and $(115) million, which includes an increase in deferred revenue between $852 million and $892 million and an increase in deferred cost of revenue between $(172) million and $(177) million.
For the first quarter of 2024, Roblox expects revenue to be between $755 million and $780 million, and bookings to be between $910 million and $940 million. The consolidated net loss for the quarter is expected to be between $(347) million and $(342) million, and the adjusted EBITDA is expected to be between $(55) million and $(50) million. This includes an increase in deferred revenue between $158 million and $163 million and an increase in deferred cost of revenue between $(33) million and $(35) million.
The stock has demonstrated a notable breakout, surpassing both the 20-day and 50-day moving averages, indicating a potential shift to a bullish trend. The move was accompanied by a substantial increase in volume, reinforcing the strength of the recent price surge. Investors should be mindful of the potential resistance around the December high of $47.20, which could pose a challenge to the continuation of the current upward trend.
In conclusion, Roblox's Q4 results were strong, and the company's outlook for FY2024 is optimistic. The company's focus on growing its user base, engaging users for longer periods, and increasing the number of monthly unique payers bodes well for its future growth. Investors should keep an eye on the company's ability to manage its expenses and increase its adjusted EBITDA in the coming quarters.