Roblox Q1 Earnings: Growth Metrics Still Good, I'm Still Bullish
Summary
- Roblox's latest earnings report saw the company miss bottom line estimates while marginally beating across the top line.
- Roblox's user growth and user engagement metrics remained robust and continued to grow in the double digits YoY.
- There has also been evidence of improving unit economics, as well as an increase in operating cash flow YoY.
- While much higher CapEx ended up resulting in a YoY decline for free cash flow, this data point confirms that Roblox has continued investing heavily in its own growth.
- Given the platform metrics, I think management's focus on growth continues to be the right strategy, and growth valuation projections indicate that Roblox is still a buy for the long term.
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