Roblox Corp. (RBLX) stock prices were down by 5.23% as of the market closing on August 16th, 2021. This brought the price per share down to USD$79.57 at the end of the trading day. Subsequent premarket fluctuations saw the stock fall by 6.61%, bringing it down to USD$74.31.
RBLX Stock’s Strong Financials
The second quarter of fiscal 2021 saw RBLX stock report revenue in the amount of USD$454.1 million. This represents a 127% increase from revenues reported for the prior-year quarter. Net loss for Q2 2021 was reported at USD$140.1 million, despite bookings increasing by 35% since Q2 2020 to USD$665.5 million. Net cash provided by operating activities was up by 64% over the second quarter of 2020, coming in at USD$191.2 million. Free Cash Flow was up to USD$168 million, representing a 70% increase from numbers reported for Q2 2020.
RBLX Stock’s Growing Usage
Average Daily Active Users were reported at 43.2 million for the second quarter of fiscal 2021. The 29% year-over-year increase was largely driven by a 42% growth in DAUs outside of the US/Canada markets, as compared to Q2 2020. A 46% growth in DAUs over the age of 13, as compared to Q2 2020 reports, also facilitated the year-over-year increase. Q2 2021 saw RBLX stock report 9.7 billion hours engaged, representing a 13% year over year increase.
Strength of July 2021
DAUs for July 2021 alone were up to 46.6 million, representing a 28% year-over-year increase and an 8% increase on the 43.4 million reported in June 2021. The month reported 3.8 billion hours engaged, representing a 22% increase from Q2 2020 and a 16% increase on the 3.3 billion reported in June 2021. Bookings for the month ranged from USD$221 million to USD$224 million, representing a 19% to 21% year-over-year increase.
Basis of RBLX Stock’s Growth
The company’s continued growth indicated the competent execution of its business strategy, as well as the strength of its platform. The strong quarter was driven by its creator ecosystem, as well as by millions of its consumers around the globe. The quarter ended June 30th, 2021 saw RBLX stock report record levels of cash from operations and free cash flow.
Future Outlook for RBLX
RBLX stock reported a strong second quarter of fiscal 2021, with the company taking steps to ensure a continuation of their trajectory of success. Investors are hopeful that management will be able to usher in organic growth over the long term, resulting in consistent gains in shareholder value.
