Seema Shah · May 2023
MMM: Roblox Q1 2023 Earnings Results and Trends
Roblox reported worse-than-expected 1Q23 losses due to higher expenses associated with developer exchange fees and personnel costs, but topline growth remained strong. Duolingo's 1Q23 earnings beat was driven by increases in bookings, paid subs, and MAUs, with the company noting strength in converting users into paid subs as user stickiness increases. Airbnb's 2Q23 guidance was tempered by tough comparisons, but pricing is up 30% higher than pre-COVID, and ST installs increased 27% YoY in 1Q23.
Key Takeaways:
Higher expenses associated with developer exchange fees and personnel costs drove worse-than-expected 1Q23 losses for Roblox, though topline growth remained strong and exceeded estimates. User growth and engagement trends were robust; reported DAU growth of 22% was inline with ST DAUs of 23%
Duolingo’s 1Q23 earnings beat was propelled by increases in bookings (+37% YoY vs ST IAP revenue +45%), paid subs (+63% YoY vs ST DAUs +53%), MAUs (+48% YoY vs ST MAUs +42%), with the company noting it saw strength in converting users into paid subs as user stickiness increases
ST Power User data - which directly measures stickiness and loyalty - shows a continued uptick in the percent of Duolingo users opening the app +15 days/month
Airbnb’s 2Q23 guidance was tempered by tough comparisons, even though pricing is up 30% higher than pre-COVID, and expects bookings growth to be lower than its 12-16% sales growth forecast; ST installs of Airbnb increased 27% YoY in 1Q23, inline with reported nights & experiences booked and revenue (both +19% YoY). Please see “Jetsetting Continues in 2023, Though Pace Slows“ for more details
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Written by: Seema Shah, VP, Insights
Date: May 2023