03:39 PM EDT, 05/06/2024 (MT Newswires) -- Roblox ( RBLX ) will likely surpass its fiscal first-quarter bookings guidance when it reports results on May 9, Wedbush Securities said in a Monday note.

The brokerage expects the videogame platform's bookings growth to be in the low-20% range to around $940 million, which is above the consensus view of 19% growth to $923 million and the buyside whisper of $930 million, according to the report. Roblox's ( RBLX ) guidance for first-quarter bookings was in the $910 million to $940 million range.

Wedbush reiterated an outperform rating and a $56 price target on the stock. Shares of Roblox ( RBLX ) rose 1.9% in afternoon trade.

Bookings likely benefited from "solid organic momentum" that would have been buoyed by an aging up of players and strength in Roblox's ( RBLX ) Europe and rest of world geographic segments, analysts Nick McKay and Michael Pachter said.

Platform expansion, the evolution of the Roblox ( RBLX ) economy, and The Hunt, a community-wide event held in March, likely also contributed to organic growth, according to Wedbush.

Management will likely pass-through the modest upside to its full-year guidance, the analysts said. Wedbush is modeling for fiscal 2024 bookings of $4.28 billion, implying year-over-year growth of nearly 22%. That's above the consensus view of $4.19 billion. It expects Roblox ( RBLX ) to reiterate 20%-plus topline growth for the ongoing year.

"Investors remain skeptical about whether the company can sustain 20% topline growth, and are concerned about guidance below that level," McKay and Pachter wrote. "We are confident that management can more clearly articulate its financial vision while continuing to execute against it as well."

The company's recent decisions to open up the Marketplace and expand video ad availability "bode well for growth in 2024 and beyond," they said. For the second quarter, Wedbush is targeting bookings of $960 million, above the Street's $934 million.

Price: 40.05, Change: +0.81, Percent Change: +2.06