Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Roblox Corporation exhibited a robust performance in the fourth quarter and full year 2023, in line with the outlook projected at their Investor Day.</li><li>Q4 saw daily active users (DAUs) reaching 71.5 million, a 22% increase, and hours engaged increasing to 15.5 billion hours, a jump of 21% year-on-year.</li><li>Revenue for Q4 alone stood at $749 million, up 30% year-on-year, with bookings hitting $1.1 billion, a bump of 25% year on year.</li></ul>

Roblox Corporation exhibited a robust performance in the fourth quarter and full year 2023, in line with the outlook projected at their Investor Day.Q4 saw daily active users (DAUs) reaching 71.5 million, a 22% increase, and hours engaged increasing to 15.5 billion hours, a jump of 21% year-on-year.Revenue for Q4 alone stood at $749 million, up 30% year-on-year, with bookings hitting $1.1 billion, a bump of 25% year on year.

Roblox Corporation: Cutting-Edge AI Drives Cost Down! Inside Look at How They're Revolutionizing Game Infrastructure! - Major Drivers

<ul><li>Roblox Corporation delivered a positive result and managed an all-around beat in the last quarter, with GAAP revenue reaching $713 million, a remarkable 38% increase compared to Q3 2022.</li><li>Key metrics highlighted the company's operational prowess, including $839.5 million in bookings, a 20% YoY surge, and a solid cash flow from operations at $112 million, with $59 million in free cash flow.</li><li>Daily Active Users (DAUs) peaked at 70 million, marking a 20% YoY uptick, while total engagement hours surged to 16 billion in Q3, reflecting a similar 20% increase.</li></ul>

Roblox Corporation delivered a positive result and managed an all-around beat in the last quarter, with GAAP revenue reaching $713 million, a remarkable 38% increase compared to Q3 2022.Key metrics highlighted the company's operational prowess, including $839.5 million in bookings, a 20% YoY surge, and a solid cash flow from operations at $112 million, with $59 million in free cash flow.Daily Active Users (DAUs) peaked at 70 million, marking a 20% YoY uptick, while total engagement hours surged to 16 billion in Q3, reflecting a similar 20% increase.

Roblox Corporation: Expanding Global Footprint – How They Are Conquering New Markets! - Major Drivers

<ul><li>Roblox Corporation delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.</li><li>Bookings reached $780 million, a 22% increase year on year.</li><li>The initiative has been developed to transform brand innovation and establish a self-sustaining, worldwide advertising ecosystem within the Roblox platform.</li></ul>

Roblox Corporation delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.Bookings reached $780 million, a 22% increase year on year.The initiative has been developed to transform brand innovation and establish a self-sustaining, worldwide advertising ecosystem within the Roblox platform.

Roblox Corporation: New Roblox Partner Program & Other Major Developments

<ul><li>Roblox delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.</li><li>They achieved positive cash flow and generated substantial free cash during the quarter.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Roblox delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.They achieved positive cash flow and generated substantial free cash during the quarter.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>We estimate that NetEase's 1Q23 revenue/non-GAAP net income is 1.4%/9.4% vs cons; and 2023's is 7.5%/12.3% vs cons. We suggest that &lt;Eggy Party&gt; has a lot of similarities with &lt;Roblox&gt;.</li>
<li>Four things the market may underestimate about NetEase: 1) the life cycle of &lt;Eggy Party&gt;; 2) &lt;Eggy Party&gt;'s overseas launch; 3)&lt;Justice Mobile&gt;; and 4) AIGC.</li>
<li>We raise NetEase's TP from US$ 99 to US$ 106, and this remains to be one of our top BUY ideas in China internet.</li>
</ul>


We estimate that NetEase's 1Q23 revenue/non-GAAP net income is 1.4%/9.4% vs cons; and 2023's is 7.5%/12.3% vs cons. We suggest that &lt;Eggy Party&gt; has a lot of similarities with &lt;Roblox&gt;.
Four things the market may underestimate about NetEase: 1) the life cycle of &lt;Eggy Party&gt;; 2) &lt;Eggy Party&gt;'s overseas launch; 3)&lt;Justice Mobile&gt;; and 4) AIGC.
We raise NetEase's TP from US$ 99 to US$ 106, and this remains to be one of our top BUY ideas in China internet.


[NetEase (NTES US, BUY, US$106) TP Change]: Eggy Party Could Be Compared to Roblox

United States

Roblox Corporation provides entertainment products and services. The Company designs and develops a wide range of online games such as internet three-dimensional and tutorial games for kids, teens, and adults. Roblox serves customers worldwide.

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ROBLOX (RBLX US)

Roblox Corporation: Cutting-Edge AI Drives Cost Down! Inside Look at How They're Revolutionizing Game Infrastructure! - Major Drivers

Roblox Corporation exhibited a robust performance in the fourth quarter and full year 2023, in line with the outlook projected at their Investor...

Baptista Research

Roblox Corporation: Expanding Global Footprint – How They Are Conquering New Markets! - Major Drivers

Roblox Corporation delivered a positive result and managed an all-around beat in the last quarter, with GAAP revenue reaching $713 million, a...

Baptista Research

Roblox Corporation: New Roblox Partner Program & Other Major Developments

Roblox Corporation delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street. Bookings...

Baptista Research

Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers

Roblox delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in...

Baptista Research

[NetEase (NTES US, BUY, US$106) TP Change]: Eggy Party Could Be Compared to Roblox

Four things the market may underestimate about NetEase: 1) the life cycle of ; 2)Eggy Party 's overseas launch; 3) Justice Mobile; and 4) AIGC.

Blue Lotus Research Institute

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