Roblox FY2025 Q1 Earnings Release
Download PDFQ1 2025
Supplemental Materials
May 1, 2025
2
Forward-Looking Statements
This presentation and the live webcast and Q&A session which will be held at 530 a.m. Pacific Time/830 a.m. Eastern Time on Thursday, May 1, 2025 contain “forward-looking statementsˮ within the
meaning of the “safe harborˮ provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion users with optimism and
civility, our vision to reach 10% of the global gaming content market, the amount of expected earnings for the developer and creator community, our efforts to improve the Roblox Platform, our investments
to pursue the highest standards of trust and safety on our platform, our immersive and video advertising efforts, our efforts to provide a safe online environment for children, our efforts regarding content
curation and live operations, our efforts regarding real world commerce, the use of AI and open source models on our platform, our economy, product efforts and operating performance related to pricing
and platform monetization, our sponsored experiences, branding and new partnerships and our roadmap with respect to each, our business, product, strategy and user growth, our investment strategy,
including with respect to people and opportunities for and expectations of improvements in financial and operating metrics, including operating leverage, margin, free cash flow, operating expenses and
capital expenditures, our expectation of successfully executing such strategies and plans, disclosures regarding the seasonality of our business and future growth rates, including with respect to our user
demographics, changes to our estimated average lifetime of a paying user and the resulting effect on revenue, cost of revenue, deferred revenue and deferred cost of revenue, our expectations of future
net losses and net cash and cash equivalents provided by operating activities, payments to our developers and creators, statements by our Chief Executive Officer and Chief Financial Officer, and our
outlook and guidance for the second quarter and full year 2025, and future periods. These forward-looking statements are made as of the date they were first issued and were based on current plans,
expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,ˮ “vision,ˮ “envision,ˮ “evolving,ˮ “drive,ˮ “anticipate,ˮ “intend,ˮ
“maintain,ˮ
“should,ˮ “believe,ˮ “continue,ˮ “plan,ˮ “goal,ˮ “opportunity,ˮ “estimate,ˮ “predict,ˮ “may,ˮ “will,ˮ “could,ˮ “hope,ˮ “target,ˮ “project,ˮ “potential,ˮ “might,ˮ “shall,ˮ “contemplateˮ and “would,ˮ and variations
of
these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and
uncertainties,
many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors,
including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SECˮ), including our annual reports on Form 10K, our quarterly reports on Form 10Q and other
filings and reports we make with the SEC from time to time. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such
forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs, including the repayment of
our senior notes; the demand for our platform in general; our ability to retain and increase our number of users, developers and creators; changes in the average lifetime of a paying user; the impact of
inflation, tariffs and global economic conditions on our operations; the impact of changing legal and regulatory requirements on our business, including the use of verified parental consent; our ability to
develop enhancements to our platform, and bring them to market in a timely manner; our ability to develop and protect our brand; any misuse of user data or other undesirable activity by third parties on
our platform; our ability to maintain the security and availability of our platform; our ability to detect and minimize unauthorized use of our platform; and the impact of AI on our platform, users, creators, and
developers. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from our expectations is included in the reports we have filed or will
file with the SEC, including our annual reports on Form 10K and our quarterly reports on Form 10Q.
The forward-looking statements included in this presentation represent our views as of the date of this presentation. We anticipate that subsequent events and developments will cause our views to
change. However, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking
statements should not be relied upon as representing our views as of any date subsequent to the date of this presentation.
3
Q1 2025 Results Review
REVENUE
BOOKINGS
1
AVERAGE DAILY
ACTIVE USERS
(“DAUsˮ)
HOURS
ENGAGED
$1,035M
$1,207M
21.7B
97.8M
29% YoY Growth
31% YoY Growth
26% YoY Growth
30% YoY Growth
For endnote descriptions, see
final slide
.
A
Adjusted EBITDA excludes adjustments for increases in deferred revenue and deferred cost of revenue of $177.9 million and $30.8) million, respectively, or a total change in deferrals of $147.1 million.
B
Both operating cash flow and free cash flow benefited from the delay of a $30 million payout to a developer that we now expect to pay in 2Q25. Had we made this payment in 1Q25 as originally intended,
operating cash flow for the quarter would have been $414 million and free cash flow would have been $397 million. The year-over-year growth rates in operating cash flow and free cash flow would have
been
73% and 108%, respectively.
For endnote descriptions, see
final slide
.
CONSOLIDATED
NET LOSS
$(216)M
Q1 2025 Results Review
$444M
NET CASH AND CASH
EQUIVALENTS PROVIDED BY
OPERATING ACTIVITIES
$427M
FREE CASH FLOW
1
86% YoY Growth
B
ADJUSTED
EBITDA
A1
$58M
4
123% YoY Growth
B
Operating and Financial
Metrics Discussion
5
DAUs
(in millions)
Year over year growth %
6
DAUs by Region and Age
(2)
(in millions)
By Age Group
By Region
YoY
YoY
US & Canada
Europe
APAC
ROW
Total
U13
13O
Total
16%
15%
11%
17%
13%
21%
26%
15%
22%
27%
29%
22%
20%
13%
14%
15%
6%
10%
18%
25%
23%
27%
26%
31%
37%
30%
40%
27%
32%
22%
22%
19%
22%
30%
27%
33%
22%
25%
20%
22%
17%
21%
27%
19%
26%
12%
17%
12%
13%
12%
15%
16%
11%
13%
31%
33%
25%
28%
22%
26%
34%
26%
36%
22%
25%
20%
22%
17%
21%
27%
19%
26%
7
US & Canada
Europe
APAC
ROW
U13
13O
Unknown
For endnote descriptions, see
final slide
.
Hours Engaged
(in billions)
Year over year growth %
8
Hours Engaged by Region and Age
(2)
(in billions)
By Age Group
By Region
YoY
YoY
U13
13O
Total
10%
13%
10%
10%
8%
16%
17%
11%
17%
33%
32%
27%
28%
19%
30%
37%
28%
40%
23%
24%
20%
21%
15%
24%
29%
21%
30%
9
21%
17%
12%
16%
12%
23%
28%
17%
27%
33%
32%
24%
21%
11%
16%
17%
9%
16%
8%
16%
21%
27%
23%
39%
45%
33%
44%
28%
30%
22%
21%
15%
22%
29%
26%
36%
23%
24%
20%
21%
15%
24%
29%
21%
30%
US & Canada
Europe
APAC
ROW
Total
U13
13O
Unknown
US & Canada
Europe
APAC
ROW
For endnote descriptions, see
final slide
.
Revenue
(3)
$ in millions, unaudited)
10
Year over year growth %
For endnote descriptions, see
final slide
.
Revenue by Region
(3)(4)
$ in millions, unaudited)
YoY
11
19%
13%
34%
27%
20%
29%
27%
30%
27%
19%
14%
39%
29%
23%
32%
31%
35%
33%
42%
30%
52%
39%
31%
38%
29%
31%
28%
30%
23%
49%
39%
33%
42%
38%
42%
40%
22%
15%
38%
30%
22%
31%
29%
32%
29%
US & Canada
Europe
APAC
ROW
For endnote descriptions, see
final slide
.
US & Canada
Europe
APAC
ROW
Total
Bookings
(1)
$ in millions, unaudited)
Year over year growth %
12
For endnote descriptions, see
final slide
.
Bookings by Region
(1)(4)
$ in millions, unaudited)
13
YoY
US & Canada
Europe
APAC
ROW
For endnote descriptions, see
final slide
.
US & Canada
Europe
APAC
ROW
Total
21%
19%
14%
21%
17%
21%
33%
18%
31%
17%
30%
37%
37%
23%
24%
36%
24%
29%
26%
17%
15%
18%
16%
22%
36%
29%
32%
41%
36%
43%
49%
35%
33%
37%
24%
32%
23%
22%
20%
25%
19%
22%
34%
21%
31%
14
Average Bookings per DAU (“ABPDAU”)
(1)
Year over year growth %
For endnote descriptions, see
final slide
.
ABPDAUs by Region
(1)(2)(4)
Year over year growth %
APAC
Europe
US & Canada
ROW
15
For endnote descriptions, see
final slide
.
Payer Community
New & Returning Monthly Unique Payers (in millions)
Average Bookings Per Monthly Unique Payer
1
16
For endnote descriptions, see
final slide
.
17
Four Main
Expenses
Cost of Revenue
(3)
$ in millions, unaudited)
Year over year growth %
18
For endnote descriptions, see
final slide
.
Developer Exchange Fees
$ in millions, unaudited)
% of Revenue
% of Bookings
1
28%
24%
24%
30%
25%
23%
25%
28%
27%
24%
21%
20%
20%
22%
22%
21%
21%
23%
Year over year growth %
19
For endnote descriptions, see
final slide
.
Certain Infrastructure and Trust & Safety Expense
(5)
$ in millions, unaudited)
Year over year growth %
% of Revenue
% of Bookings
1
20%
19%
17%
17%
16%
14%
14%
13%
13%
17%
17%
15%
11%
13%
13%
11%
9%
11%
20
For endnote descriptions, see
final slide
.
Year over year growth %
% of Revenue
% of Bookings
1
2300
2400
2500
2500
2500
2400
2400
2500
2600
29%
30%
27%
26%
28%
23%
22%
20%
23%
24%
26%
23%
18%
25%
21%
18%
15%
20%
Headcount
21
Personnel Costs excl. Stock-Based Compensation Expense
$ in millions, unaudited)
For endnote descriptions, see
final slide
.
Liquidity, Cash Flow, &
Shares Outstanding
22
Principal Sources of Liquidity
$ in millions, unaudited)
$2,103
$2,020
$2,111
$2,232
$2,464
$2,596
$2,876
$3,013
$3,504
Net Liquidity
6
Total cash, cash
equivalents, and
investments
$3,092
$3,025
$3,116
$3,237
$3,469
$3,601
$3,882
$4,020
$4,511
23
7
For endnote descriptions, see
final slide
.
Net Cash and Cash Equivalents Provided by Operating Activities
$ in millions, unaudited)
24
A
Operating cash flow benefited from the delay of a $30 million payout to a developer that we now expect to pay in 2Q25. Had we made this payment in the 1Q25 as originally intended, operating cash flow
for 1Q25 would have been $413.9 million.
A
Free Cash Flow
(1)
$ in millions, unaudited)
Acquisition of property
and equipment
Purchases of intangible
assets
$91.4M
$110.9M
$53.2M
$65.2M
$46.7M
$39.7M
$29.4M
$63.9M
$17.4M
$0.5M
$13.0M
—
—
$1.2M
$0.2M
—
—
—
25
A
Free cash flow benefited from the delay of a $30 million payout to a developer that we now expect to pay in 2Q25. Had we made this payment in 1Q25 as originally intended, free cash flow for 1Q25 would
have
been $396.5 million.
For endnote descriptions, see
final slide
.
A
Shares Outstanding
(in thousands, unaudited)
As of
3/31/2025
3/31/2024
3/31/2023
2024 to
2025 YoY%
Shares of Class A and B Common stock
outstanding
677,750
639,734
610,487
6%
Number of stock options outstanding
A
22,815
37,488
49,148
39%
Number of unvested RSUs outstanding
32,758
38,757
33,956
15%
Number of ESPP shares to be
purchased
832
2,164
1,864
62%
Number of PSU awards based on
performance target achievement at
period-end
B
187
34
–
NM
Number of other awards and warrants
outstanding or unreleased
356
388
689
8%
Total outstanding and potentially dilutive
shares
734,698
718,565
696,144
2%
26
For further information on these award types, please refer to our annual and quarterly SEC filings.
A
The weighted average exercise price per outstanding option was $3.17, $2.98, and $2.86 as of 1Q25, 1Q24, and 1Q23, respectively.
B
Represents the actual or hypothetical number of unvested shares earned under the Companyʼs PSU awards, based on actual performance as of the respective balance sheet date.)
Guidance
27
28
2Q25 Guidance
(8)
Summary
$ in millions)
3 months ended
Guidance
Actual
6/30/2025
6/30/2024
YoY %
Low
High
Low
High
Revenue
$1,020.0
$1,045.0
$893.5
14%
17%
Bookings
1
$1,165.0
$1,190.0
$955.2
22%
25%
Consolidated net loss
$288.0
$268.0
$207.2
39%
29%
Adjusted EBITDA
1
$25.0
$45.0
$66.5
62%
32%
Increase in deferred revenue
$150.0
$150.0
$66.7
125%
125%
Increase in deferred cost of revenue
$15.0
$15.0
$18.8
20%
20%
Total change in deferrals
$135.0
$135.0
$47.9
182%
182%
Net cash and cash equivalents provided by operating activities
A
$160.0
$175.0
$151.4
6%
16%
Capital expenditures and purchases of intangible assets
$55.0
$55.0
$39.9
38%
38%
Free cash flow
1A
$105.0
$120.0
$111.6
6%
8%
A
Operating cash flow guidance for 2Q25 is negatively impacted by a $30 million payout to a developer that was delayed in 1Q25, and which we now expect to pay in 2Q25. Had we made this payment in 1Q25,
our guidance for net cash and cash equivalents provided by operating activities would have been $190 million – $205 million, or year-over-year increases of 2535% and our guidance for free cash flow would
have been $135 million – $150 million, or a year-over-year change of 2134%.
For endnote descriptions, see
final slide
.
12 months ended
Guidance
Actual
12/31/2025
12/31/2024
YoY %
Low
High
Low
High
Revenue
$4,290.0
$4,365.0
$3,602.0
19%
21%
Bookings
1
$5,285.0
$5,360.0
$4,369.1
21%
23%
Consolidated net loss
$1,037.0
$977.0
$940.6
10%
4%
Adjusted EBITDA
1
$205.0
$265.0
$180.2
14%
47%
Increase in deferred revenue
$1,015.0
$1,015.0
$792.4
28%
28%
Increase in deferred cost of revenue
$170.0
$170.0
$164.9
3%
3%
Total change in deferrals
$845.0
$845.0
$627.5
35%
35%
Net cash and cash equivalents provided by operating activities
$1,170.0
$1,215.0
$822.3
42%
48%
Capital expenditures and purchases of intangible assets
$285.0
$285.0
$181.0
57%
57%
Free cash flow
1
$885.0
$930.0
$641.3
38%
45%
29
Fiscal Year Guidance
(8)
Summary
$ in millions)
For endnote descriptions, see
final slide
.
2Q25 Guidance: Non-GAAP Financial Measures Reconciliation
Revenue
8
to Bookings
1
$ in millions)
3 months ended
Guidance
Actual
6/30/2025
6/30/2024
YoY %
Low
High
Low
High
Revenue
$1,020.0
$1,045.0
$893.5
14%
17%
Add (deduct):
Change in deferred revenue
150.0
150.0
66.7
125%
125%
Other
5.0
5.0
5.1
2%
2%
Bookings
$1,165.0
$1,190.0
$955.2
22%
25%
30
For endnote descriptions, see
final slide
.
Fiscal Year Guidance:
Non-GAAP Financial Measures Reconciliation
Revenue
8
to Bookings
1
$ in millions)
12 months ended
Guidance
Actual
12/31/2025
12/31/2024
YoY %
Low
High
Low
High
Revenue
$4,290.0
$4,365.0
$3,602.0
19%
21%
Add (deduct):
Change in deferred revenue
1,015.0
1,015.0
792.4
28%
28%
Other
20.0
20.0
25.3
21%
21%
Bookings
$5,285.0
$5,360.0
$4,369.1
21%
23%
31
For endnote descriptions, see
final slide
.
2Q25 Guidance: Non-GAAP Financial Measures Reconciliation
Consolidated Net Loss
8
to Adjusted EBITDA
18
$ in millions)
3 months ended
Guidance
Actual
6/30/2025
6/30/2024
YoY %
Low
High
Low
High
Consolidated Net Loss
$288.0
$268.0
$207.2
39%
29%
Add (deduct):
Interest income
40.0
40.0
44.4
10%
10%
Interest expense
11.0
11.0
10.2
8%
8%
Other (income)/expense, net
—
—
3.3
NM
NM
Provision for/(benefit from) income taxes
1.0
1.0
0.1
NM
NM
Depreciation and amortization expense
56.0
56.0
52.8
6%
6%
Stock-based compensation expense
285.0
285.0
251.9
13%
13%
RTO severance charge
A
—
—
0.2
NM
NM
Adjusted EBITDA
$25.0
$45.0
$66.5
62%
32%
32
A
Relates to cash severance costs associated with the Companyʼs return-to-office (“RTOˮ) plan announced in October 2023, which required a subset of the Companyʼs remote employees to begin working
from the San Mateo headquarters for three days a week, beginning in the summer of 2024.
For endnote descriptions, see
final slide
.
Fiscal Year Guidance:
Non-GAAP Financial Measures Reconciliation
Consolidated Net Loss
8
to Adjusted EBITDA
18
$ in millions)
12 months ended
Guidance
Actual
12/31/2025
12/31/2024
YoY %
Low
High
Low
High
Consolidated Net Loss
$1,037.0
$977.0
$940.6
10%
4%
Add (deduct):
Interest income
160.0
160.0
179.5
11%
11%
Interest expense
42.0
42.0
41.2
2%
2%
Other (income)/expense, net
3.0
3.0
11.5
NM
NM
Provision for/(benefit from) income
taxes
3.0
3.0
4.1
27%
27%
Depreciation and amortization expense
225.0
225.0
226.4
1%
1%
Stock-based compensation expense
1,135.0
1,135.0
1,015.8
12%
12%
RTO severance charge
A
—
—
1.3
NM
NM
Adjusted EBITDA
$205.0
$265.0
$180.2
14%
47%
33
A
Relates to cash severance costs associated with the Companyʼs return-to-office (“RTOˮ) plan announced in October 2023, which required a subset of the Companyʼs remote employees to begin working
from the San Mateo headquarters for three days a week, beginning in the summer of 2024.
For endnote descriptions, see
final slide
.
3 months ended
Guidance
Actual
6/30/2025
6/30/2024
YoY %
Low
High
Low
High
Net cash and cash equivalents provided by
operating activities
$160.0
$175.0
$151.4
6%
16%
Deduct:
Acquisition of property and equipment
55.0
55.0
39.7
39%
39%
Purchases of intangible assets
—
—
0.2
NM
NM
Free cash flow
$105.0
$120.0
$111.6
6%
8%
34
2Q25 Guidance: Non-GAAP Financial Measures Reconciliation
Net Cash and Cash Equivalents
A
Provided by Operating Activities to Free Cash Flow
1A
$ in millions)
A
Operating cash flow guidance for 2Q25 is negatively impacted by a $30 million payout to a developer that was delayed in 1Q25, and which we now expect to pay in 2Q25. Had we made this payment in 1Q25,
our guidance for net cash and cash equivalents provided by operating activities would have been $190 million – $205 million, or year-over-year increases of 2535% and our guidance for free cash flow would
have been $135 million – $150 million, or a year-over-year change of 2134%.
For endnote descriptions, see
final slide
.
12 months ended
Guidance
Actual
12/31/2025
12/31/2024
YoY %
Low
High
Low
High
Net cash and cash equivalents provided by
operating activities
$1,170.0
$1,215.0
$822.3
42%
48%
Deduct:
Acquisition of property and equipment
285.0
285.0
179.6
59%
59%
Purchases of intangible assets
—
—
1.4
NM
NM
Free cash flow
$885.0
$930.0
$641.3
38%
45%
35
Fiscal Year Guidance:
Non-GAAP Financial Measures Reconciliation
Net Cash and Cash Equivalents Provided by Operating Activities to Free Cash Flow
1
$ in millions)
For endnote descriptions, see
final slide
.
Appendix
36
●
Paying user spends Robux (on average, within 3 days
A
) on the platform to
purchase:
●
Paying user spends
$30
on the Roblox platform to purchase 3,000 Robux
or
purchases a
$30
prepaid card to exchange for 3,000 Robux
Bookings recognized = $30
Recognized in Month 1
Durable Virtual Items
B
=
2,700 Robux, or
$27
GAAP Revenue Recognition
Revenue is recognized over estimated average lifetime of paying user
C
$27 bookings / 27 months
C
= $1 per month
Month 1
Months 227
$1
$1 / month $26 deferred)
Revenue recognized by month
Revenue recognized = $1
(associated with durable items)
Deferred Revenue
at end of Month 1 $26
(to be recognized as revenue
in months 227
Consumable Virtual Items
B
=
300 Robux, or
$3
GAAP Revenue Recognition
Revenue is recognized immediately upon consumption
Revenue recognized = $3
(associated with consumable items)
$3 bookings in month of purchase
Recognized in Month 1
Total Revenue recognized $4 + Deferred Revenue $26 = Bookings $30
37
Revenue, Deferred Revenue, and Bookings Illustration
The following example illustrates GAAP revenue recognition for bookings on the Roblox platform.
A
For the three months ended March 31, 2025, average number of days it takes our users to spend Robux following purchase of Robux through our Platform or following redemption of Robux from
prepaid cards.
B
For the three months ended March 31, 2025, durable virtual items accounted for 91% of virtual item-related revenue while consumable virtual items accounted for 9%. For the purpose of the example,
we did not apply these exact percentages.
C
For the three months ended March 31, 2025, the estimated average lifetime for a paying user was 27 months.
Non-GAAP Financial Measures Reconciliation
Revenue to Bookings
1
$ in thousands, unaudited)
3 months ended
3/31/2025
3/31/2024
3/31/2023
2024 to
2025 YoY%
Revenue
$ 1,035,207
$ 801,300
$ 655,344
29%
Add (deduct):
Change in deferred revenue
177,896
127,604
123,783
39%
Other
6,393
5,147
5,308
24%
Bookings
$ 1,206,710
$ 923,757
$ 773,819
31%
38
For endnote descriptions, see
final slide
.
Non-GAAP Financial Measures Reconciliation
Consolidated Net Loss to Adjusted EBITDA
1
$ in thousands, unaudited)
39
3 months ended
3/31/2025
3/31/2024
3/31/2023
2024 to
2025 YoY%
Consolidated Net Loss
$ 216,340
$ 271,920
$ 269,948
20%
Add (deduct):
Interest income
46,323
42,170
31,082
10%
Interest expense
10,350
10,363
10,012
%
Other (income)/expense, net
3,259
346
440
NM
Provision for/(benefit from) income taxes
863
1,053
731
18%
Depreciation and amortization expense
53,734
53,741
47,412
%
Stock-based compensation expense
258,936
240,502
184,904
8%
RTO severance charge
A
–
1,182
–
NM
Other non-cash charges
B
–
–
6,988
NM
Adjusted EBITDA
$ 57,961
$ 6,903
$ 50,543
NM
A
Relates to cash severance costs associated with the Companyʼs return-to-office (“RTOˮ) plan announced in October 2023, which required a subset of the Companyʼs remote employees to begin working
from the San Mateo headquarters for three days a week, beginning in the summer of 2024.
B
Includes impairment expense related to certain operating lease right-of-use assets and related property and equipment.
For endnote descriptions, see
final slide
.
Non-GAAP Financial Measures Reconciliation
Net Cash and Cash Equivalents Provided by Operating Activities to Free Cash Flow
1
$ in thousands, unaudited)
3 months ended
3/31/2025
3/31/2024
3/31/2023
2024 to
2025 YoY%
Net cash and cash equivalents provided by
operating activities
$ 443,914
$ 238,946
$ 173,781
86%
Deduct:
Acquisition of property and equipment
17,365
46,680
91,359
63%
Purchases of intangible assets
–
1,200
500
NM
Free Cash Flow
$ 426,549
$ 191,066
$ 81,922
123%
40
For endnote descriptions, see
final slide
.
Personnel Costs excl. Stock-Based Compensation Expense by Department
$ in thousands, unaudited)
3 months ended
3/31/2025
3/31/2024
3/31/2023
2024 to
2025 YoY%
Infrastructure and trust & safety
$ 30,599
$ 29,100
$ 21,636
5%
Research and development
155,969
149,638
123,214
4%
General and administrative
35,250
33,955
33,150
4%
Sales and marketing
16,645
13,670
10,070
22%
Total Personnel Costs excl. SBC
$ 238,463
$ 226,363
$ 188,070
5%
41
Depreciation and Amortization Expense by Department
$ in thousands, unaudited)
3 months ended
3/31/2025
3/31/2024
3/31/2023
2024 to
2025 YoY%
Infrastructure and trust & safety
$ 43,786
$ 46,191
$ 41,014
5%
Research and development
8,565
7,055
5,963
21%
General and administrative
1,039
345
376
201%
Sales and marketing
344
150
59
130%
Total Depreciation and Amortization Expense
$ 53,734
$ 53,741
$ 47,412
%
42
Stock-Based Compensation Expense by Department
$ in thousands, unaudited)
3 months ended
3/31/2025
3/31/2024
3/31/2023
2024 to
2025 YoY%
Infrastructure and trust & safety
$ 33,550
$ 27,275
$ 18,532
23%
Research and development
176,900
173,247
129,257
2%
General and administrative
36,014
31,645
30,650
14%
Sales and marketing
12,472
8,335
6,465
50%
Total Stock-Based Compensation Expense
$ 258,936
$ 240,502
$ 184,904
8%
43
44
Non-GAAP Financial Measures Definitions
This presentation contains the non-GAAP financial measures bookings, Adjusted EBITDA, and free cash flow. We use this non-GAAP financial information to evaluate our ongoing operations, for
internal planning, and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial
performance.
Bookings
is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Substantially all of our bookings are generated from sales of virtual currency,
which can ultimately be converted to virtual items on the Roblox Platform. Sales of virtual currency reflected as bookings include one-time purchases and monthly subscriptions purchased via
payment processors or through prepaid cards. Bookings also include an insignificant amount from advertising and licensing arrangements. We believe bookings provide a timelier indication of trends
in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The
change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our
business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions.
Free cash flow
represents the net cash and cash equivalents provided by operating activities less purchases of property and equipment, and intangible assets acquired through asset acquisitions.
We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core
operations that, after the purchases of property and equipment, and intangible assets acquired through asset acquisitions, can be used for strategic initiatives.
Adjusted EBITDA
represents our GAAP consolidated net loss, excluding interest income, interest expense, other income/(expense), provision for/(benefit from) income taxes, depreciation and
amortization expense, stock-based compensation expense, and certain other nonrecurring adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted EBITDA
is
useful to investors and management in understanding our ongoing operations and ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by other companies
and therefore comparability may be limited.
Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set
of
accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to
evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for
supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.
A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial used in this presentation is included in this presentation. We encourage investors and others to
review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP financial measures in conjunction with the
most directly comparable GAAP financial measure.
45
Note Regarding Operating Metrics
We manage our business by tracking several operating metrics, including average daily active users (“DAUs”), hours engaged, bookings, average bookings per DAU (“ABPDAU”), average new and returning monthly unique
payers, monthly repurchase rate, and average bookings per monthly unique payer. As a management team, we believe each of these operating metrics provides useful information to investors and others. For information
concerning these metrics as measured by us, see “Managementʼs Discussion and Analysis of Financial Condition and Results of Operations” in the most recently filed
filed annual report on Form 10K or our quarterly
reports on Form 10Q
.
While these metrics are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring how our platform is used. These metrics are
determined by using internal data gathered on an analytics platform that we developed and operate and have not been validated by an independent third party. This platform tracks user account and session activity. If we fail to
maintain an effective analytics platform, our metrics calculations may be inaccurate. These metrics are also determined by certain demographic data provided to us by the user, such as age or gender. If our users provide us
with
incorrect or incomplete information, then our estimates may be inaccurate. Our estimates also may change as our methodologies and platform evolve, including through the application of new data sets or technologies or as our
platform changes with new features and enhancements.
We believe that these metrics are reasonable estimates of our user base for the applicable period of measurement, and that the methodologies we employ and update from time-to-time to create these metrics are reasonable
bases to identify trends in user behavior. Because we update the methodologies we employ to create metrics, our current and future period metrics may not be comparable to those in prior periods. For example, we are
exploring
using technology to obtain greater granularity in our estimates of our user demographics. As a result of our using such technology, prior period demographics may not be comparable to future ones. Similarly, our metrics may
differ from estimates published by third parties or from similarly-titled metrics from other companies due to differences in methodology.
Finally, the accuracy of our metrics may be affected by certain factors relating to user activity and our platformʼs systems and our ability to identify and detect attempts to replicate legitimate user activity, often referred to as
botting. See the section of
our most recently filed annual report on Form 10K or our quarterly reports on Form 10Q
titled “Risk Factors—Our user metrics and other estimates are subject to inherent challenges in
measurement, and real or perceived inaccuracies in those metrics may significantly harm and negatively affect our reputation and our business
DAUs
We define a DAU as a user who has logged in and visited Roblox through our website or application on a unique registered account on a given calendar day. If a registered, logged in user visits Roblox more than once within a
24-hour period that spans two calendar days, that user is counted as a DAU only for the first calendar day. We believe this method better reflects global engagement on the platform compared to a method based purely on a
calendar-day cutoff. DAUs for a specified period is the average of the DAUs for each day during that period. As an example, DAUs for the month of September would be an average of DAUs during that 30 day period.
Other companies, including companies in our industry, may calculate DAUs differently. We track DAUs as an indicator of the size of the audience engaged on our platform. DAUs are also broken out by geographic region to help
us understand the global engagement on our platform. The geographic location data collected is based on the IP address associated with the account when an account is initially registered on Roblox. The IP address may not
always accurately reflect a userʼs actual location at the time they engaged with our platform. Prior to the fourth quarter of 2023, we grouped Xbox users into Rest of World for the purposes of our reporting and beginning in the
fourth quarter of 2023, Xbox users have been reported in their respective geographies (we note that prior to the fourth quarter of 2023, Xbox users have represented less than 2% of our total quarterly DAUs and quarterly hours
engaged).
Because DAUs measure account activity and an individual user may actively use our platform within a particular day on multiple accounts for which that individual registered, our DAUs are not a measure of unique individuals
accessing Roblox. References to “user” or our “user base” in this supplement refer to users as described in our definition of DAUs. Additionally, if undetected, fraud and unauthorized access to our platform may contribute, from
time to time, to an overstatement of DAUs. In many cases, fraudulent accounts are created by bots to inflate user activity for a particular developerʼs content on our platform, thus making the developerʼs experience (which refer
to the titles that have been created by developers) or other content appear more popular than it really is. We strive to detect and minimize fraud and unauthorized access to our platform. See the sections of
our most recently
filed annual report on Form 10K or our quarterly reports on Form 10Q
titled “Risk Factors—Our user metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies in
those metrics may significantly harm and negatively affect our reputation and our business,” and “Risk Factors—Some developers, creators, and users on our Platform may make unauthorized, fraudulent, or illegal use of Robux
and other digital goods or experiences on our Platform, including by use of unauthorized third-party websites or “cheating” programs.”
46
Note Regarding Operating Metrics (continued)
Hours Engaged
We define hours engaged as the time spent by our users on the platform. We calculate total hours engaged as the aggregate of user session lengths in a given period. We estimate this length of time using internal company
systems that track user activity on our platform as discrete events, and aggregate these discrete activities into a user session. A given user session on our platform may include, among other things, time spent in experiences, in
Roblox Studio, in platform features such as chat and avatar personalization, in the Creator Store, and some amount of non-active time due to limits within the tracking systems and our estimation methodology. User sessions on
our platform may be tracked differently across devices and platforms, including mobile, tablet, web, desktop, and game console due to inherent differences in functionality and user behaviors. As we continue to develop new
features and products, we expect that our user session calculation will continue to evolve. We continue to review our user session calculation methodologies and may develop alternative calculation methods to increase
consistency and accuracy in future periods.
We track hours engaged as an indicator of the user engagement on our platform. Hours engaged are also broken out by geographic region to help us understand the global engagement on our platform.
We continuously strive to increase the sophistication of our company systems to detect different user activities, including botting, non-active time and other activities across all devices. As we continue to improve our ability to
detect and deter certain user behaviors on the platform and different devices, including unauthorized use of our platform, we may see an impact to our overall hours engaged as our measurement systems evolve and our efforts
to reduce botting become more successful.
See the section of
our most recently filed annual report on Form 10K or our quarterly reports on Form 10Q
titled “Risk Factors—Our user metrics and other estimates are subject to inherent challenges in
measurement, and real or perceived inaccuracies in those metrics may significantly harm and negatively affect our reputation and our business.”
ABPDAU
We define ABPDAU as bookings in a given period divided by the DAUs for such period. We primarily use ABPDAU as a way to understand how we are monetizing across all of our users. ABPDAU is also broken out by geographic
region to help us understand the global monetization on our platform.
Average New and Returning Monthly Unique Payers and Monthly Repurchase Rate
We define new monthly unique payers as user accounts that made their first payment on the platform, or via redemption of prepaid cards, during a given month. Average new monthly unique payers for a specified period is the
average of the new monthly unique payers for each month during that period. Because we do not always have the data necessary to link an individual who has paid under multiple user accounts, an individual may be counted as
multiple new monthly unique payers.
We define returning monthly unique payers as user accounts that have made a payment on the platform, or via redemption of prepaid cards, in the current month and in any prior month. Average returning monthly unique
payers
for a specified period is the average of the returning monthly unique payers for each month during that period. Because we do not always have the data necessary to link an individual who has paid under multiple user accounts,
an individual may be counted as multiple returning monthly unique payers.
We define monthly repurchase rate as the returning monthly unique payers in the current month, divided by the sum of the prior monthʼs new monthly unique payers and returning monthly unique payers. Average monthly
repurchase rate for a specified period is the average of the monthly repurchase rates for each month during that period.
Average Bookings per Monthly Unique Payer
We define average bookings per monthly unique payer as bookings in the specified period divided by the average monthly unique payers for the same specified period.
3
Beginning 2Q24, the estimated average lifetime of a payer changed from 28 months to
27 months.
4
Revenue and bookings are broken out by geographic region based on the billing
country
of our payers at the time of purchase, to help us understand the global engagement on
our platform. The billing address may not always accurately reflect a payerʼs actual
location at the time of purchase.
5
Infrastructure and Trust & Safety expenses, excluding personnel, stock-based
compensation, and depreciation and amortization expenses.
6
Net liquidity represents cash, cash equivalents, and short-term and long-term
investments, less long-term debt, net.
7
Amounts shown for long-term debt, net represents the net carrying amount of the
senior notes due 2030 and beginning with 2Q23, also include the non-eliminated
carrying amount of notes issued by the Companyʼs fully consolidated joint venture; the
principal amount of the senior notes due 2030 is $1.0 billion and the principal amount of
the non-eliminated portion of the notes associated with the fully consolidated joint
venture is $14.7 million.
8
Our revenue guidance assumes that there are no material changes in estimates used in
our revenue recognition, such as the estimated average lifetime of a paying user.
47
Endnotes
Note: Amounts reported in millions are rounded based on the amounts in thousands. As a result,
the sum of the components reported in millions may not equal the total amount reported in millions
due to rounding. In addition, percentages presented are calculated from the underlying numbers in
thousands and may not add to their respective totals due to rounding.
1
Bookings, Adjusted EBITDA, and Free Cash Flow are non-GAAP financial measures that
we believe are useful in evaluating our performance and are presented for
supplemental
information purposes only and should not be considered in isolation from, or as a
substitute for, financial information presented in accordance with GAAP. For further
information, please refer to definition and reconciliation slides within the presentation
and our annual and quarterly SEC filings.
2
Prior to the fourth quarter of 2023, we grouped Xbox users into RoW for the purposes
of
our reporting and beginning in the fourth quarter of 2023, Xbox users have been
reported in their respective geographies (we note that prior to the fourth quarter of
2023, Xbox users have represented less than 2% of our total quarterly DAUs and
quarterly hours engaged). Under the previous reporting methodology, DAUs, Hours
Engaged, and ABPDAUs YoY growth would have been as follows:
4Q23
1Q24
2Q24
3Q24
DAUs
US & Canada
14%
10%
17%
22%
Europe
19%
12%
12%
13%
APAC
26%
26%
30%
37%
ROW
26%
22%
26%
34%
Hours Engaged
US & Canada
13%
9%
19%
24%
Europe
19%
10%
14%
15%
APAC
26%
23%
39%
45%
ROW
27%
20%
27%
35%
4Q23
1Q24
2Q24
3Q24
ABPDAUs
US & Canada
6%
6%
3%
9%
Europe
15%
10%
10%
20%
APAC
7%
8%
6%
0%
ROW
17%
10%
6%
3%
