Slide 1: Q4 2023 Supplemental Materials
Q4 | 2023 Q4 2023 Supplemental Materials February 7, 2024 1
Slide 2: Forward-Looking Statements
Q4 | 2023 Forward-Looking Statements This presentation and the live webcast and Q&A session which will be held at 5:30 a.m. Pacific Time/8:30 a.m. Eastern Time on Wednesday, February 7, 2024 contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securi
Slide 3: Non-GAAP Financial Measures
Q4 | 2023 Non-GAAP Financial Measures This presentation contains the non-GAAP financial measures bookings 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 inform
Slide 4: Note Regarding Operating Metrics
Q4 | 2023 Note Regarding Operating Metrics We manage our business by tracking several operating metrics, including those listed below. As a management team, we believe each of these operating metrics provides useful information to investors and others. For information concerning these metrics as mea
Slide 5: Note Regarding Operating Metrics (continued)
Q4 | 2023 Note Regarding Operating Metrics (continued) Hours engaged We define hours engaged as the time spent by our users on the platform, which includes time spent in experiences (which refer to the titles that have been created by developers) and within platform features such as chat and avatar
Slide 6: Revenue, Deferred Revenue, and Bookings Illustration
Q4 | 2023 Revenue, Deferred Revenue, and Bookings Illustration The following example illustrates GAAP revenue recognition for bookings on the Roblox platform. ● User spends $30 on the Roblox platform to purchase 3,000 Robux or Recognized in Month 1 purchases a $30 prepaid card to exchange for 3,000
Slide 7: Revenue
Q4 | 2023 Revenue ($ in millions, unaudited) Year over year growth % Note: In 1Q22 our estimated average user life changed from 23 months to 25 months. Subsequently, in 3Q22 our estimated average user life changed to 28 months and has since remained at 28 months. 7
Slide 8: Revenue by Region
Q4 | 2023 Revenue by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 79% 35% 26% -1% -1% 19% 13% 34% 27% Europe 84% 37% 27% -2% -1% 19% 14% 39% 29% YoY APAC 98% 62% 60% 29% 22% 42% 30% 52% 39% ROW 119% 64% 47% 11% 9% 30% 23% 49% 39% Total 83% 39% 30% 2% 2% 22% 15% 38% 30% N
Slide 9: Four Main Expense Buckets
Q4 | 2023 Four Main Expense Buckets Personnel Certain Cost of Developer Costs excl. Infrastructure and Revenue Exchange Fees Stock-Based Trust & Safety(2) Compensation(1) (1) Costs exclude stock-based compensation expense. (2) Costs exclude personnel, stock-based compensation, and depreciation and a
Slide 10: Cost of Revenue
Q4 | 2023 Cost of Revenue ($ in millions, unaudited) Year over year growth % Note: In 1Q22 our estimated average user life changed from 23 months to 25 months. Subsequently, in 3Q22 our estimated average user life changed to 28 months and has since remained at 28 months. 10
Slide 11: Developer Exchange Fees
Q4 | 2023 Developer Exchange Fees ($ in millions, unaudited) Year over year growth % % of Revenue 37% 31% 29% 26% 28% 27% 24% 29% 31% 28% 24% 24% 30% % of Bookings(1) 18% 18% 19% 20% 21% 23% 22% 22% 20% 24% 21% 20% 20% (1) Bookings is a non-GAAP financial measure that we believe is useful in evaluat
Slide 12: Personnel Costs excl. Stock-Based Compensation
Q4 | 2023 Personnel Costs excl. Stock-Based Compensation ($ in millions, unaudited) Year over year growth % (1) Headcount ~1000 ~1200 ~1300 ~1500 ~1600 ~1700 ~1900 ~2100 ~2100 ~2300 ~2400 ~2500 ~2500 % of Revenue 22% 23% 21% 20% 21% 24% 24% 31% 28% 29% 30% 27% 26% (2) % of Bookings 10% 14% 14% 16% 1
Slide 13: Certain Infrastructure and Trust & Safety
Q4 | 2023 Certain Infrastructure and Trust & Safety(1) ($ in millions, unaudited) Year over year growth % % of Revenue 18% 17% 17% 16% 16% 18% 18% 24% 22% 20% 19% 17% 17% % of Bookings(2) 9% 10% 11% 13% 12% 16% 17% 18% 14% 17% 17% 15% 11% (1) Infrastructure and Trust & Safety excluding personnel, st
Slide 14: Statements of Operations
Q4 | 2023 Statements of Operations ($ in thousands, unaudited) 3 months ended 12/31/2023 12/31/2022 Revenue $ 749,939 $ 579,004 (1) Cost of revenue 171,664 142,432 Developer exchange fees 221,750 182,115 Infrastructure and trust & safety 223,310 198,505 Research and development 341,129 248,407 Gener
Slide 15: Non-GAAP Financial and Operating Metrics Discussion
Q4 | 2023 Non-GAAP Financial and Operating Metrics Discussion 15
Slide 16: Non-GAAP Financial Measures Reconciliation
Q4 | 2023 Non-GAAP Financial Measures Reconciliation Revenue to Bookings 3 months ended 2022 to ($ in thousands, unaudited) 12/31/2023 12/31/2022 12/31/2021 2023 YoY% Revenue $ 749,939 $ 579,004 $ 568,769 30% Add (deduct): Change in deferred revenue 382,196 325,450 203,552 17% Other (5,313) (5,020)
Slide 17: Bookings
Q4 | 2023 Bookings ($ in millions, unaudited) Year over year growth % Note: Bookings is a non-GAAP financial measure that we believe is useful in evaluating our performance and is presented for supplemental information purposes only and should not be considered in isolation from, or as a substitute
Slide 18: Bookings by Region
Q4 | 2023 Bookings by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 16% -11% -7% 13% 19% 21% 19% 14% 21% Europe 14% -6% -10% 0% 9% 17% 30% 37% 37% YoY APAC 63% 62% 47% 21% 18% 26% 17% 15% 18% ROW 24% 13% -6% -7% 11% 41% 36% 43% 49% Total 20% -3% -4% 10% 17% 23% 22% 20% 25
Slide 19: Net Cash Provided by Operating Activities
Q4 | 2023 Net Cash Provided by Operating Activities ($ in millions, unaudited) (1) (1) (1) The 4Q20 and 1Q21 periods include one-time Direct Listing expenses of roughly $3.3 million and $51.9 million, respectively. Excluding these one-time costs, our operating cash flow would be approximately $182.3
Slide 20: Non-GAAP Financial Measures Reconciliation
Q4 | 2023 Non-GAAP Financial Measures Reconciliation Operating Cash Flow to Free Cash Flow 3 months ended 2022 to ($ in thousands, unaudited) 12/31/2023 12/31/2022 12/31/2021 2023 YoY% Net cash provided by operating activities $ 143,305 $ 119,219 $ 122,223 20% Deduct: Acquisition of property and equ
Slide 21: Free Cash Flow
Q4 | 2023 Free Cash Flow ($ in millions, unaudited) (1) (1) Acquisition of property $(51.9M) $(22.1M) $(23.2M) $(3.0M) $(44.9M) $(51.8M) $(83.8M) $(133.4M) $(157.2M) $(91.4M) $(110.9M) $(53.2M) $(65.2M) and equipment Purchases of intangible $(8.5M) $(0.3M) — $(7.6M) — — — $(1.5M) — $(0.5M) $(13.0M)
Slide 22: Average Daily Active Users (DAUs)
Q4 | 2023 Average Daily Active Users (DAUs) (in millions) Year over year growth % 22
Slide 23: DAUs by Region and Age
Q4 | 2023 DAUs by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 78% 62% 5% 6% -1% -2% 3% 17% 19% 16% 15% 11% 17% U13 78% 60% 20% 20% 21% 20% 13% 14% 11% 12% 17% 12% 13% Europe 97% 79% 19% 15% 23% 20% 20% 30% 24% 27% 29% 22% 20% O13 124% 1
Slide 24: Hours Engaged
Q4 | 2023 Hours Engaged (in millions) Year over year growth % 24
Slide 25: Hours Engaged by Region and Age
Q4 | 2023 Hours Engaged by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 122% 88% -9% 0% -11% -10% 1% 21% 29% 21% 17% 12% 16% U13 115% 81% 3% 15% 14% 12% 6% 9% 7% 10% 13% 10% 10% Europe 117% 95% -2% 12% 20% 12% 20% 34% 28% 33% 32% 24% 21%
Slide 26: Average Bookings per DAU
Q4 | 2023 Average Bookings per DAU Year over year growth % Note: Bookings is a non-GAAP financial measure that we believe is useful in evaluating our performance and is presented for supplemental information purposes only and should not be considered in isolation from, or as a substitute for, financ
Slide 27: Average Bookings per DAU by Region
Q4 | 2023 Average Bookings per DAU by Region Year over year growth % US & Canada Europe APAC ROW Note: Historically, we have grouped Xbox users into ROW for the purposes of our reporting (we note that since 4Q20, Xbox users have contributed less than 2% of our quarterly DAUs). 27 Beginning in 4Q23,
Slide 28: Payer Community
Q4 | 2023 Payer Community New & Returning Monthly Unique Payers (in millions) Average Bookings Per Monthly Unique Payer 28
Slide 29: Appendix A
Q4 | 2023 Appendix A RQBLOX 29
Slide 30: Stock-Based Compensation Expense by Department
Q4 | 2023 Stock-Based Compensation Expense by Department ($ in thousands, unaudited) 3 months ended 2022 to 12/31/2023 12/31/2022 12/31/2021 2023 YoY% Infrastructure and trust & safety $ 26,437 $ 16,238 $ 13,173 63% Research and development 174,917 118,921 80,208 47% General and administrative 33,90
Slide 31: Shares Outstanding
Q4 | 2023 Shares Outstanding (in thousands, unaudited) As of 2022 to 12/31/2023 12/31/2022 12/31/2021 2023 YoY% Shares of Class A and B Common stock 631,221 604,674 585,878 4% outstanding Number of stock options 40,159 51,591 63,267 -22% outstanding(1) Number of unvested RSUs 39,846 30,322 14,684 31
Slide 32: Personnel Costs excl. Stock-Based Compensation by Department
Q4 | 2023 Personnel Costs excl. Stock-Based Compensation by Department ($ in thousands, unaudited) 3 months ended 2022 to 12/31/2023 12/31/2022 12/31/2021 2023 YoY% Infrastructure and trust & safety $ 25,518 $ 16,980 $ 12,716 50% Research and development 128,407 106,693 80,711 20% General and admini
Slide 33: Depreciation and Amortization by Department
Q4 | 2023 Depreciation and Amortization by Department ($ in thousands, unaudited) 3 months ended 2022 to 12/31/2023 12/31/2022 12/31/2021 2023 YoY% Infrastructure and trust & safety $ 47,030 $ 36,004 $ 17,254 31% Research and development 5,335 6,004 4,632 -11% General and administrative 2,099 441 18
Slide 34: Appendix B - Liquidity
Q4 | 2023 Appendix B - Liquidity 34
Slide 35: Principal Sources of Liquidity
Q4 | 2023 Principal Sources of Liquidity ($ in millions, unaudited) (1) Total cash, cash equivalents, and investments $3,004 $3,133 $3,075 $3,022 $2,977 $3,092 $3,025 $3,116 $3,237 Net Liquidity(2) $2,017 $2,145 $2,087 $2,033 $1,988 $2,103 $2,020 $2,111 $2,232 (1) Amounts shown represent the net car
Slide 36: Covenant Adjusted EBITDA
Q4 | 2023 Covenant Adjusted EBITDA ($ in millions, unaudited) Note: Covenant Adjusted EBITDA is used in certain covenant calculations specified in the indenture governing our senior notes due 2030 and is not calculated in accordance with GAAP and may not conform to the calculation of Adjusted EBITDA
Slide 37: Covenant Adjusted EBITDA Calculation
Q4 | 2023 Covenant Adjusted EBITDA Calculation ($ in thousands, unaudited) 3 months ended 2022 to 2023 12/31/2023 12/31/2022 12/31/2021 YoY% Consolidated net loss $ (325,340) $ (291,485) $ (147,257) 12% Add (deduct): Interest income (39,530) (21,636) (33) 83% Interest expense 10,298 10,008 6,998 3%
Slide 38: Guidance
Q4 | 2023 Guidance RQBLOX 38
Slide 39: Guidance
Q4 | 2023 Guidance Summary 12 months ended Guidance Actual ($ in millions, unaudited) 12/31/2024 12/31/2023 YoY % Low High Low High GAAP Revenue $3,300.0 $3,400.0 $2,799.3 18% 21% Increase in deferred revenue 852.0 892.0 742.3 15% 20% Increase in deferred cost of revenue (172.0) (177.0) (139.9) 23%
Slide 40: Guidance
Q4 | 2023 Guidance Summary 3 months ended Guidance Actual ($ in millions, unaudited) 3/31/2024 3/31/2023 YoY % Low High Low High GAAP Revenue $755.0 $780.0 $655.3 15% 19% Increase in deferred revenue 158.0 163.0 123.8 28% 32% Increase in deferred cost of revenue (33.0) (35.0) (20.1) 64% 74% (B) Tota
Slide 41: Guidance: Non-GAAP Financial Measures Reconciliation
Q4 | 2023 Guidance: Non-GAAP Financial Measures Reconciliation Revenue to Bookings 12 months ended Guidance Actual ($ in millions, unaudited) 12/31/2024 12/31/2023 YoY % Low High Low High Revenue $3,300.0 $3,400.0 $2,799.3 18% 21% Add (deduct): Change in deferred revenue 852.0 892.0 742.3 15% 20% Ot
Slide 42: Guidance: Non-GAAP Financial Measures Reconciliation
Q4 | 2023 Guidance: Non-GAAP Financial Measures Reconciliation Revenue to Bookings 3 months ended Guidance Actual ($ in millions, unaudited) 3/31/2024 3/31/2023 YoY % Low High Low High Revenue $755.0 $780.0 $655.3 15% 19% Add (deduct): Change in deferred revenue 158.0 163.0 123.8 28% 32% Other (3.0)
Slide 43: Guidance: Non-GAAP Financial Measures Reconciliation
Q4 | 2023 Guidance: Non-GAAP Financial Measures Reconciliation Adjusted EBITDA 12 months ended Guidance Actual ($ in millions, unaudited) 12/31/2024 12/31/2023 YoY % Low High Low High Consolidated net loss $(1,400.0) $(1,365.0) $(1,158.9) 21% 18% Add (deduct): Interest income (160.0) (160.0) (141.8)
Slide 44: Guidance: Non-GAAP Financial Measures Reconciliation
Q4 | 2023 Guidance: Non-GAAP Financial Measures Reconciliation Adjusted EBITDA 3 months ended Guidance Actual ($ in millions, unaudited) 3/31/2024 3/31/2023 YoY % Low High Low High Consolidated net loss $(347.0) $(342.0) $(269.9) 29% 27% Add (deduct): Interest income (38.0) (38.0) (31.1) 22% 22% Int