Slide 1: Q3 2023 Supplemental Materials
Q3 | 2023 Q3 2023 Supplemental Materials November 8, 2023 1
Slide 2: Forward-Looking Statements
Q3 | 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, November 8, 2023 contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securi
Slide 3: Non-GAAP Financial Measures
Q3 | 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
Q3 | 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)
Q3 | 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
Q3 | 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 $30 prepaid card to exchange for 3,000
Slide 7: Revenue
Q3 | 2023 Revenue ($ in millions, unaudited) Year over year growth % Note: In 1Q22 our estimated user life changed from 23 months to 25 months. Subsequently, in 3Q22 our estimated user life changed to 28 months and has remained at 28 months. 7
Slide 8: Revenue by Region
Q3 | 2023 Revenue by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 99% 79% 35% 26% -1% -1% 19% 13% 34% Europe 104% 84% 37% 27% -2% -1% 19% 14% 39% YoY APAC 97% 98% 62% 60% 29% 22% 42% 30% 52% ROW 152% 119% 64% 47% 11% 9% 30% 23% 49% Total 102% 83% 39% 30% 2% 2% 22% 15% 38
Slide 9: Four Main Expense Buckets
Q3 | 2023 Four Main Expense Buckets Personnel Certain Cost of Developer Costs excl. Infrastructure and Revenue Exchange Fees Stock-Based Trust & Safety2 Compensation1 1 Costs exclude stock-based compensation expense. 2 Costs exclude personnel, stock-based compensation, and depreciation and amortizat
Slide 10: Cost of Revenue
Q3 | 2023 Cost of Revenue ($ in millions, unaudited) Year over year growth % Note: In 1Q22 our estimated user life changed from 23 months to 25 months. Subsequently, in 3Q22 our estimated user life changed to 28 months and has remained at 28 months. 10
Slide 11: Developer Exchange Fees
Q3 | 2023 Developer Exchange Fees ($ in millions, unaudited) Year over year growth % % of Revenue 34% 37% 31% 29% 26% 28% 27% 24% 29% 31% 28% 24% 24% % of Bookings1 17% 18% 18% 19% 20% 21% 23% 22% 22% 20% 24% 21% 20% 1 Bookings is a non-GAAP financial measure that we believe is useful in evaluating
Slide 12: Personnel Costs excl. Stock-Based Compensation
Q3 | 2023 Personnel Costs excl. Stock-Based Compensation ($ in millions, unaudited) Year over year growth % (1) Headcount ~900 ~1000 ~1200 ~1300 ~1500 ~1600 ~1700 ~1900 ~2100 ~2100 ~2300 ~2400 ~2500 % of Revenue 22% 22% 23% 21% 20% 21% 24% 24% 31% 28% 29% 30% 27% 2 % of Bookings 11% 10% 14% 14% 16%
Slide 13: Certain Infrastructure and Trust & Safety
Q3 | 2023 Certain Infrastructure and Trust & Safety1 ($ in millions, unaudited) Year over year growth % % of Revenue 21% 18% 17% 17% 16% 16% 18% 18% 24% 22% 20% 19% 17% % of Bookings2 10% 9% 10% 11% 13% 12% 16% 17% 18% 14% 17% 17% 15% 1 Infrastructure and Trust & Safety excluding personnel, stock-ba
Slide 14: Statements of Operations
Q3 | 2023 Statements of Operations ($ in thousands, unaudited) 3 Months ended 9/30/2023 9/30/2022 Revenue $713,225 $517,707 1 Cost of revenue 163,581 126,437 Developer exchange fees 170,719 151,470 Infrastructure and trust & safety 218,968 190,986 Research and development 321,613 235,551 General and
Slide 15: Non-GAAP Financial and Operating Metrics Discussion
Q3 | 2023 Non-GAAP Financial and Operating Metrics Discussion 15
Slide 16: Non-GAAP Financial Measures Reconciliation
Q3 | 2023 Non-GAAP Financial Measures Reconciliation Revenue to Bookings 3 Months ended 2022 to ($ in thousands, unaudited) 9/30/2023 9/30/2022 9/30/2021 2023 YoY% Revenue $ 713,225 $ 517,707 $ 509,336 38% Add (deduct): Change in deferred revenue 130,957 187,991 131,439 -30% Other (4,729) (3,982) (2
Slide 17: Bookings
Q3 | 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: Net Cash Provided by Operating Activities
Q3 | 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 $182.3 m
Slide 19: Non-GAAP Financial Measures Reconciliation
Q3 | 2023 Non-GAAP Financial Measures Reconciliation Operating Cash Flow to Free Cash Flow 3 Months ended 2022 to ($ in thousands, unaudited) 9/30/2023 9/30/2022 9/30/2021 2023 YoY% Net cash provided by operating activities $ 112,704 $ 67,144 $ 181,166 68% Deduct: Acquisition of property and equipme
Slide 20: Free Cash Flow
Q3 | 2023 Free Cash Flow ($ in millions, unaudited) (1) (1) Acquisition of property $(25.9M) $(51.9M) $(22.1M) $(23.2M) $(3.0M) $(44.9M) $(51.8M) $(83.8M) $(133.4M) $(157.2M) $(91.4M) $(110.9M) $(53.2M) and equipment Purchases of intangible — $(8.5M) $(0.3M) — $(7.6M) — — — $(1.5M) — $(0.5M) $(13.0M
Slide 21: Daily Active Users (DAUs)
Q3 | 2023 Daily Active Users (DAUs) (in millions) Year over year growth % 21
Slide 22: DAUs by Region and Age
Q3 | 2023 DAUs by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 70% 78% 62% 5% 6% -1% -2% 3% 17% 19% 16% 15% 11% U13 79% 78% 60% 20% 20% 21% 20% 13% 14% 11% 12% 17% 12% Europe 113% 97% 79% 19% 15% 23% 20% 20% 30% 24% 27% 29% 22% O13 126%
Slide 23: Hours Engaged
Q3 | 2023 Hours Engaged (in millions) Year over year growth % 23
Slide 24: Hours Engaged by Region and Age
Q3 | 2023 Hours Engaged by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 107% 122% 88% -9% 0% -11% -10% 1% 21% 29% 21% 17% 12% U13 122% 115% 81% 3% 15% 14% 12% 6% 9% 7% 10% 13% 10% Europe 135% 117% 95% -2% 12% 20% 12% 20% 34% 28% 33% 32%
Slide 25: Bookings by Region
Q3 | 2023 Bookings by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 23% 16% -11% -7% 13% 19% 21% 19% 14% Europe 21% 14% -6% -10% 0% 9% 17% 30% 37% YoY APAC 61% 63% 62% 47% 21% 18% 26% 17% 15% ROW 67% 24% 13% -6% -7% 11% 41% 36% 43% Total 28% 20% -3% -4% 10% 17% 23% 22% 20
Slide 26: Average Bookings per DAU
Q3 | 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
Q3 | 2023 Average Bookings per DAU by Region Year over year growth % US & Canada Europe APAC ROW 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 isolatio
Slide 28: Payer Community
Q3 | 2023 Payer Community New & Returning Monthly Unique Payers (in millions) Average Bookings Per Monthly Unique Payer 28
Slide 29: Appendix A
Q3 | 2023 Appendix A RQBLOX 29
Slide 30: Stock-Based Compensation Expense by Department
Q3 | 2023 Stock-Based Compensation Expense by Department ($ in thousands, unaudited) 3 Months ended 2022 to 9/30/2023 9/30/2022 9/30/2021 2023 YoY% Infrastructure and trust & safety 24,483 14,948 8,597 64% Research and development 155,651 111,450 56,423 40% General and administrative 32,200 28,327 2
Slide 31: Shares Outstanding
Q3 | 2023 Shares Outstanding (in thousands, unaudited) As of 2022 to 2023 9/30/2023 9/30/2022 9/30/2021 YoY% Shares of Class A and B Common stock 623,588 600,641 578,471 4% outstanding Number of stock options outstanding1 43,306 53,412 69,847 -19% Number of unvested RSUs 36,880 30,731 10,844 20% out
Slide 32: Personnel Costs excl. Stock-Based Compensation by Department
Q3 | 2023 Personnel Costs excl. Stock-Based Compensation by Department ($ in thousands, unaudited) 3 Months ended 2022 to 9/30/2023 9/30/2022 9/30/2021 2023 YoY% Infrastructure and trust & safety 23,888 21,060 10,937 13% Research and development 128,604 101,859 70,422 26% General and administrative
Slide 33: Depreciation and Amortization by Department
Q3 | 2023 Depreciation and Amortization by Department ($ in thousands, unaudited) 3 Months ended 2022 to 9/30/2023 9/30/2022 9/30/2021 2023 YoY% Infrastructure and trust & safety 46,014 28,665 15,277 61% Research and development 6,980 5,063 3,523 38% General and administrative 466 273 167 70% Sales
Slide 34: Appendix B - Liquidity
Q3 | 2023 Appendix B - Liquidity 34
Slide 35: Principal Sources of Liquidity
Q3 | 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 Net Liquidity2 $2,017 $2,145 $2,087 $2,033 $1,988 $2,103 $2,020 $2,111 1 Note: Amounts shown represent the net carrying amount
Slide 36: Covenant Adjusted EBITDA
Q3 | 2023 Covenant Adjusted EBITDA ($ 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
Q3 | 2023 Covenant Adjusted EBITDA Calculation ($ in thousands, unaudited) 3 Months ended 2022 to 9/30/2023 9/30/2022 2023 YoY% Consolidated Net Loss $ (278,808) $ (301,902) -8% Add (deduct): Interest income (36,442) (12,764) 186% Interest expense 10,268 10,005 3% Other (income)/expense, net 4,262 4