Roblox Corporation · NYSE:RBLX
Roblox — Q1 2024 Earnings Presentation
48 slides from Roblox's earnings presentation, May 9, 2024
Slide 1: Q1 2024 Supplemental Materials
Q1 2024 Supplemental Materials May 9, 2024
Slide 2: Forward-Looking Statements
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 Thursday, May 9, 2024 contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation
Slide 3: Q1 2024 Results Review
Q1 2024 Results Review 22% YoY Growth 19% YoY Growth 17% YoY Growth 15% YoY Growth $801M $924M 77.7M 16.7B REVENUE BOOKINGS(1) AVERAGE DAILY HOURS ACTIVE USERS ENGAGED For endnote descriptions, see final slide. 3
Slide 4: Q1 2024 Results Review
Q1 2024 Results Review 37% YoY Growth 133% YoY Growth $(272)M $(7)M $239M $191M CONSOLIDATED ADJUSTED NET CASH AND CASH FREE CASH FLOW(1) NET LOSS EBITDA(A)(1) EQUIVALENTS PROVIDED BY OPERATING ACTIVITIES (A) Adjusted EBITDA excludes adjustments for increases in deferred revenue and deferred cost of
Slide 5: Operating and Financial Metrics Discussion
Operating and Financial Metrics Discussion 5
Slide 6: Average Daily Active Users (DAUs)
Average Daily Active Users (DAUs) (in millions) Year over year growth % 6
Slide 7: DAUs by Region and Age
DAUs by Region and Age(2) (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 13O Unknown US & Canada -2% 3% 17% 19% 16% 15% 11% 17% 13% U13 20% 13% 14% 11% 12% 17% 12% 13% 12% Europe 20% 20% 30% 24% 27% 29% 22% 20% 13% YoY O13 38% 30% 34% 26% 31% 33% 25% 28% 22% YoY APAC 94% 71% 40
Slide 8: Hours Engaged
Hours Engaged (in billions) Year over year growth % 8
Slide 9: Hours Engaged by Region and Age
Hours Engaged by Region and Age(2) (in billions) By Region By Age Group US & Canada Europe APAC ROW U13 13O Unknown US & Canada -10% 1% 21% 29% 21% 17% 12% 16% 12% U13 12% 6% 9% 7% 10% 13% 10% 10% 8% Europe 12% 20% 34% 28% 33% 32% 24% 21% 11% YoY O13 33% 26% 31% 28% 33% 32% 27% 28% 19% YoY APAC 104%
Slide 10: Revenue
Revenue(3) ($ in millions, unaudited) Year over year growth % For endnote descriptions, see final slide. 10
Slide 11: Revenue by Region
Revenue by Region(3)(4) ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 35% 26% -1% -1% 19% 13% 34% 27% 20% Europe 37% 27% -2% -1% 19% 14% 39% 29% 23% YoY APAC 62% 60% 29% 22% 42% 30% 52% 39% 31% ROW 64% 47% 11% 9% 30% 23% 49% 39% 33% Total 39% 30% 2% 2% 22% 15% 38% 30% 22% For en
Slide 12: Bookings
Bookings(1) ($ in millions, unaudited) Year over year growth % For endnote descriptions, see final slide. 12
Slide 13: Bookings by Region
Bookings by Region(1)(4) ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada -11% -7% 13% 19% 21% 19% 14% 21% 17% Europe -6% -10% 0% 9% 17% 30% 37% 37% 23% YoY APAC 62% 47% 21% 18% 26% 17% 15% 18% 16% ROW 13% -6% -7% 11% 41% 36% 43% 49% 35% Total -3% -4% 10% 17% 23% 22% 20% 25% 19% Fo
Slide 14: Average Bookings per DAU (ABPDAU)
Average Bookings per DAU (“ABPDAU”)(1) Year over year growth % For endnote descriptions, see final slide. 14
Slide 15: ABPDAUs by Region
ABPDAUs by Region(1)(2)(4) Year over year growth % US & Canada Europe APAC ROW For endnote descriptions, see final slide. 15
Slide 16: Payer Community
Payer Community New & Returning Monthly Unique Payers (in millions) Average Bookings Per Monthly Unique Payer(1) For endnote descriptions, see final slide. 16
Slide 17: Four Main Expenses
Four Main Expenses 17
Slide 18: Cost of Revenue
Cost of Revenue(3) ($ in millions, unaudited) Year over year growth % For endnote descriptions, see final slide. 18
Slide 19: Developer Exchange Fees
Developer Exchange Fees ($ in millions, unaudited) Year over year growth % % of Revenue 27% 24% 29% 31% 28% 24% 24% 30% 25% % of Bookings(1) 23% 22% 22% 20% 24% 21% 20% 20% 22% For endnote descriptions, see final slide. 19
Slide 20: Certain Infrastructure and Trust & Safety Expense
Certain Infrastructure and Trust & Safety Expense(5) ($ in millions, unaudited) Year over year growth % % of Revenue 18% 18% 24% 22% 20% 19% 17% 17% 16% % of Bookings(1) 16% 17% 18% 14% 17% 17% 15% 11% 13% For endnote descriptions, see final slide. 20
Slide 21: Personnel Costs excl. Stock-Based Compensation
Personnel Costs excl. Stock-Based Compensation ($ in millions, unaudited) Year over year growth % Headcount ~1700 ~1900 ~2100 ~2100 ~2300 ~2400 ~2500 ~2500 ~2500 % of Revenue 24% 24% 31% 28% 29% 30% 27% 26% 28% % of Bookings(1) 20% 22% 23% 18% 24% 26% 23% 18% 25% For endnote descriptions, see final
Slide 22: Liquidity, Cash Flow, & Shares Outstanding
Liquidity, Cash Flow, & Shares Outstanding 22
Slide 23: Principal Sources of Liquidity
Principal Sources of Liquidity ($ in millions, unaudited) (7) Total cash, cash equivalents, and $3,133 $3,075 $3,022 $2,977 $3,092 $3,025 $3,116 $3,237 $3,469 investments Net Liquidity(6) $2,145 $2,087 $2,033 $1,988 $2,103 $2,020 $2,111 $2,232 $2,464 For endnote descriptions, see final slide. 23
Slide 24: Net Cash and Cash Equivalents Provided by Operating Activities
Net Cash and Cash Equivalents Provided by Operating Activities ($ in millions, unaudited) 24
Slide 25: Free Cash Flow
Free Cash Flow(1) ($ in millions, unaudited) Acquisition of property and equipment $(51.8M) $(51.8M) $(83.8M)$(83.8M) $(133.4M) $(133.4M) $(157.2M) $(157.2M) $(91.4M) $(110.9M) $(91.4M) $(53.2M) $(110.9M) $(65.2M) $(53.2M) $(65.2M) $(46.7M) — — $(1.5M) — $(0.5M) $(13.0M) — — Purchases of intangible
Slide 26: Shares Outstanding
Shares Outstanding (in thousands, unaudited) As of 2023 to 3/31/2024 3/31/2023 3/31/2022 2024 YoY% Shares of Class A and B Common stock 639,734 610,487 592,196 5% outstanding Number of stock options outstanding(A) 37,488 49,148 58,685 (24)% Number of unvested RSUs outstanding 38,757 33,956 14,489 14
Slide 27: Guidance
Guidance 27
Slide 28: 2Q24 Guidance
2Q24 Guidance(8) Summary ($ in millions) 3 months ended Guidance Actual 6/30/2024 6/30/2023 YoY % Low High Low High Revenue $855.0 $880.0 $680.8 26% 29% Bookings(1) $870.0 $900.0 $780.7 11% 15% Consolidated net loss $(267.0) $(265.0) $(284.8) (6)% (7)% Adjusted EBITDA(1) $36.0 $38.0 $(49.0) NM NM In
Slide 29: Updated Fiscal Year Guidance
Updated Fiscal Year Guidance(8) Summary ($ in millions) 12 months ended Updated Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Revenue $3,450.0 $3,525.0 $2,799.3 23% 26% Bookings(1) $4,000.0 $4,100.0 $3,520.8 14% 16% Consolidated net loss $(1,096.0) $(1,044.0) $(1,158.9) (5)% (10)% Ad
Slide 30: 2Q24 Guidance: Revenue to Bookings Reconciliation
2Q24 Guidance: Non-GAAP Financial Measures Reconciliation Revenue(8) to Bookings(1) ($ in millions) 3 months ended Guidance Actual 6/30/2024 6/30/2023 YoY % Low High Low High Revenue $855.0 $880.0 $680.8 26% 29% Add (deduct): Change in deferred revenue 18.0 23.0 105.4 (83)% (78)% Other (3.0) (3.0) (
Slide 31: Updated Fiscal Year Guidance: Revenue to Bookings
Updated Fiscal Year Guidance: Non-GAAP Financial Measures Reconciliation Revenue(8) to Bookings(1) ($ in millions) 12 months ended Updated Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Revenue $3,450.0 $3,525.0 $2,799.3 23% 26% Add (deduct): Change in deferred revenue 568.0 593.0 742
Slide 32: 2Q24 Guidance: Net Loss to Adjusted EBITDA
2Q24 Guidance: Non-GAAP Financial Measures Reconciliation Consolidated Net Loss(8) to Adjusted EBITDA(1)(8) ($ in millions) 3 months ended Guidance Actual 6/30/2024 6/30/2023 YoY % Low High Low High Consolidated Net Loss $(267.0) $(265.0) $(284.8) (6)% (7)% Add (deduct): Interest income (38.0) (38.0
Slide 33: Updated Fiscal Year Guidance: Net Loss to Adjusted EBITDA
Updated Fiscal Year Guidance: Non-GAAP Financial Measures Reconciliation Consolidated Net Loss(8) to Adjusted EBITDA(1)(8) ($ in millions) 12 months ended Updated Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Consolidated Net Loss $(1,096.0) $(1,044.0) $(1,158.9) (5)% (10)% Add (dedu
Slide 34: 2Q24 Guidance: Operating Cash Flow to Free Cash Flow
2Q24 Guidance: Non-GAAP Financial Measures Reconciliation Net Cash and Cash Equivalents Provided by Operating Activities to Free Cash Flow(1) ($ in millions) 3 months ended Guidance Actual 6/30/2024 6/30/2023 YoY % Low High Low High Net cash and cash equivalents provided by operating activities $61.
Slide 35: Updated Fiscal Year Guidance: Operating Cash Flow to Free Cash Flow
Updated Fiscal Year Guidance: Non-GAAP Financial Measures Reconciliation Net Cash and Cash Equivalents Provided by Operating Activities to Free Cash Flow(1) ($ in millions) 12 months ended Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Net cash and cash equivalents provided by operati
Slide 36: Appendix
Appendix RQBLOX
Slide 37: Revenue, Deferred Revenue, and Bookings Illustration
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 $30 prepaid card to exchange for 3,000 Robux Book
Slide 38: Non-GAAP Reconciliation: Revenue to Bookings
Non-GAAP Financial Measures Reconciliation Revenue to Bookings(1) ($ in thousands, unaudited) 3 months ended 2023 to 3/31/2024 3/31/2023 3/31/2022 2024 YoY% Revenue $ 801,300 $ 655,344 $ 537,134 22% Add (deduct): Change in deferred revenue 127,604 123,783 96,797 3% Other (5,147) (5,308) (2,725) (3)%
Slide 39: Non-GAAP Reconciliation: Net Loss to Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation Consolidated Net Loss to Adjusted EBITDA(1) ($ in thousands, unaudited) 3 months ended 2023 to 3/31/2024 3/31/2023 3/31/2022 2024 YoY% Consolidated Net Loss $ (271,920) $ (269,948) $ (162,020) 1% Add (deduct): Interest income (42,170) (31,082) (245) 36% Int
Slide 40: Non-GAAP Reconciliation: Operating Cash Flow to Free Cash Flow
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 2023 to 3/31/2024 3/31/2023 3/31/2022 2024 YoY% Net cash and cash equivalents provided by operating activities $ 238,946 $ 173,781
Slide 41: Personnel Costs excl. SBC by Department
Personnel Costs excl. Stock-Based Compensation by Department ($ in thousands, unaudited) 3 months ended 2023 to 3/31/2024 3/31/2023 3/31/2022 2024 YoY% Infrastructure and trust & safety $ 29,100 $ 21,636 $ 12,431 34% Research and development 149,638 123,214 86,977 21% General and administrative 33,9
Slide 42: Depreciation and Amortization Expense by Department
Depreciation and Amortization Expense by Department ($ in thousands, unaudited) 3 months ended 2023 to 3/31/2024 3/31/2023 3/31/2022 2024 YoY% Infrastructure and trust & safety $ 46,191 $ 41,014 $ 19,582 13% Research and development 7,055 5,963 4,616 18% General and administrative 345 376 226 -8% Sa
Slide 43: Stock-Based Compensation Expense by Department
Stock-Based Compensation Expense by Department ($ in thousands, unaudited) 3 months ended 2023 to 3/31/2024 3/31/2023 3/31/2022 2024 YoY% Infrastructure and trust & safety $ 27,275 $ 18,532 $ 11,356 47% Research and development 173,247 129,257 74,814 34% General and administrative 31,645 30,650 20,7
Slide 44: Non-GAAP Financial Measures Definitions
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-G
Slide 45: Note Regarding Operating Metrics
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 measured by u
Slide 46: Note Regarding Operating Metrics (continued)
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 us
Slide 47: Note Regarding Operating Metrics (continued)
Note Regarding Operating Metrics (continued) Monthly repurchase rate 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 f
Slide 48: Endnotes
Endnotes (1) Bookings, Adjusted EBITDA, and Free Cash Flow are non-GAAP financial measures that (5) Infrastructure and Trust & Safety expenses, excluding personnel, stock-based we believe are useful in evaluating our performance and are presented for supplemental compensation, and depreciation and a