Slide 1: Q1 2023 Supplemental Materials
Q1 | 2023 Q1 2023 Supplemental Materials May 10, 2023 1
Slide 2: Forward-Looking Statements
Q1 | 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, May 10, 2023 contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities
Slide 3: Non-GAAP Financial Measures
Q1 | 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
Q1 | 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)
Q1 | 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
Q1 | 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 $30 prepaid card to exchange for 3,000
Slide 7: Revenue
Q1 | 2023 Revenue ($ 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
Q1 | 2023 Revenue by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 135% 121% 99% 79% 35% 26% -1% -1% 19% Europe 155% 136% 104% 84% 37% 27% -2% -1% 19% YoY APAC 123% 117% 97% 98% 62% 60% 29% 22% 42% ROW 176% 187% 152% 119% 64% 47% 11% 9% 30% Total 140% 127% 102% 83% 39% 30
Slide 9: Four Main Expense Buckets
Q1 | 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
Q1 | 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
Q1 | 2023 Developer Exchange Fees ($ in millions, unaudited) Year over year growth % % of Revenue % of Bookings1 1 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
Slide 12: Personnel Costs excl. Stock-Based Compensation
Q1 | 2023 Personnel Costs excl. Stock-Based Compensation ($ in millions, unaudited) Year over year growth % (1) Headcount % of Revenue % of Bookings2 1 1Q21 expenses includes roughly $13.0 million in employer taxes associated with transactions performed in connection with our Direct Listing. Excludi
Slide 13: Certain Infrastructure and Trust & Safety
Q1 | 2023 Certain Infrastructure and Trust & Safety1 ($ in millions, unaudited) Year over year growth % % of Revenue % of Bookings2 1 Infrastructure and Trust & Safety excluding personnel, stock-based compensation, and depreciation expense. 2 Bookings is a non-GAAP financial measure that we believe
Slide 14: Net Loss
Q1 | 2023 Net Loss ($ in thousands, unaudited) 3 Months ended 3/31/2023 3/31/2022 Revenue $655,344 $537,134 Cost of revenue1 151,841 135,632 Developer exchange fees 182,440 147,122 Infrastructure and trust & safety 211,044 141,355 Research and development 275,537 177,762 General and administrative 9
Slide 15: Non-GAAP Financial and Operating Metrics Discussion
Q1 | 2023 Non-GAAP Financial and Operating Metrics Discussion 15
Slide 16: Non-GAAP Financial Measures Reconciliation
Q1 | 2023 Non-GAAP Financial Measures Reconciliation Revenue to Bookings 3 Months ended 2022 to ($ in thousands, unaudited) 3/31/2023 3/31/2022 3/31/2021 2023 YoY% Revenue $ 655,344 $ 537,134 $ 386,976 22% Add (deduct): Change in deferred revenue 123,783 96,797 269,439 28% Other (5,308) (2,725) (4,1
Slide 17: Bookings
Q1 | 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
Q1 | 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 $182.3 m
Slide 19: Non-GAAP Financial Measures Reconciliation
Q1 | 2023 Non-GAAP Financial Measures Reconciliation Operating Cash Flow to Free Cash Flow 3 Months ended 2022 to ($ in thousands, unaudited) 3/31/2023 3/31/2022 3/31/2021 2023 YoY% Net cash provided by operating activities $ 173,781 $ 156,436 $ 164,469 11% Add (deduct): Acquisition of property and
Slide 20: Free Cash Flow
Q1 | 2023 Free Cash Flow ($ in millions, unaudited) (1) (1) Acquisition of property and equipment Purchases of intangible assets Note: We define free cash flow as net cash provided by operating activities less purchases of property and equipment and intangible assets acquired through asset acquisiti
Slide 21: Daily Active Users (DAUs)
Q1 | 2023 Daily Active Users (DAUs) (in millions) Year over year growth % 21
Slide 22: DAUs by Region and Age
Q1 | 2023 DAUs by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 36% 90% 70% 78% 62% 5% 6% -1% -2% 3% 17% 19% 16% U13 47% 80% 79% 78% 60% 20% 20% 21% 20% 13% 14% 11% 12% Europe 52% 106% 113% 97% 79% 19% 15% 23% 20% 20% 30% 24% 27% O13 53%
Slide 23: Hours Engaged
Q1 | 2023 Hours Engaged (in millions) Year over year growth % 23
Slide 24: Hours Engaged by Region and Age
Q1 | 2023 Hours Engaged by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 53% 171% 107% 122% 88% -9% 0% -11% -10% 1% 21% 29% 21% U13 62% 154% 122% 115% 81% 3% 15% 14% 12% 6% 9% 7% 10% Europe 65% 178% 135% 117% 95% -2% 12% 20% 12% 20% 34% 2
Slide 25: Bookings by Region
Q1 | 2023 Bookings by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 160% 28% 23% 16% -11% -7% 13% 19% 21% Europe 173% 36% 21% 14% -6% -10% 0% 9% 17% YoY APAC 114% 42% 61% 63% 62% 46% 21% 18% 26% ROW 217% 118% 67% 24% 13% -6% -7% 11% 41% Total 161% 35% 28% 20% -3% -4% 10%
Slide 26: Average Bookings per DAU
Q1 | 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
Q1 | 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
Q1 | 2023 Payer Community New & Returning Monthly Unique Payers (in millions) Average Bookings Per Monthly Unique Payer 28
Slide 29: Appendix A
Q1| 2023 Appendix A RQBLOX 29
Slide 30: Stock-Based Compensation Expense by Department
Q1 | 2023 Stock-Based Compensation Expense by Department ($ in thousands, unaudited) 3 Months ended 2022 to 3/31/2023 3/31/2022 3/31/2021 2023 YoY% Infrastructure and trust & safety 18,532 11,356 5,688 63% Research and development 129,257 74,814 31,594 73% General and administrative 30,650 20,795 11
Slide 31: Shares Outstanding
Q1 | 2023 Shares Outstanding (in thousands, unaudited) As of 2022 to 3/31/2023 3/31/2022 3/31/2021 2023 YoY% Shares of Class A and B Common stock 610,487 592,196 568,894 3% outstanding Number of stock options outstanding1 49,148 58,685 79,616 -16% Number of unvested RSUs outstanding 33,956 14,489 8,
Slide 32: Personnel Costs excl. Stock-Based Compensation by Department
Q1 | 2023 Personnel Costs excl. Stock-Based Compensation by Department ($ in thousands, unaudited) 3 Months ended 2022 to 3/31/2023 3/31/2022 3/31/2021 2023 YoY% Infrastructure and trust & safety 21,636 12,431 10,711 74% Research and development 123,214 86,977 56,076 42% General and administrative 3
Slide 33: Depreciation and Amortization by Department
Q1 | 2023 Depreciation and Amortization by Department ($ in thousands, unaudited) 3 Months ended 2022 to 3/31/2023 3/31/2022 3/31/2021 2023 YoY% Infrastructure and trust & safety 41,014 19,582 13,694 109% Research and development 5,963 4,616 2,640 29% General and administrative 376 226 211 66% Sales
Slide 34: Appendix B - Liquidity
Q1 | 2023 Appendix B - Liquidity 34
Slide 35: Principal Sources of Liquidity
Q1 | 2023 Principal Sources of Liquidity ($ in millions, unaudited) (1) Total cash, cash equivalents, $3,004 $3,133 $3,075 $3,022 $2,977 $3,092 and investments Net Liquidity2 $2,017 $2,145 $2,087 $2,033 $1,988 $2,103 1 Note: Amounts shown represent the net carrying amount of the senior notes due 203
Slide 36: Covenant Adjusted EBITDA
Q1 | 2023 Covenant Adjusted EBITDA ($ 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
Q1 | 2023 Covenant Adjusted EBITDA Calculation 3 Months ended 2022 to ($ in thousands, unaudited) 3/31/2023 3/31/2022 2023 YoY% Consolidated Net Loss $ (269,948) $ (162,020) 67% Add (deduct): Interest income (31,082) (245) NM Interest expense 10,012 9,999 0% Other (income)/expense, net 440 379 16% P