Roblox Corporation · NYSE:RBLX

Roblox — Q3 2024 Earnings Presentation

50 slides from Roblox's earnings presentation, Oct 31, 2024

1. Slide 1: Q3 2024 Supplemental Materials

   Q3 2024 Supplemental Materials October 31, 2024

2. 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, October 31, 2024 contain “forward-looking statementsˮ within the meaning of the “safe harborˮ provisions of the Private Securities Litiga

3. Slide 3: Q3 2024 Results Review

   Q3 2024 Results Review 29% YoY Growth 34% YoY Growth 27% YoY Growth 29% YoY Growth $919M $1,129M 88.9M 20.7B REVENUE BOOKINGS1 AVERAGE DAILY HOURS ACTIVE USERS ENGAGED (“DAUsˮ) For endnote descriptions, see final slide. 3

4. Slide 4: Q3 2024 Results Review

   Q3 2024 Results Review 120% YoY Growth 266% YoY Growth $(240)M $55M $247M $218M 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

5. Slide 5: Operating and Financial Metrics Discussion

   Operating and Financial Metrics Discussion 5

6. Slide 6: DAUs

   DAUs (in millions) Year over year growth % 6

7. 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 17% 19% 16% 15% 11% 17% 13% 21% 26% U13 14% 11% 12% 17% 12% 13% 12% 15% 16% Europe 30% 24% 27% 29% 22% 20% 13% 14% 15% YoY O13 34% 26% 31% 33% 25% 28% 22% 26% 34% YoY APAC 40% 21% 1

8. Slide 8: Hours Engaged

   Hours Engaged (in billions) Year over year growth % 8

9. 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 21% 29% 21% 17% 12% 16% 12% 23% 28% U13 9% 7% 10% 13% 10% 10% 8% 16% 17% Europe 34% 28% 33% 32% 24% 21% 11% 16% 17% YoY O13 31% 28% 33% 32% 27% 28% 19% 30% 37% YoY APAC 20%

10. Slide 10: Revenue

    Revenue(3) $ in millions, unaudited) Year over year growth % For endnote descriptions, see final slide. 10

11. Slide 11: Revenue by Region

    Revenue by Region(3)(4) $ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 1% 1% 19% 13% 34% 27% 20% 29% 27% Europe 2% 1% 19% 14% 39% 29% 23% 32% 31% YoY APAC 29% 22% 42% 30% 52% 39% 31% 38% 29% ROW 11% 9% 30% 23% 49% 39% 33% 42% 38% Total 2% 2% 22% 15% 38% 30% 22% 31% 29% For en

12. Slide 12: Bookings

    Bookings(1) $ in millions, unaudited) Year over year growth % For endnote descriptions, see final slide. 12

13. Slide 13: Bookings by Region

    Bookings by Region(1)(4) $ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 13% 19% 21% 19% 14% 21% 17% 21% 33% Europe 0% 9% 17% 30% 37% 37% 23% 24% 36% YoY APAC 21% 18% 26% 17% 15% 18% 16% 22% 36% ROW 7% 11% 41% 36% 43% 49% 35% 33% 37% Total 10% 17% 23% 22% 20% 25% 19% 22% 34% For

14. Slide 14: Average Bookings per DAU (ABPDAU)

    Average Bookings per DAU (“ABPDAU”)(1) Year over year growth % For endnote descriptions, see final slide. 14

15. 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

16. 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

17. Slide 17: Four Main Expenses

    Four Main Expenses 17

18. Slide 18: Cost of Revenue

    Cost of Revenue(3) $ in millions, unaudited) Year over year growth % For endnote descriptions, see final slide. 18

19. Slide 19: Developer Exchange Fees

    Developer Exchange Fees $ in millions, unaudited) Year over year growth % % of Revenue 29% 31% 28% 24% 24% 30% 25% 23% 25% % of Bookings1 22% 20% 24% 21% 20% 20% 22% 22% 21% For endnote descriptions, see final slide. 19

20. Slide 20: Certain Infrastructure and Trust & Safety Expense

    Certain Infrastructure and Trust & Safety Expense(5) $ in millions, unaudited) Year over year growth % % of Revenue 24% 22% 20% 19% 17% 17% 16% 14% 14% % of Bookings1 18% 14% 17% 17% 15% 11% 13% 13% 11% For endnote descriptions, see final slide. 20

21. Slide 21: Personnel Costs excl. Stock-Based Compensation

    Personnel Costs excl. Stock-Based Compensation $ in millions, unaudited) Year over year growth % Headcount 2100 2100 2300 2400 2500 2500 2500 2400 2400 % of Revenue 31% 28% 29% 30% 27% 26% 28% 23% 22% % of Bookings1 23% 18% 24% 26% 23% 18% 25% 21% 18% For endnote descriptions, see final

22. Slide 22: Liquidity, Cash Flow, & Shares Outstanding

    Liquidity, Cash Flow, & Shares Outstanding 22

23. Slide 23: Principal Sources of Liquidity

    Principal Sources of Liquidity $ in millions, unaudited) 7 Total cash, cash equivalents, and $3,022 $2,977 $3,092 $3,025 $3,116 $3,237 $3,469 $3,601 $3,882 investments Net Liquidity6 $2,033 $1,988 $2,103 $2,020 $2,111 $2,232 $2,464 $2,596 $2,876 For endnote descriptions, see final slide. 23

24. Slide 24: Net Cash and Cash Equivalents Provided by Operating Activities

    Net Cash and Cash Equivalents Provided by Operating Activities $ in millions, unaudited) 24

25. Slide 25: Free Cash Flow

    Free Cash Flow(1) $ in millions, unaudited) Acquisition of property and equipment $133.4M $157.2M $91.4M $110.9M $53.2M $65.2M $46.7M $39.7M $29.4M Purchases of intangible $1.5M — $0.5M $13.0M — — $1.2M $0.2M — assets For endnote descriptions, see final slide. 25

26. Slide 26: Shares Outstanding

    Shares Outstanding (in thousands, unaudited) As of 2023 to 9/30/2024 9/30/2023 9/30/2022 2024 YoY% Shares of Class A and B Common stock 656,132 623,588 600,641 5% outstanding Number of stock options outstandingA 32,160 43,306 53,412 26% Number of unvested RSUs outstanding 36,467 36,880 30,731 1%

27. Slide 27: Guidance

    Guidance 27

28. Slide 28: Revenue Guidance Comparison

    Revenue(3) Guidance Comparison $ in millions, unaudited) 3Q24 4Q24 FY2024 24% 4% 29% 28% 28% 26% 1% 28% Flat YoY Growth Beat YoY Growth YoY Growth YoY Growth YoY Growth Increase YoY Growth For endnote descriptions, see final slide. 28 Note: Previous guidance refers to the 3Q24 and updated fiscal

29. Slide 29: Bookings Guidance Comparison

    Bookings(1) Guidance Comparison $ in millions, unaudited) 3Q24 4Q24 FY2024 22% 10% 34% 18% 3% 21% 20% 3% 24% YoY Growth Beat YoY Growth YoY Growth Increase YoY Growth YoY Growth Increase YoY Growth For endnote descriptions, see final slide. 29 Note: Previous guidance refers to the 3Q24 and updat

30. Slide 30: 4Q24 Guidance

    4Q24 Guidance(8) Summary $ in millions) 3 months ended Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Revenue $935.0 $960.0 $749.9 25% 28% Bookings1 $1,336.0 $1,361.0 $1,126.8 19% 21% Consolidated net loss $303.0 $283.0 $325.3 7% 13% Adjusted EBITDA1 $10.0 $30.0 $44.8 N

31. Slide 31: 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 $3,548.8 $3,573.8 $2,799.3 27% 28% Bookings1 $4,343.5 $4,368.5 $3,520.8 23% 24% Consolidated net loss $1,022.6 $1,002.6 $1,158.9 12% 13% Adj

32. Slide 32: 4Q24 Guidance: Revenue to Bookings Reconciliation

    4Q24 Guidance: Non-GAAP Financial Measures Reconciliation Revenue8 to Bookings1 $ in millions) 3 months ended Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Revenue $935.0 $960.0 $749.9 25% 28% Add (deduct): Change in deferred revenue 406.0 406.0 382.2 6% 6% Other 5.0 5.0 5.

33. Slide 33: Updated Fiscal Year Guidance: Revenue to Bookings Reconciliation

    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 $3,548.8 $3,573.8 $2,799.3 27% 28% Add (deduct): Change in deferred revenue 816.7 816.7 742

34. Slide 34: 4Q24 Guidance: Net Loss to Adjusted EBITDA

    4Q24 Guidance: Non-GAAP Financial Measures Reconciliation Consolidated Net Loss8 to Adjusted EBITDA18 $ in millions) 3 months ended Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Consolidated Net Loss $303.0 $283.0 $325.3 7% 13% Add (deduct): Interest income 40.0 40.

35. Slide 35: 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 $1,022.6 $1,002.6 $1,158.9 12% 13% Add (deduc

36. Slide 36: 4Q24 Guidance: Operating Cash Flow to Free Cash Flow

    4Q24 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 12/31/2024 12/31/2023 YoY % Low High Low High Net cash and cash equivalents provided by operating activities $1

37. Slide 37: 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 Updated Guidance Actual 12/31/2024 12/31/2023 YoY % Low High Low High Net cash and cash equivalents provided by

38. Slide 38: Appendix

    Appendix RQBLOX

39. Slide 39: 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. ● Paying 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 Rob

40. Slide 40: Non-GAAP Reconciliation: Revenue to Bookings

    Non-GAAP Financial Measures Reconciliation Revenue to Bookings1 $ in thousands, unaudited) 3 months ended 2023 to 9/30/2024 9/30/2023 9/30/2022 2024 YoY% Revenue $ 918,953 $ 713,225 $ 517,707 29% Add (deduct): Change in deferred revenue 216,325 130,957 187,991 65% Other 6,758 4,729 3,982 43

41. Slide 41: 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 9/30/2024 9/30/2023 9/30/2022 2024 YoY% Consolidated Net Loss $ 240,447 $ 278,808 $ 301,902 14% Add (deduct): Interest income 46,718 36,442 12,764 28

42. Slide 42: 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 9/30/2024 9/30/2023 9/30/2022 2024 YoY% Net cash and cash equivalents provided by operating activities $ 247,430 $ 112,704

43. Slide 43: Personnel Costs excl. Stock-Based Compensation by Department

    Personnel Costs excl. Stock-Based Compensation by Department $ in thousands, unaudited) 3 months ended 2023 to 9/30/2024 9/30/2023 9/30/2022 2024 YoY% Infrastructure and trust & safety $ 24,694 $ 23,888 $ 21,060 3% Research and development 137,121 128,604 101,859 7% General and administrative 28,24

44. Slide 44: Depreciation and Amortization Expense by Department

    Depreciation and Amortization Expense by Department $ in thousands, unaudited) 3 months ended 2023 to 9/30/2024 9/30/2023 9/30/2022 2024 YoY% Infrastructure and trust & safetyA $ 61,284 $ 46,014 $ 28,665 33% Research and development 6,651 6,980 5,063 5% General and administrative 508 466 273 9%

45. Slide 45: Stock-Based Compensation Expense by Department

    Stock-Based Compensation Expense by Department $ in thousands, unaudited) 3 months ended 2023 to 9/30/2024 9/30/2023 9/30/2022 2024 YoY% Infrastructure and trust & safety $ 29,078 $ 24,483 $ 14,948 19% Research and development 189,064 155,651 111,450 21% General and administrative 36,345 32,200 28,

46. Slide 46: 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

47. Slide 47: 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

48. Slide 48: 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

49. Slide 49: 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

50. Slide 50: Endnotes

    Endnotes Note: Amounts reported in millions are rounded based on the amounts in thousands. As a result, 3 In 1Q22, the estimated average lifetime of a payer changed from 23 months to 25 the sum of the components reported in millions may not equal the total amount reported in millions months and su

Roblox — Q3 2024 Earnings Presentation on 6ix