Roblox Corporation · NYSE:RBLX

Roblox — Q2 2024 Earnings Presentation

48 slides from Roblox's earnings presentation, Aug 1, 2024

  1. Slide 1: Q2 2024 Supplemental Materials

    Q2 2024 Supplemental Materials August 1, 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, August 1, 2024 contain “forward-looking statementsˮ within the meaning of the “safe harborˮ provisions of the Private Securities Litigati

  3. Slide 3: Q2 2024 Results Review

    Q2 2024 Results Review 31% YoY Growth 22% YoY Growth 21% YoY Growth 24% YoY Growth $894M $955M 79.5M 17.4B REVENUE BOOKINGS1 AVERAGE DAILY HOURS ACTIVE USERS ENGAGED (“DAUsˮ) For endnote descriptions, see final slide. 3

  4. Slide 4: Q2 2024 Results Review

    Q2 2024 Results Review 433% YoY Growth $207M YoY Growth $(207)M $67M $151M $112M 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 o

  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 3% 17% 19% 16% 15% 11% 17% 13% 21% U13 13% 14% 11% 12% 17% 12% 13% 12% 15% Europe 20% 30% 24% 27% 29% 22% 20% 13% 14% 30% 34% 26% 31% 33% 25% 28% 22% 26% YoY O13 YoY APAC 71% 40% 21

  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 1% 21% 29% 21% 17% 12% 16% 12% 23% U13 6% 9% 7% 10% 13% 10% 10% 8% 16% Europe 20% 34% 28% 33% 32% 24% 21% 11% 16% YoY O13 26% 31% 28% 33% 32% 27% 28% 19% 30% YoY APAC 62% 2

  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 26% 1% 1% 19% 13% 34% 27% 20% 29% Europe 27% 2% 1% 19% 14% 39% 29% 23% 32% YoY APAC 60% 29% 22% 42% 30% 52% 39% 31% 38% ROW 47% 11% 9% 30% 23% 49% 39% 33% 42% Total 30% 2% 2% 22% 15% 38% 30% 22% 31% 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 7% 13% 19% 21% 19% 14% 21% 17% 21% Europe 10% 0% 9% 17% 30% 37% 37% 23% 24% YoY APAC 47% 21% 18% 26% 17% 15% 18% 16% 22% ROW 6% 7% 11% 41% 36% 43% 49% 35% 33% Total 4% 10% 17% 23% 22% 20% 25% 19% 22% 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 24% 29% 31% 28% 24% 24% 30% 25% 23% % of Bookings1 22% 22% 20% 24% 21% 20% 20% 22% 22% 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 18% 24% 22% 20% 19% 17% 17% 16% 14% % of Bookings1 17% 18% 14% 17% 17% 15% 11% 13% 13% 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 1900 2100 2100 2300 2400 2500 2500 2500 2400 % of Revenue 24% 31% 28% 29% 30% 27% 26% 28% 23% % of Bookings1 22% 23% 18% 24% 26% 23% 18% 25% 21% 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 $3,075 $3,022 $2,977 $3,092 $3,025 $3,116 $3,237 $3,469 $3,601 investments Net Liquidity6 $2,087 $2,033 $1,988 $2,103 $2,020 $2,111 $2,232 $2,464 $2,596 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 $83.8M $51.8M $83.8M$133.4M $157.2M $133.4M $157.2M $91.4M$91.4M $110.9M $110.9M $53.2M $53.2M $65.2M $65.2M $46.7M $39.7M — — $1.5M — $0.5M $13.0M — — Purchases of intangible —

  26. Slide 26: Shares Outstanding

    Shares Outstanding (in thousands, unaudited) As of 2023 to 6/30/2024 6/30/2023 6/30/2022 2024 YoY% Shares of Class A and B Common stock 646,611 616,301 596,622 5% outstanding Number of stock options outstandingA 35,718 46,588 55,921 23% Number of unvested RSUs outstanding 37,702 36,045 21,909 5%

  27. Slide 27: Guidance

    Guidance 27

  28. Slide 28: 3Q24 Guidance

    3Q24 Guidance(8) Summary $ in millions) 3 months ended Guidance Actual 9/30/2024 9/30/2023 YoY % Low High Low High Revenue $860.0 $885.0 $713.2 21% 24% Bookings1 $1,000.0 $1,025.0 $839.5 19% 22% Consolidated net loss $275.0 $255.0 $278.8 1% 9% Adjusted EBITDA1 $22.0 $42.0 $26.4 NM NM

  29. 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 $3,490.0 $3,540.0 $2,799.3 25% 26% Bookings1 $4,180.0 $4,230.0 $3,520.8 19% 20% Consolidated net loss $1,089.0 $1,049.0 $1,158.9 6% 9% Adjus

  30. Slide 30: 3Q24 Guidance: Revenue to Bookings Reconciliation

    3Q24 Guidance: Non-GAAP Financial Measures Reconciliation Revenue8 to Bookings1 $ in millions) 3 months ended Guidance Actual 9/30/2024 9/30/2023 YoY % Low High Low High Revenue $860.0 $885.0 $713.2 21% 24% Add (deduct): Change in deferred revenue 145.0 145.0 131.0 11% 11% Other 5.0 5.0 4.

  31. 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 $3,490.0 $3,540.0 $2,799.3 25% 26% Add (deduct): Change in deferred revenue 711.0 711.0 742

  32. Slide 32: 3Q24 Guidance: Net Loss to Adjusted EBITDA

    3Q24 Guidance: Non-GAAP Financial Measures Reconciliation Consolidated Net Loss8 to Adjusted EBITDA18 $ in millions) 3 months ended Guidance Actual 9/30/2024 9/30/2023 YoY % Low High Low High Consolidated Net Loss $275.0 $255.0 $278.8 1% 9% Add (deduct): Interest income 40.0 40.0

  33. 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 $1,089.0 $1,049.0 $1,158.9 6% 9% Add (deduct)

  34. Slide 34: 3Q24 Guidance: Operating Cash Flow to Free Cash Flow

    3Q24 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 9/30/2024 9/30/2023 YoY % Low High Low High Net cash and cash equivalents provided by operating activities $147

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

  36. Slide 36: Appendix

    Appendix RQBLOX

  37. 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

  38. 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 6/30/2024 6/30/2023 6/30/2022 2024 YoY% Revenue $ 893,543 $ 680,766 $ 591,207 31% Add (deduct): Change in deferred revenue 66,728 105,372 52,140 37% Other 5,093 5,452 3,445 7%

  39. 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 6/30/2024 6/30/2023 6/30/2022 2024 YoY% Consolidated Net Loss $ 207,195 $ 284,841 $ 178,734 27% Add (deduct): Interest income 44,383 34,764 4,197 28%

  40. 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 6/30/2024 6/30/2023 6/30/2022 2024 YoY% Net cash and cash equivalents provided by operating activities $ 151,449 $ 28,390

  41. Slide 41: Personnel Costs excl. Stock-Based Compensation by Department

    Personnel Costs excl. Stock-Based Compensation by Department $ in thousands, unaudited) 3 months ended 2023 to 6/30/2024 6/30/2023 6/30/2022 2024 YoY% Infrastructure and trust & safety $ 25,810 $ 23,991 $ 14,034 8% Research and development 137,273 136,547 96,645 1% General and administrative 30,256

  42. Slide 42: Depreciation and Amortization Expense by Department

    Depreciation and Amortization Expense by Department $ in thousands, unaudited) 3 months ended 2023 to 6/30/2024 6/30/2023 6/30/2022 2024 YoY% Infrastructure and trust & safety $ 45,382 $ 45,840 $ 23,784 1% Research and development 6,848 6,271 4,881 9% General and administrative 388 415 266 7% Sal

  43. Slide 43: Stock-Based Compensation Expense by Department

    Stock-Based Compensation Expense by Department $ in thousands, unaudited) 3 months ended 2023 to 6/30/2024 6/30/2023 6/30/2022 2024 YoY% Infrastructure and trust & safety $ 27,973 $ 22,695 $ 13,655 23% Research and development 180,556 147,768 93,714 22% General and administrative 34,796 34,823 32,9

  44. 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

  45. 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

  46. 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

  47. 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

  48. Slide 48: 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

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