Slide 1: Q2 2023 Supplemental Materials
Q2 | 2023 Q2 2023 Supplemental Materials August 9, 2023 1
Slide 2: Forward-Looking Statements
Q2 | 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, August 9, 2023 contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securiti
Slide 3: Non-GAAP Financial Measures
Q2 | 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
Q2 | 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)
Q2 | 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
Q2 | 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 $30 prepaid card to exchange for 3,000
Slide 7: Revenue
Q2 | 2023 Revenue ($ 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
Q2 | 2023 Revenue by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 121% 99% 79% 35% 26% -1% -1% 19% 13% Europe 136% 104% 84% 37% 27% -2% -1% 19% 14% YoY APAC 117% 97% 98% 62% 60% 29% 22% 42% 30% ROW 187% 152% 119% 64% 47% 11% 9% 30% 23% Total 127% 102% 83% 39% 30% 2% 2% 2
Slide 9: Four Main Expense Buckets
Q2 | 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
Q2 | 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
Q2 | 2023 Developer Exchange Fees ($ in millions, unaudited) Year over year growth % % of Revenue 42% 34% 37% 31% 29% 26% 28% 27% 24% 29% 31% 28% 24% % of Bookings1 17% 17% 18% 18% 19% 20% 21% 23% 22% 22% 20% 24% 21% 1 Bookings is a non-GAAP financial measure that we believe is useful in evaluating
Slide 12: Personnel Costs excl. Stock-Based Compensation
Q2 | 2023 Personnel Costs excl. Stock-Based Compensation ($ in millions, unaudited) Year over year growth % (1) Headcount ~800 ~900 ~1000 ~1200 ~1300 ~1500 ~1600 ~1700 ~1900 ~2100 ~2100 ~2300 ~2400 % of Revenue 25% 22% 22% 23% 21% 20% 21% 24% 24% 31% 28% 29% 30% 2 % of Bookings 10% 11% 10% 14% 14% 1
Slide 13: Certain Infrastructure and Trust & Safety
Q2 | 2023 Certain Infrastructure and Trust & Safety1 ($ in millions, unaudited) Year over year growth % % of Revenue 22% 21% 18% 17% 17% 16% 16% 18% 18% 24% 22% 20% 19% % of Bookings2 9% 10% 9% 10% 11% 13% 12% 16% 17% 18% 14% 17% 17% 1 Infrastructure and Trust & Safety excluding personnel, stock-bas
Slide 14: Statements of Operations
Q2 | 2023 Statements of Operations ($ in thousands, unaudited) 3 Months ended 6/30/2023 6/30/2022 Revenue $680,766 $591,207 1 Cost of revenue 162,029 143,157 Developer exchange fees 165,843 143,148 Infrastructure and trust & safety 225,039 158,235 Research and development 315,319 211,757 General and
Slide 15: Non-GAAP Financial and Operating Metrics Discussion
Q2 | 2023 Non-GAAP Financial and Operating Metrics Discussion 15
Slide 16: Non-GAAP Financial Measures Reconciliation
Q2 | 2023 Non-GAAP Financial Measures Reconciliation Revenue to Bookings 3 Months ended 2022 to ($ in thousands, unaudited) 6/30/2023 6/30/2022 6/30/2021 2023 YoY% Revenue $ 680,766 $ 591,207 $ 454,100 15% Add (deduct): Change in deferred revenue 105,372 52,140 215,497 102% Other (5,452) (3,445) (4,
Slide 17: Bookings
Q2 | 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
Q2 | 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 $182.3 m
Slide 19: Non-GAAP Financial Measures Reconciliation
Q2 | 2023 Non-GAAP Financial Measures Reconciliation Operating Cash Flow to Free Cash Flow 3 Months ended 2022 to ($ in thousands, unaudited) 6/30/2023 6/30/2022 6/30/2021 2023 YoY% Net cash provided by operating activities $ 28,390 $ 26,497 $ 191,251 7% Deduct: Acquisition of property and equipment
Slide 20: Free Cash Flow
Q2 | 2023 Free Cash Flow ($ in millions, unaudited) (1) (1) Acquisition of property $(17.3M) $(25.9M) $(51.9M) $(22.1M) $(23.2M) $(3.0M) $(44.9M) $(51.8M) $(83.8M) $(133.4M) $(157.2M) $(91.4M) $(110.9M) and equipment Purchases of intangible $(0.6M) — $(8.5M) $(0.3M) — $(7.6M) — — — $(1.5M) — $(0.5M)
Slide 21: Daily Active Users (DAUs)
Q2 | 2023 Daily Active Users (DAUs) (in millions) Year over year growth % 21
Slide 22: DAUs by Region and Age
Q2 | 2023 DAUs by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 90% 70% 78% 62% 5% 6% -1% -2% 3% 17% 19% 16% 15% U13 80% 79% 78% 60% 20% 20% 21% 20% 13% 14% 11% 12% 17% Europe 106% 113% 97% 79% 19% 15% 23% 20% 20% 30% 24% 27% 29% O13 117%
Slide 23: Hours Engaged
Q2 | 2023 Hours Engaged (in millions) Year over year growth % 23
Slide 24: Hours Engaged by Region and Age
Q2 | 2023 Hours Engaged by Region and Age (in millions) By Region By Age Group US & Canada Europe APAC ROW U13 O13 Unknown US & Canada 171% 107% 122% 88% -9% 0% -11% -10% 1% 21% 29% 21% 17% U13 154% 122% 115% 81% 3% 15% 14% 12% 6% 9% 7% 10% 13% Europe 178% 135% 117% 95% -2% 12% 20% 12% 20% 34% 28% 3
Slide 25: Bookings by Region
Q2 | 2023 Bookings by Region ($ in millions, unaudited) US & Canada Europe APAC ROW US & Canada 28% 23% 16% -11% -7% 13% 19% 21% 19% Europe 36% 21% 14% -6% -10% 0% 9% 17% 30% YoY APAC 42% 61% 63% 62% 47% 21% 18% 26% 17% ROW 118% 67% 24% 13% -6% -7% 11% 41% 36% Total 35% 28% 20% -3% -4% 10% 17% 23% 2
Slide 26: Average Bookings per DAU
Q2 | 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
Q2 | 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: Appendix A
Q2| 2023 Appendix A RQBLOX 28
Slide 29: Payer Community
Q2 | 2023 Payer Community New & Returning Monthly Unique Payers (in millions) Average Bookings Per Monthly Unique Payer 29
Slide 30: Stock-Based Compensation Expense by Department
Q2 | 2023 Stock-Based Compensation Expense by Department ($ in thousands, unaudited) 3 Months ended 2022 to 6/30/2023 6/30/2022 6/30/2021 2023 YoY% Infrastructure and trust & safety 22,695 13,655 7,797 66% Research and development 147,768 93,714 51,626 58% General and administrative 34,823 32,974 18
Slide 31: Shares Outstanding
Q2 | 2023 Shares Outstanding (in thousands, unaudited) As of 2022 to 2023 6/30/2023 6/30/2022 6/30/2021 YoY% Shares of Class A and B Common stock outstanding 616,301 596,622 574,595 3% Number of stock options outstanding1 46,588 55,921 73,244 -17% Number of unvested RSUs outstanding 36,045 21,909 10
Slide 32: Personnel Costs excl. Stock-Based Compensation by Department
Q2 | 2023 Personnel Costs excl. Stock-Based Compensation by Department ($ in thousands, unaudited) 3 Months ended 2022 to 6/30/2023 6/30/2022 6/30/2021 2023 YoY% Infrastructure and trust & safety 23,991 14,034 10,940 71% Research and development 136,547 96,645 61,877 41% General and administrative 3
Slide 33: Depreciation and Amortization by Department
Q2 | 2023 Depreciation and Amortization by Department ($ in thousands, unaudited) 3 Months ended 2022 to 6/30/2023 6/30/2022 6/30/2021 2023 YoY% Infrastructure and trust & safety 45,840 23,784 14,611 93% Research and development 6,271 4,881 3,006 28% General and administrative 415 266 127 56% Sales
Slide 34: Appendix B - Liquidity
Q2 | 2023 Appendix B - Liquidity 34
Slide 35: Principal Sources of Liquidity
Q2 | 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 Net Liquidity2 $2,017 $2,145 $2,087 $2,033 $1,988 $2,103 $2,020 1 Note: Amounts shown represent the net carrying amount of the senior
Slide 36: Covenant Adjusted EBITDA
Q2 | 2023 Covenant Adjusted EBITDA ($ 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
Q2 | 2023 Covenant Adjusted EBITDA Calculation ($ in thousands, unaudited) 3 Months ended 2022 to 6/30/2023 6/30/2022 2023 YoY% Consolidated Net Loss $ (284,841) $ (178,734) 59% Add (deduct): Interest income (34,764) (4,197) 728% Interest expense 10,129 9,891 2% Other (income)/expense, net (3,277) 3