Roblox Reports First Quarter 2021 Financial Results

Rhea-AI Summary

Roblox Corporation (NYSE: RBLX) reported strong Q1 2021 results, with revenue rising 140% year-over-year to $387 million. The net loss was $134.2 million, but net cash from operations increased nearly fourfold to $164.5 million, excluding one-time listing costs. Bookings soared 161% to $652.3 million. Daily Active Users (DAUs) grew 79% to 42.1 million, with significant growth in international markets and among users aged 13+. April estimates show further growth, with bookings between $242-245 million.

Positive

• Revenue increased 140% year-over-year to $387 million.
• Net cash provided by operating activities rose nearly 4x to $164.5 million.
• Bookings surged 161% over Q1 2020 to $652.3 million.
• Daily Active Users reached 42.1 million, up 79% year-over-year.

Negative

• Net loss for Q1 2021 was $134.2 million.

Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its first quarter 2021 financial results today and separately posted a letter to shareholders and supplemental materials on the Roblox investor relations website at ir.roblox.com.

First Quarter 2021 Financial Highlights

• Revenue increased 140% over Q1 2020 to $387.0 million
• Net Loss for Q1 2020 was $134.2 million
• Net cash provided by operating activities increased nearly 4x over Q1 2020 to $164.5 million (including one-time direct listing expenses of $51.9 million). Exclusive of one-time expenses related to our direct listing, net cash provided by operating activities would have been $216.4 million.
• Bookings increased 161% over Q1 2020 to $652.3 million
• Free Cash Flow increased 4.1x over Q1 2020 to $142.1 million
• Average Daily Active Users (DAUs) were 42.1 million, an increase of 79% year over year driven by:
  • 87% growth in DAUs outside of the US/Canada
  • 111% growth in DAUs over the age of 13
• Hours Engaged were 9.7 billion, an increase of 98% year over year primarily driven by:
  • 104% growth in engagement in markets outside of the US/Canada
  • 128% growth from users over the age of 13
• Average Bookings per DAU (ABPDAU) was $15.48, an increase of 46% year over year

April 2021 Key Metric Estimates

• Daily active users were 43.3 million, up 37% from April of last year and up sequentially from 42.3 million in March 2021
• Hours engaged were 3.2 billion, up 18% year over year and flat sequentially from March 2021
• Bookings were between $242 million and $245 million, up 59% - 61% year over year and up sequentially 7% - 9% from March 2021 when bookings were $225.3 million
• Average bookings per DAU were between $5.59 - $5.66, up 16% - 17% year over year and 5% - 6% sequentially from March 2021
• Revenue was $143 million - $145 million, up 136% - 140% year over year and 5% - 7% sequentially from March 2021

“A fundamental part of being human is connecting with others, and we’re inspired by the way in which the Roblox community creates and shares experiences to play, work and even learn together,” said David Baszucki, Roblox CEO. “The opportunity of what we’re building at Roblox is massive, and we will continue to make long-term investments as we build a human co-experience platform that enables shared experiences among billions of users.”

“Our first quarter 2021 results enabled us to continue investing aggressively in the key areas that we believe will drive long term growth and value, specifically hiring talented engineering and product professionals and growing the earnings for our developer community,” said Michael Guthrie, Chief Financial Officer of Roblox. “We believe we must continue to innovate and so remain focused on building great technology to make progress on our key growth vectors, primarily international expansion and expanding the age demographic of our users.”

Earnings Q&A Session

Roblox will host a live Q&A session to answer questions regarding their first quarter 2021 results on Tuesday, May 11, 2021 at 5:30 a.m. Pacific Time. The webcast will be open to the public at ir.roblox.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our product development, investment strategy, business strategy and plans. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number

FAQ

What were the Q1 2021 earnings results for RBLX?

Roblox reported a Q1 2021 revenue of $387 million, a 140% increase from the previous year, and a net loss of $134.2 million.

How did daily active users change for RBLX in Q1 2021?

Daily Active Users increased 79% year-over-year to 42.1 million in Q1 2021.

What are the April 2021 estimates for RBLX bookings?

April 2021 bookings are estimated to be between $242 million and $245 million, representing a growth of 59% - 61% year-over-year.

How did RBLX perform in terms of cash flow?

Net cash provided by operating activities for Q1 2021 was $164.5 million, excluding one-time expenses related to the direct listing.