Roblox Reports Third Quarter 2024 Financial Results
Roblox (NYSE: RBLX) reported strong Q3 2024 financial results with significant growth across key metrics. Revenue increased 29% year-over-year to $919.0 million, while bookings grew 34% to $1,128.5 million. The company achieved record user engagement with Daily Active Users (DAUs) up 27% to 88.9 million and Hours Engaged up 29% to 20.7 billion. Monthly unique payers increased 30% to 19.1 million. Despite growth, the company reported a net loss of $239.3 million. Free cash flow showed substantial improvement, up 266% year-over-year to $218.0 million, with strong liquidity position of $3.9 billion in cash and investments.
Roblox (NYSE: RBLX) ha riportato risultati finanziari solidi nel terzo trimestre del 2024, con una crescita significativa in metriche chiave. Il fatturato è aumentato del 29% rispetto all'anno precedente, raggiungendo i 919,0 milioni di dollari, mentre le prenotazioni sono cresciute del 34%, attestandosi a 1.128,5 milioni di dollari. L'azienda ha raggiunto un record di coinvolgimento degli utenti, con Utenti Attivi Giornalieri (DAU) in crescita del 27%, arrivando a 88,9 milioni, e Ore di Coinvolgimento aumentate del 29%, per un totale di 20,7 miliardi. Gli acquirenti unici mensili sono aumentati del 30%, raggiungendo i 19,1 milioni. Nonostante la crescita, l'azienda ha registrato una perdita netta di 239,3 milioni di dollari. Il flusso di cassa libero ha mostrato un miglioramento sostanziale, aumentando del 266% rispetto all'anno precedente, fino a 218,0 milioni di dollari, con una solida posizione di liquidità di 3,9 miliardi di dollari in cassa e investimenti.
Roblox (NYSE: RBLX) informó resultados financieros sólidos para el tercer trimestre de 2024, con un crecimiento significativo en métricas clave. Los ingresos aumentaron un 29% interanual, alcanzando los 919,0 millones de dólares, mientras que las reservas crecieron un 34% hasta los 1.128,5 millones de dólares. La compañía logró un récord de participación de usuarios con Usuarios Activos Diarios (DAUs) en aumento del 27%, alcanzando los 88,9 millones, y Horas de Participación incrementándose un 29%, totalizando 20,7 mil millones. Los pagadores únicos mensuales aumentaron un 30%, llegando a 19,1 millones. A pesar del crecimiento, la empresa reportó una pérdida neta de 239,3 millones de dólares. El flujo de caja libre mostró una mejora sustancial, aumentando un 266% interanual hasta 218,0 millones de dólares, con una sólida posición de liquidez de 3,9 mil millones de dólares en efectivo e inversiones.
Roblox (NYSE: RBLX)는 2024년 3분기 재정 실적을 발표하며 주요 지표에서 상당한 성장을 기록했습니다. 수익은 전년 대비 29% 증가하여 9억 1900만 달러에 달했고, 예약은 34% 증가하여 11억 2850만 달러에 이르렀습니다. 회사는 일일 활성 사용자 (DAUs) 수가 27% 증가하여 8890만 명에 달하고, 참여 시간이 29% 증가하여 207억 시간에 이르는 기록적인 사용자 참여를 달성했습니다. 월간 고유 유료 사용자 수는 30% 증가하여 1910만 명에 도달했습니다. 성장에도 불구하고, 회사는 2억 3930만 달러의 순손실을 보고했습니다. 자유 현금 흐름은 전년 대비 266% 증가하여 2억 1800만 달러에 이르렀고, 현금 및 투자에서 39억 달러의 강력한 유동성 위치를 보유하고 있습니다.
Roblox (NYSE: RBLX) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec une croissance significative dans des indicateurs clés. Le chiffre d'affaires a augmenté de 29% par rapport à l'année précédente, atteignant 919,0 millions de dollars, tandis que les réservations ont crû de 34% pour s'établir à 1.128,5 millions de dollars. L'entreprise a atteint un record d'engagement des utilisateurs avec Utilisateurs Actifs Quotidiens (DAUs) en hausse de 27% à 88,9 millions et Heures d'Engagement en hausse de 29% à 20,7 milliards. Le nombre de payeurs uniques mensuels a augmenté de 30% pour atteindre 19,1 millions. Malgré cette croissance, l'entreprise a déclaré une perte nette de 239,3 millions de dollars. Le flux de trésorerie disponible a montré une amélioration substantielle, en hausse de 266% par rapport à l'année précédente, atteignant 218,0 millions de dollars, avec une position de liquidité solide de 3,9 milliards de dollars en liquidités et investissements.
Roblox (NYSE: RBLX) hat im dritten Quartal 2024 starke finanzielle Ergebnisse berichtet, mit einem signifikanten Wachstum in wichtigen Kennzahlen. Der Umsatz stieg im Jahresvergleich um 29% auf 919,0 Millionen Dollar, während die Buchungen um 34% auf 1.128,5 Millionen Dollar wuchsen. Das Unternehmen erreichte einen Rekord bei der Nutzerbindung, mit täglichen aktiven Nutzern (DAUs), die um 27% auf 88,9 Millionen stiegen, und Engagement-Stunden, die um 29% auf 20,7 Milliarden angestiegen sind. Die monatlich einzigartigen Zahlenden erhöhten sich um 30% auf 19,1 Millionen. Trotz des Wachstums berichtete das Unternehmen von einem Nettoverlust von 239,3 Millionen Dollar. Der freie Cashflow zeigte eine erhebliche Verbesserung von 266% im Jahresvergleich auf 218,0 Millionen Dollar, mit einer soliden Liquiditätslage von 3,9 Milliarden Dollar in Bargeld und Investitionen.
- Revenue growth of 29% YoY to $919.0 million
- Bookings increase of 34% YoY to $1,128.5 million
- Daily Active Users up 27% YoY to 88.9 million
- Free cash flow up 266% YoY to $218.0 million
- Monthly unique payers increased 30% YoY to 19.1 million
- Strong liquidity position with $3.9 billion in cash and investments
- Net loss of $239.3 million in Q3 2024
Insights
Roblox delivered an impressive Q3 2024 performance with substantial growth across key metrics. Revenue surged
Most notably, the company's monetization efficiency improved with bookings per DAU rising
The platform's ability to grow its paying user base by
Despite reporting a net loss of
Strong Growth Across Core Financial and Operating Metrics; Revenue up
Third Quarter 2024 Financial, Operational, and Liquidity Highlights
-
Revenue was
, up$919.0 million 29% year-over-year. -
Bookings1 were
, up$1,128.5 million 34% year-over-year. -
Net loss attributable to common stockholders was
, while consolidated net loss was$239.3 million .$240.4 million -
Adjusted EBITDA1 was
, which excludes adjustments for increases in deferred revenue and deferred cost of revenue of$55.0 million and$216.3 million , respectively, or a total change in deferred of$(47.9) million .$168.4 million -
Net cash and cash equivalents provided by operating activities was
, up$247.4 million 120% year-over-year, while free cash flow1 was , up$218.0 million 266% year-over-year. -
Average Daily Active Users (“DAUs”) were 88.9 million, up
27% year-over-year. -
Average monthly unique payers were 19.1 million, up
30% year-over-year, and average bookings per monthly unique payer was .$19.70 -
Hours engaged were 20.7 billion, up
29% year-over-year. -
Average bookings per DAU was
, up$12.70 6% year-over-year. -
Cash and cash equivalents, short-term investments, and long-term investments totaled
; net liquidity2 was$3.9 billion .$2.9 billion
“Roblox’s exceptional Q3 results demonstrate the strength of our platform and the effectiveness of our growth strategies. We’re particularly proud of the progress we’ve made in empowering creators, fostering social connections, and expanding our global reach. As we look ahead, we remain committed to building the world’s largest social platform for play, and we’re confident that our continued innovation and focus on safety will drive long-term value for our shareholders and the broader Roblox community,” said David Baszucki, founder and CEO of Roblox.
“In the third quarter of 2024, our key financial and operating metrics grew at high rates and in all cases were above the guidance we delivered on our Q2 2024 earnings call with significant year-over-year growth in revenue of
____________________ | ||
1 |
Bookings, Adjusted EBITDA, and free cash flow are non-GAAP financial measures that we believe are useful in evaluating our performance and are presented for supplemental information purposes only and should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. For further information, please refer to definitions and reconciliations provided below and in our annual and quarterly SEC filings. |
|
2 |
Net liquidity represents cash and cash equivalents, short-term investments, and long-term investments, less long-term debt, net. |
Forward Looking Guidance
Roblox provides its fourth quarter and updated full year 2024 GAAP and non-GAAP guidance:
Fourth Quarter 2024 Guidance
-
Revenue between
and$935 million .$960 million -
Bookings between
and$1,336 million .$1,361 million -
Consolidated net loss between
and$(303) million .$(283) million -
Adjusted EBITDA between
and$10 million , which excludes adjustments for:$30 million -
Increase in deferred revenue of
.$406 million -
Increase in deferred cost of revenue of
.$(86) million -
The total of these changes in deferrals of
.$320 million
-
Increase in deferred revenue of
-
Net cash and cash equivalents provided by operating activities between
and$170 million .$185 million -
Capital expenditures and purchases of intangible assets of
.$(70) million -
Free cash flow between
and$100 million .$115 million
Updated Full Year 2024 Guidance
-
Revenue between
and$3,549 million .$3,574 million -
Bookings between
and$4,343 million .$4,368 million -
Consolidated net loss between
and$(1,023) million .$(1,003) million -
Adjusted EBITDA between
and$125 million , which excludes adjustments for:$145 million -
Increase in deferred revenue of
.$817 million -
Increase in deferred cost of revenue of
.$(186) million -
The total of these changes in deferrals of
.$631 million
-
Increase in deferred revenue of
-
Net cash and cash equivalents provided by operating activities between
and$808 million .$823 million -
Capital expenditures and purchases of intangible assets of
.$(187) million -
Free cash flow between
and$621 million .$636 million
Earnings Q&A Session
Roblox will host a live Q&A session to answer questions regarding its third quarter 2024 results on Thursday, October 31, 2024 at 5:30 a.m. Pacific Time/8:30 a.m. Eastern Time. The webcast will be open to the public at ir.roblox.com or by clicking here.
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 vision to connect one billion global DAUs, our vision to reach
The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Special Note Regarding Operating Metrics
Additional information regarding our core financial and operating metrics disclosed above is included in the reports we have filed or will file with the SEC, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We encourage investors and others to review these reports in their entirety.
ROBLOX CORPORATION |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except par values) |
||||||||
(unaudited) |
||||||||
|
|
|
||||||
|
|
As of |
||||||
|
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
602,631 |
|
|
$ |
678,466 |
|
|
Short-term investments |
|
1,720,323 |
|
|
|
1,514,808 |
|
|
Accounts receivable—net of allowances |
|
385,591 |
|
|
|
505,769 |
|
|
Prepaid expenses and other current assets |
|
70,702 |
|
|
|
74,549 |
|
|
Deferred cost of revenue, current portion |
|
588,915 |
|
|
|
501,821 |
|
|
Total current assets |
|
3,368,162 |
|
|
|
3,275,413 |
|
|
Long-term investments |
|
1,558,846 |
|
|
|
1,043,399 |
|
|
Property and equipment—net |
|
642,637 |
|
|
|
695,360 |
|
|
Operating lease right-of-use assets |
|
626,486 |
|
|
|
665,107 |
|
|
Deferred cost of revenue, long-term |
|
295,894 |
|
|
|
283,326 |
|
|
Intangible assets, net |
|
38,486 |
|
|
|
53,060 |
|
|
Goodwill |
|
142,236 |
|
|
|
142,129 |
|
|
Other assets |
|
15,215 |
|
|
|
10,284 |
|
|
Total assets |
$ |
6,687,962 |
|
|
$ |
6,168,078 |
|
|
Liabilities and Stockholders’ equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
42,842 |
|
|
$ |
60,087 |
|
|
Accrued expenses and other current liabilities |
|
273,694 |
|
|
|
271,121 |
|
|
Developer exchange liability |
|
330,271 |
|
|
|
314,866 |
|
|
Deferred revenue—current portion |
|
2,792,396 |
|
|
|
2,406,292 |
|
|
Total current liabilities |
|
3,439,203 |
|
|
|
3,052,366 |
|
|
Deferred revenue—net of current portion |
|
1,397,803 |
|
|
|
1,373,250 |
|
|
Operating lease liabilities |
|
620,257 |
|
|
|
646,506 |
|
|
Long-term debt, net |
|
1,006,023 |
|
|
|
1,005,000 |
|
|
Other long-term liabilities |
|
46,218 |
|
|
|
22,330 |
|
|
Total liabilities |
|
6,509,504 |
|
|
|
6,099,452 |
|
|
Stockholders’ equity |
|
|
|
|||||
Common stock, |
|
62 |
|
|
|
61 |
|
|
Additional paid-in capital |
|
3,949,491 |
|
|
|
3,134,946 |
|
|
Accumulated other comprehensive income/(loss) |
|
16,416 |
|
|
|
1,536 |
|
|
Accumulated deficit |
|
(3,776,064 |
) |
|
|
(3,060,253 |
) |
|
Total Roblox Corporation Stockholders’ equity |
|
189,905 |
|
|
|
76,290 |
|
|
Noncontrolling interest |
|
(11,447 |
) |
|
|
(7,664 |
) |
|
Total Stockholders’ equity |
|
178,458 |
|
|
|
68,626 |
|
|
Total Liabilities and Stockholders’ equity |
$ |
6,687,962 |
|
|
$ |
6,168,078 |
|
ROBLOX CORPORATION |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue(1) |
$ |
918,953 |
|
$ |
713,225 |
|
$ |
2,613,796 |
|
$ |
2,049,335 |
|
||||
Cost and expenses: |
|
|
|
|
||||||||||||
Cost of revenue(1)(2) |
|
204,998 |
|
|
163,581 |
|
|
582,421 |
|
|
477,451 |
|
||||
Developer exchange fees |
|
231,536 |
|
|
170,719 |
|
|
642,211 |
|
|
519,002 |
|
||||
Infrastructure and trust & safety |
|
244,598 |
|
|
218,968 |
|
|
692,596 |
|
|
655,051 |
|
||||
Research and development |
|
365,424 |
|
|
321,613 |
|
|
1,089,173 |
|
|
912,469 |
|
||||
General and administrative |
|
98,733 |
|
|
97,508 |
|
|
302,184 |
|
|
291,279 |
|
||||
Sales and marketing |
|
52,592 |
|
|
40,874 |
|
|
124,416 |
|
|
97,957 |
|
||||
Total cost and expenses |
|
1,197,881 |
|
|
1,013,263 |
|
|
3,433,001 |
|
|
2,953,209 |
|
||||
Loss from operations |
|
(278,928 |
) |
|
(300,038 |
) |
|
(819,205 |
) |
|
(903,874 |
) |
||||
Interest income |
|
46,718 |
|
|
36,442 |
|
|
133,271 |
|
|
102,288 |
|
||||
Interest expense |
|
(10,286 |
) |
|
(10,268 |
) |
|
(30,853 |
) |
|
(30,409 |
) |
||||
Other income/(expense), net |
|
2,352 |
|
|
(4,262 |
) |
|
(1,309 |
) |
|
(1,425 |
) |
||||
Loss before income taxes |
|
(240,144 |
) |
|
(278,126 |
) |
|
(718,096 |
) |
|
(833,420 |
) |
||||
Provision for/(benefit from) income taxes |
|
303 |
|
|
682 |
|
|
1,466 |
|
|
177 |
|
||||
Consolidated net loss |
|
(240,447 |
) |
|
(278,808 |
) |
|
(719,562 |
) |
|
(833,597 |
) |
||||
Net loss attributable to noncontrolling interest |
|
(1,123 |
) |
|
(1,650 |
) |
|
(3,751 |
) |
|
(5,349 |
) |
||||
Net loss attributable to common stockholders |
$ |
(239,324 |
) |
$ |
(277,158 |
) |
$ |
(715,811 |
) |
$ |
(828,248 |
) |
||||
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.37 |
) |
$ |
(0.45 |
) |
$ |
(1.11 |
) |
$ |
(1.35 |
) |
||||
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted |
|
650,961 |
|
|
619,350 |
|
|
642,977 |
|
|
612,938 |
|
(1) |
Beginning April 1, 2024, the estimated average lifetime of a payer changed from 28 months to 27 months. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the change resulted in an increase in revenue and cost of revenue during the three months ended September 30, 2024 of |
|
(2) |
Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety. |
ROBLOX CORPORATION |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
Cash flows from operating activities: |
|
|
|
|
||||||||||||
Consolidated net loss |
$ |
(240,447 |
) |
$ |
(278,808 |
) |
$ |
(719,562 |
) |
$ |
(833,597 |
) |
||||
Adjustments to reconcile net loss including noncontrolling interest to net cash and cash equivalents provided by operations: |
|
|
|
|
||||||||||||
Depreciation and amortization expense |
|
68,613 |
|
|
53,600 |
|
|
175,126 |
|
|
153,611 |
|
||||
Stock-based compensation expense |
|
265,165 |
|
|
220,022 |
|
|
757,558 |
|
|
617,288 |
|
||||
Operating lease non-cash expense |
|
31,104 |
|
|
26,048 |
|
|
88,592 |
|
|
70,801 |
|
||||
(Accretion)/amortization on marketable securities, net |
|
(20,909 |
) |
|
(20,474 |
) |
|
(60,442 |
) |
|
(52,219 |
) |
||||
Amortization of debt issuance costs |
|
344 |
|
|
331 |
|
|
1,023 |
|
|
982 |
|
||||
Impairment expense, (gain)/loss on investment and other asset sales, and other, net |
|
1,907 |
|
|
1,578 |
|
|
2,350 |
|
|
7,747 |
|
||||
Changes in operating assets and liabilities, net of effect of acquisitions: |
|
|
|
|
||||||||||||
Accounts receivable |
|
(40,585 |
) |
|
(29,454 |
) |
|
119,460 |
|
|
93,174 |
|
||||
Prepaid expenses and other current assets |
|
16,295 |
|
|
4,298 |
|
|
3,340 |
|
|
(1,861 |
) |
||||
Deferred cost of revenue |
|
(46,876 |
) |
|
(23,477 |
) |
|
(99,491 |
) |
|
(62,074 |
) |
||||
Other assets |
|
1,744 |
|
|
502 |
|
|
(4,922 |
) |
|
(6,189 |
) |
||||
Accounts payable |
|
4,424 |
|
|
2,279 |
|
|
(4,404 |
) |
|
3,855 |
|
||||
Accrued expenses and other current liabilities |
|
8,238 |
|
|
19,745 |
|
|
(15,278 |
) |
|
(2,599 |
) |
||||
Developer exchange liability |
|
(18 |
) |
|
18,880 |
|
|
15,405 |
|
|
7,724 |
|
||||
Deferred revenue |
|
212,159 |
|
|
130,943 |
|
|
409,809 |
|
|
360,098 |
|
||||
Operating lease liabilities |
|
(25,292 |
) |
|
(15,994 |
) |
|
(54,621 |
) |
|
(46,837 |
) |
||||
Other long-term liabilities |
|
11,564 |
|
|
2,685 |
|
|
23,882 |
|
|
4,971 |
|
||||
Net cash and cash equivalents provided by operating activities |
|
247,430 |
|
|
112,704 |
|
|
637,825 |
|
|
314,875 |
|
||||
Cash flows from investing activities: |
|
|
|
|
||||||||||||
Acquisition of property and equipment |
|
(29,405 |
) |
|
(53,196 |
) |
|
(115,786 |
) |
|
(255,470 |
) |
||||
Payments related to business combination, net of cash acquired |
|
(840 |
) |
|
(3,859 |
) |
|
(2,840 |
) |
|
(3,859 |
) |
||||
Purchases of intangible assets |
|
— |
|
|
— |
|
|
(1,370 |
) |
|
(13,500 |
) |
||||
Purchases of investments |
|
(1,607,405 |
) |
|
(761,151 |
) |
|
(3,474,187 |
) |
|
(3,803,911 |
) |
||||
Maturities of investments |
|
842,450 |
|
|
632,000 |
|
|
2,431,770 |
|
|
956,010 |
|
||||
Sales of investments |
|
161,547 |
|
|
117,487 |
|
|
394,853 |
|
|
346,766 |
|
||||
Net cash and cash equivalents used in investing activities |
|
(633,653 |
) |
|
(68,719 |
) |
|
(767,560 |
) |
|
(2,773,964 |
) |
||||
Cash flows from financing activities: |
|
|
|
|
||||||||||||
Proceeds from issuance of common stock |
|
19,949 |
|
|
16,209 |
|
|
57,196 |
|
|
47,316 |
|
||||
Proceeds from debt issuances |
|
— |
|
|
— |
|
|
— |
|
|
14,700 |
|
||||
Financing payments related to acquisitions |
|
— |
|
|
— |
|
|
(4,450 |
) |
|
(750 |
) |
||||
Net cash and cash equivalents provided by financing activities |
|
19,949 |
|
|
16,209 |
|
|
52,746 |
|
|
61,266 |
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
2,499 |
|
|
(409 |
) |
|
1,154 |
|
|
398 |
|
||||
Net increase/(decrease) in cash and cash equivalents |
|
(363,775 |
) |
|
59,785 |
|
|
(75,835 |
) |
|
(2,397,425 |
) |
||||
Cash and cash equivalents |
|
|
|
|
||||||||||||
Beginning of period |
|
966,406 |
|
|
520,264 |
|
|
678,466 |
|
|
2,977,474 |
|
||||
End of period |
$ |
602,631 |
|
$ |
580,049 |
|
$ |
602,631 |
|
$ |
580,049 |
|
Non-GAAP Financial Measures
This press release and the accompanying tables contain the non-GAAP financial measure bookings, Adjusted EBITDA, and free cash flow.
We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance.
Bookings is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Substantially all of our bookings are generated from sales of virtual currency, which can ultimately be converted to virtual items on the Roblox Platform. Sales of virtual currency reflected as bookings include one-time purchases and monthly subscriptions purchased via payment processors or through prepaid cards. Bookings also include an insignificant amount from advertising and licensing arrangements. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Adjusted EBITDA represents our GAAP consolidated net loss, excluding interest income, interest expense, other income/(expense), provision for/(benefit from) income taxes, depreciation and amortization expense, stock-based compensation expense, and certain other nonrecurring adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted EBITDA is useful to investors and management in understanding our ongoing operations and ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. Free cash flow represents the net cash and cash equivalents provided by operating activities less purchases of property, equipment, and intangible assets acquired through asset acquisitions. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property, equipment, and intangible assets acquired through asset acquisitions, can be used for strategic initiatives.
Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.
Reconciliation tables of the most comparable GAAP financial measure to the non-GAAP financial measure used in this press release are included below. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measures.
GAAP to Non-GAAP Financial Measures Reconciliations
The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands, unaudited):
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Reconciliation of revenue to bookings: |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
918,953 |
|
|
$ |
713,225 |
|
|
$ |
2,613,796 |
|
|
$ |
2,049,335 |
|
|
Add (deduct): |
|
|
|
|
|
|
|
|||||||||
Change in deferred revenue |
|
216,325 |
|
|
|
130,957 |
|
|
|
410,657 |
|
|
|
360,112 |
|
|
Other |
|
(6,758 |
) |
|
|
(4,729 |
) |
|
|
(16,998 |
) |
|
|
(15,489 |
) |
|
Bookings |
$ |
1,128,520 |
|
|
$ |
839,453 |
|
|
$ |
3,007,455 |
|
|
$ |
2,393,958 |
|
The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands, unaudited):
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Reconciliation of consolidated net loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|||||||||
Consolidated net loss |
$ |
(240,447 |
) |
|
$ |
(278,808 |
) |
|
$ |
(719,562 |
) |
|
$ |
(833,597 |
) |
|
Add (deduct): |
|
|
|
|
|
|
|
|||||||||
Interest income |
|
(46,718 |
) |
|
|
(36,442 |
) |
|
|
(133,271 |
) |
|
|
(102,288 |
) |
|
Interest expense |
|
10,286 |
|
|
|
10,268 |
|
|
|
30,853 |
|
|
|
30,409 |
|
|
Other (income)/expense, net |
|
(2,352 |
) |
|
|
4,262 |
|
|
|
1,309 |
|
|
|
1,425 |
|
|
Provision for/(benefit from) income taxes |
|
303 |
|
|
|
682 |
|
|
|
1,466 |
|
|
|
177 |
|
|
Depreciation and amortization expense(A) |
|
68,613 |
|
|
|
53,600 |
|
|
|
175,126 |
|
|
|
153,611 |
|
|
Stock-based compensation expense |
|
265,165 |
|
|
|
220,022 |
|
|
|
757,558 |
|
|
|
617,288 |
|
|
RTO severance charge(B) |
|
108 |
|
|
|
— |
|
|
|
1,101 |
|
|
|
— |
|
|
Other non-cash charges(C) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,988 |
|
|
Adjusted EBITDA |
$ |
54,958 |
|
|
$ |
(26,416 |
) |
|
$ |
114,580 |
|
|
$ |
(125,987 |
) |
(A) |
Includes a one-time charge of |
|
(B) |
Relates to cash severance costs associated with the Company’s return-to-office (“RTO”) plan announced in October 2023, which required a subset of the Company’s remote employees to begin working from the |
|
(C) |
Includes impairment expenses related to certain operating lease right-of-use assets and related property and equipment. |
The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands, unaudited):
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow: |
|
|
|
|
|
|
|
|||||||||
Net cash and cash equivalents provided by operating activities |
$ |
247,430 |
|
|
$ |
112,704 |
|
|
$ |
637,825 |
|
|
$ |
314,875 |
|
|
Deduct: |
|
|
|
|
|
|
|
|||||||||
Acquisition of property and equipment |
|
(29,405 |
) |
|
|
(53,196 |
) |
|
|
(115,786 |
) |
|
|
(255,470 |
) |
|
Purchases of intangible assets |
|
— |
|
|
|
— |
|
|
|
(1,370 |
) |
|
|
(13,500 |
) |
|
Free cash flow |
$ |
218,025 |
|
|
$ |
59,508 |
|
|
$ |
520,669 |
|
|
$ |
45,905 |
|
Forward Looking Guidance3: GAAP to Non-GAAP Financial Measures Reconciliations
The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands):
|
Guidance |
|
Updated Guidance |
|||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||
|
Low |
|
High |
|
Low |
|
High |
|||||||||
Reconciliation of revenue to bookings: |
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
935,000 |
|
|
$ |
960,000 |
|
|
$ |
3,548,796 |
|
|
$ |
3,573,796 |
|
|
Add (deduct): |
|
|
|
|
|
|
|
|||||||||
Change in deferred revenue |
|
406,000 |
|
|
|
406,000 |
|
|
|
816,657 |
|
|
|
816,657 |
|
|
Other |
|
(5,000 |
) |
|
|
(5,000 |
) |
|
|
(21,998 |
) |
|
|
(21,998 |
) |
|
Bookings |
$ |
1,336,000 |
|
|
$ |
1,361,000 |
|
|
$ |
4,343,455 |
|
|
$ |
4,368,455 |
|
The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands):
|
Guidance |
|
Updated Guidance |
|||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||
|
Low |
|
High |
|
Low |
|
High |
|||||||||
Reconciliation of consolidated net loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|||||||||
Consolidated net loss |
$ |
(303,000 |
) |
|
$ |
(283,000 |
) |
|
$ |
(1,022,562 |
) |
|
$ |
(1,002,562 |
) |
|
Add (deduct): |
|
|
|
|
|
|
|
|||||||||
Interest income |
|
(40,000 |
) |
|
|
(40,000 |
) |
|
|
(173,271 |
) |
|
|
(173,271 |
) |
|
Interest expense |
|
11,000 |
|
|
|
11,000 |
|
|
|
41,853 |
|
|
|
41,853 |
|
|
Other (income)/expense, net |
|
— |
|
|
|
— |
|
|
|
1,309 |
|
|
|
1,309 |
|
|
Provision for/(benefit from) income taxes |
|
2,000 |
|
|
|
2,000 |
|
|
|
3,466 |
|
|
|
3,466 |
|
|
Depreciation and amortization expense |
|
55,000 |
|
|
|
55,000 |
|
|
|
230,126 |
|
|
|
230,126 |
|
|
Stock-based compensation expense |
|
285,000 |
|
|
|
285,000 |
|
|
|
1,042,558 |
|
|
|
1,042,558 |
|
|
RTO severance charge(A) |
|
— |
|
|
|
— |
|
|
|
1,101 |
|
|
|
1,101 |
|
|
Adjusted EBITDA |
$ |
10,000 |
|
|
$ |
30,000 |
|
|
$ |
124,580 |
|
|
$ |
144,580 |
|
(A) |
Relates to cash severance costs associated with the Company’s RTO plan announced in October 2023, which required a subset of the Company’s remote employees to begin working from the |
The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands):
|
Guidance |
|
Updated Guidance |
|||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||
|
Low |
|
High |
|
Low |
|
High |
|||||||||
Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow: |
|
|
|
|
|
|
|
|||||||||
Net cash and cash equivalents provided by operating activities |
$ |
170,000 |
|
|
$ |
185,000 |
|
|
$ |
807,825 |
|
|
$ |
822,825 |
|
|
Deduct: |
|
|
|
|
|
|
|
|||||||||
Acquisition of property and equipment |
|
(70,000 |
) |
|
|
(70,000 |
) |
|
|
(185,786 |
) |
|
|
(185,786 |
) |
|
Purchase of intangible assets |
|
— |
|
|
|
— |
|
|
|
(1,370 |
) |
|
|
(1,370 |
) |
|
Free cash flow |
$ |
100,000 |
|
|
$ |
115,000 |
|
|
$ |
620,669 |
|
|
$ |
635,669 |
|
____________________ | ||
3 |
|
Beginning April 1, 2024, the estimated average lifetime of a payer changed from 28 months to 27 months, which is reflected in our fourth quarter and updated full year 2024 GAAP and non-GAAP guidance. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the April 1, 2024 change in estimated average lifetime of a payer will result in an increase in revenue and cost of revenue of |
About Roblox
Roblox is an immersive platform for connection and communication. Every day, millions of people come to Roblox to create, play, work, learn, and connect with each other in experiences built by our global community of creators. Our vision is to reimagine the way people come together – in a world that is safe, civil, and optimistic. To achieve this vision, we are building an innovative company that, together with the Roblox community, has the ability to strengthen our social fabric and support economic growth for people around the world. For more about Roblox, please visit corp.roblox.com.
ROBLOX and the Roblox logo are among the registered and unregistered trademarks of Roblox Corporation in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031953593/en/
Stefanie Notaney
Roblox Corporate Communications
press@roblox.com
Source: Roblox Corporation
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