10-QPeriod: Q1 FY2022

Roblox Corp Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 11, 2022For Securities:RBLX

Summary

Roblox Corporation's (RBLX) Q1 2022 report, filed on May 10, 2022, shows continued top-line growth with revenue increasing 39% year-over-year to $537.1 million. However, the company reported a widening net loss of $162.0 million compared to $136.1 million in the prior year's quarter, largely driven by significant increases in research and development, and infrastructure and trust & safety expenses. Bookings, a key operational metric, saw a slight decrease of 3% year-over-year to $631.2 million, which management attributes to moderating impacts from the prior year's COVID-19 surge and a change in accounting estimate for paying user life. Despite the increased investment in platform development and user growth, the company maintained a strong cash position with $3.1 billion in cash and cash equivalents at the end of the quarter.

Financial Highlights

49 data points
Beta

Revenue

$537.13M

74.7% Gross Margin

Net Income

-$160.20M

-29.8% Net Margin

EPS (Diluted)

$-0.27

Total Assets

$4.72B

Cash & Equivalents

$3.13B

Free Cash Flow

$104.65M

Financial Statements
Beta
Revenue$537.13M
Cost of Revenue$135.63M
Gross Profit$401.50M
R&D Expenses$177.76M
Operating Expenses$688.75M
Operating Income-$151.61M
Interest Expense$10.00M
Net Income-$160.20M
EPS (Basic)$-0.27
EPS (Diluted)$-0.27
Shares Outstanding (Basic)588.52M
Shares Outstanding (Diluted)588.52M

Key Highlights

  • 1Revenue increased by 39% to $537.1 million in Q1 2022 compared to Q1 2021.
  • 2Net loss widened to $162.0 million from $136.1 million in the prior year's quarter.
  • 3Bookings decreased by 3% to $631.2 million in Q1 2022 compared to Q1 2021.
  • 4Research and development expenses increased significantly by 84% year-over-year, reflecting investment in platform innovation.
  • 5Infrastructure and trust & safety expenses rose by 50%, indicating investment in platform capacity and user safety.
  • 6The company maintains a strong liquidity position with $3.1 billion in cash and cash equivalents as of March 31, 2022.
  • 7A change in accounting estimate for paying user life reduced Q1 2022 revenue by $82.5 million.

Frequently Asked Questions

The primary driver of the increased net loss was a significant increase in operating expenses, particularly in research and development (up 84%) and infrastructure and trust & safety (up 50%), as the company continues to invest in platform development, user engagement, and safety initiatives.

Management attributed the slight decrease in bookings to the moderation of COVID-19 related impacts from the prior year, and a change in accounting estimate for paying user life, which reduced revenue and bookings. They also noted that monetization per daily active user decreased slightly, influenced by user demographics and location.

The company revised its estimate for the average lifetime of a paying user from 23 to 25 months. This change reduced revenue by $82.5 million and cost of revenue by $19.6 million in Q1 2022, and is expected to decrease full-year 2022 revenue by approximately $141 million.

Roblox ended the first quarter of 2022 with a strong liquidity position, reporting $3.1 billion in cash and cash equivalents. The company believes this, along with cash provided by operations, will be sufficient to meet its needs for the next 12 months.