10-QPeriod: Q3 FY2023

Roblox Corp Quarterly Report for Q3 Ended Sep 30, 2023

Filed November 8, 2023For Securities:RBLX

Summary

Roblox Corporation reported a revenue of $713.2 million for the third quarter of 2023, marking a 38% increase year-over-year. While the company continues to grow its top line, it also reported a net loss of $277.2 million for the quarter. The company's bookings, a key non-GAAP measure, increased by 19.7% year-over-year to $839.5 million. This growth was primarily driven by an increase in daily active users (DAUs) and daily unique paying users. Roblox also highlighted its expanding investments in infrastructure and R&D to support platform growth and user experience, leading to increased operating expenses. The company ended the quarter with a strong liquidity position, holding $580 million in cash and cash equivalents and $1.58 billion in short-term investments.

Financial Highlights

52 data points
Beta

Revenue

$713.23M

77.1% Gross Margin

Net Income

-$277.16M

-38.9% Net Margin

EPS (Diluted)

$-0.45

Total Assets

$5.75B

Cash & Equivalents

$580.05M

Free Cash Flow

$59.51M

Financial Statements
Beta
Revenue$713.23M
Cost of Revenue$163.58M
Gross Profit$549.64M
R&D Expenses$321.61M
Operating Expenses$1.01B
Operating Income-$300.04M
Interest Expense$10.27M
Net Income-$277.16M
EPS (Basic)$-0.45
EPS (Diluted)$-0.45
Shares Outstanding (Basic)619.35M
Shares Outstanding (Diluted)619.35M

Key Highlights

  • 1Revenue increased by 38% year-over-year to $713.2 million for Q3 2023.
  • 2Bookings, a key non-GAAP measure, grew 19.7% year-over-year to $839.5 million.
  • 3Daily Active Users (DAUs) grew to an average of 70.2 million, with daily unique paying users increasing to 870,000.
  • 4Net loss attributable to common stockholders was $277.2 million for the quarter.
  • 5Operating expenses increased, driven by investments in infrastructure and R&D, with R&D expenses up 37% year-over-year.
  • 6The company ended Q3 2023 with $580.0 million in cash and cash equivalents and $1.58 billion in short-term investments, indicating a strong liquidity position.
  • 7Roblox acquired Speechly, Inc., a speech recognition software company, for $10.1 million.

Frequently Asked Questions

Roblox reported revenue of $713.2 million for the third quarter of 2023, a significant increase of 38% compared to the same period in the prior year. This growth was driven by higher amortization of prior period deferred revenue and an increase in bookings, supported by a rise in daily unique paying users.

No, Roblox incurred a net loss attributable to common stockholders of $277.2 million for the third quarter of 2023. While revenue and bookings are growing, operating expenses, particularly in infrastructure and research & development, have also increased significantly due to ongoing investments in the platform.

Bookings is a non-GAAP financial measure that represents the sales activity in a given period without certain non-cash adjustments, primarily related to the timing of revenue recognition for virtual currency purchases. Roblox considers bookings a timelier indicator of trends in their operating results and cash generation, as it reflects actual transactions with users.

Roblox increased its investments in infrastructure and R&D, which contributed to higher operating expenses. Infrastructure and trust & safety expenses grew by 15% year-over-year, and Research and Development expenses increased by 37% year-over-year for the third quarter. These investments are aimed at improving the platform's capabilities, user experience, and scalability.

Roblox maintained a strong liquidity position, with $580.0 million in cash and cash equivalents and $1.58 billion in short-term investments as of September 30, 2023. This indicates the company has sufficient resources to fund its operations and strategic initiatives.