01—Abstract
Summary
Summary of the 10-Q filed May 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Roblox Corporation (RBLX) reported its first quarter 2024 financial results, showing continued revenue growth driven by an increase in daily active users and higher bookings.
Revenue for the quarter increased by 22% year-over-year to $801.3 milliona. The company also demonstrated improved free cash flow, reaching $191.1 million, a significant increase from the prior year period. However, Roblox continued to report a net loss, albeit with a slight improvement in the loss per share compared to the previous year.
Key operational highlights include a rise in average daily active users (DAUs) and a notable increase in average bookings per DAU, indicating stronger monetization. The company also made adjustments to its estimated average lifetime of a paying user, which is expected to positively impact revenue in the coming quarters.
Despite the net loss, the company's cash position remains strong, bolstered by continued positive cash flow from operations. Investors should note the significant stock-based compensation expenses and ongoing investments in research and development and infrastructure as factors impacting profitability.
02—Key points
Key Highlights
- Revenue increased by 22% year-over-year to $801.3 million for Q1 2024.
- Bookings grew to $923.8 million, a significant increase driven by higher average daily paying users.
- Net loss attributable to common stockholders was $270.6 million, a slight improvement from $268.3 million in Q1 2023.
- Free cash flow was $191.1 million, demonstrating strong operational cash generation.
- Average Daily Active Users (DAUs) increased, reflecting continued platform engagement.
- Stock-based compensation expense increased significantly to $240.5 million, primarily impacting research and development costs.
- The company adjusted its estimated average lifetime of a paying user, expecting a positive impact on future revenue.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, Roblox Corp lost $0.34.
- Revenue$801.3M100.0%
- Cost of revenue−$178.9M22.3%
- Gross profit$622.4M77.7%
- Operating costs−$924.8M115.4%
- Operating income−$302.3M37.7%
- Interest, other & tax$31.7M4.0%
- Net income−$270.6M33.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 9, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $801.30M$655.34M | +22.3% |
| Cost of Revenue | $178.87M$151.84M | +17.8% |
| Gross Profit | $622.43M$503.50M | +23.6% |
| R&D Expenses | $362.06M$275.54M | +31.4% |
| Operating Expenses | $1.10B$945.19M | +16.8% |
| Operating Income | -$302.33M-$289.85M | −4.3% |
| Interest Expense | $10.36M$10.01M | +3.5% |
| Net Income | -$270.60M-$268.31M | −0.9% |
| EPS (Basic) | $-0.43$-0.44 | +2.3% |
| EPS (Diluted) | $-0.43$-0.44 | +2.3% |
| Shares Outstanding (Basic) | 635.02M606.64M | +4.7% |
| Shares Outstanding (Diluted) | 635.02M606.64M | +4.7% |
05—Questions
Frequently Asked Questions
What was Roblox's revenue and net income in Q1 2024?
Roblox reported revenue of $801.3 million for the first quarter of 2024, representing a 22% increase year-over-year. The company continued to operate at a net loss, with a net loss attributable to common stockholders of $270.6 million for the quarter.
How did Roblox's user engagement metrics perform?
Roblox saw growth in its user engagement metrics. Average Daily Active Users (DAUs) increased, and the company noted a rise in average bookings per DAU, indicating improved monetization per user.
What is the impact of the change in the estimated average lifetime of a paying user?
Roblox adjusted its estimated average lifetime of a paying user from 28 months to 27 months, effective April 1, 2024. This change is expected to increase revenue and cost of revenue by approximately $58.9 million and $12.4 million, respectively, in the second quarter of 2024, and by $98.0 million and $20.4 million for the full year 2024.
What is the current cash position and free cash flow?
Roblox maintained a strong liquidity position with cash and cash equivalents and short-term and long-term investments totaling $3.5 billion as of March 31, 2024. The company generated $191.1 million in free cash flow during the first quarter of 2024, a significant increase from $81.9 million in the prior year period.
What are the significant expenses impacting Roblox's profitability?
Key expenses impacting Roblox's profitability include cost of revenue, developer exchange fees, infrastructure and trust & safety, and research and development. Notably, stock-based compensation expense was a significant factor, totaling $240.5 million for the quarter, predominantly within research and development.
06—Continue