01—Abstract
Summary
Summary of the 10-Q filed August 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Roblox Corporation (RBLX) reported its financial results for the quarter ended June 29, 2024.
The company experienced a significant increase in revenue, up 31%a year-over-year for the quarter and 27% for the six-month period. This growth was driven by higher amortization of prior period deferred revenue and increased bookings, notably fueled by a substantial rise in daily unique paying users.
Despite revenue growth, the company continued to report a net loss, though the loss per share improved compared to the prior year's comparable periods. Investments in research and development and infrastructure remain high, reflecting the company's commitment to platform innovation and user experience.
02—Key points
Key Highlights
- Revenue increased by 31% to $893.5 million for the three months ended June 30, 2024, compared to $680.8 million in the prior year period.
- Bookings, a key non-GAAP measure, reached $955.2 million for the quarter, an increase of 22% year-over-year.
- Daily active users (DAUs) continue to grow, although specific numbers for the quarter were not provided in the extracted text, the increase in paying users suggests overall platform engagement.
- The company reported a net loss of $207.2 million for the quarter, an improvement from the $284.8 million net loss in the same period last year.
- Stock-based compensation expense remained substantial, totaling $251.9 million for the quarter, reflecting ongoing investment in employee compensation.
- Free cash flow was positive at $302.6 million for the six months ended June 30, 2024, a significant increase from -$13.6 million in the prior year period.
- The company adjusted its estimated average lifetime of a paying user from 28 months to 27 months, which increased revenue and cost of revenue by $58.9 million and $12.4 million respectively for the quarter.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2024, Roblox lost $0.23.
- Revenue$893.5M100.0%
- Cost of revenue−$198.6M22.2%
- Gross profit$695.0M77.8%
- Operating costs−$932.9M104.4%
- Operating income−$237.9M26.6%
- Interest, other & tax$32.1M3.6%
- Net income−$205.9M23.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 2, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $893.54M$680.77M | +31.3% |
| Cost of Revenue | $198.56M$162.03M | +22.5% |
| Gross Profit | $694.99M$518.74M | +34.0% |
| R&D Expenses | $361.68M$315.32M | +14.7% |
| Operating Expenses | $1.13B$994.75M | +13.7% |
| Operating Income | -$237.95M-$313.99M | +24.2% |
| Net Income | -$205.88M-$282.78M | +27.2% |
| EPS (Basic) | $-0.32$-0.46 | +30.4% |
| EPS (Diluted) | $-0.32$-0.46 | +30.4% |
| Shares Outstanding (Basic) | 642.81M612.69M | +4.9% |
| Shares Outstanding (Diluted) | 642.81M612.69M | +4.9% |
05—Questions
Frequently Asked Questions
What was Roblox's revenue performance in the second quarter of 2024?
Roblox reported a revenue of $893.5 million for the three months ended June 30, 2024, representing a 31% increase compared to $680.8 million in the same period of 2023. This growth was driven by higher amortization of prior period deferred revenue and an increase in bookings, partly due to a change in the estimated average lifetime of a paying user and an increase in daily unique paying users.
Is Roblox profitable?
Roblox is not currently profitable on a net income basis. For the three months ended June 30, 2024, the company reported a net loss attributable to common stockholders of $205.9 million. While this represents an improvement from the $282.8 million net loss in the prior year quarter, the company continues to invest heavily in growth and development, leading to ongoing net losses.
How is Roblox managing its expenses?
Roblox is managing its expenses by investing in key areas like infrastructure and R&D to drive platform innovation and user experience. While total costs and expenses increased, they grew at a slower pace than revenue for the quarter. For instance, Infrastructure and trust & safety expenses decreased slightly year-over-year for the quarter. The company also notes efforts to moderate headcount growth in certain areas to drive operating leverage.
What is the significance of the change in the estimated average lifetime of a paying user?
Roblox changed its estimated average lifetime of a paying user from 28 months to 27 months in the second quarter of 2024. This accounting estimate change, used in revenue recognition for durable virtual items, resulted in an increase in revenue by $58.9 million and cost of revenue by $12.4 million for the quarter. The company states this change was due to various factors including the natural attrition of older payer cohorts and macroeconomic influences.
06—Continue