Roblox Corporation
CEO : Mr. David Baszucki
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 1.8% YoY | 116.2% | 92.0% | 2023-02-15 |
David Baszucki says,
Q4 2022 Earnings Report Highlights
- Q4 bookings: $899 million, up 17% YoY or 21% on constant currency
- January 2023 bookings: up 21% YoY
- Global growth in January with Europe and APAC up 29% YoY
- 17-24 year old segment grew at 39% YoY for bookings
- Highest ever DAUs at 65 million DAU in January
- EBITDA in Q4: $183 million or 20.3% of bookings
- Nearly no cash burn in 2022, roughly negative 0.5% cash
Focused on Four Growth Vectors
- Bringing people together all around the world
- Expanding platform to encompass people of all ages
- Expansion into education, concerts, and communication
- Vibrant and growing economy
Immersion and Innovation Stack
- Next generation of immersive communication with voice and facial animation
- Continual improvements in app performance and cloud infrastructure
- Dynamic heads and facial animation rollout
- Transition to all UGC catalog and avatar system
- Experience guidelines for safety and stability
Growing Partnerships
- Active developers up 33% YoY
- Over 70 experiences with one billion visits by end of 2022
- Partnerships with brands including NFL, FIFA, and Netflix
- Immersive educational efforts with institutions like the Museum of Science in Boston
- Support for child safety legislation in California
Mike Guthrie says,
Strong Growth in Payers
- RBLX reached an all-time high of 13.4 million payers in Q4 2022, highest amount of returning payers ever.
- More new payers were added than ever before, except for the first quarter of COVID.
- Payer conversion is healthy and increasing, with more users becoming payers than ever before.
Monetization Strong
- Monetization per payer in Q4 2022 was up significantly and as strong as it’s ever been.
Infrastructure Investments
- RBLX spent over $400 million on investing in infrastructure, primarily related to their data center in Ashburn, Virginia in 2022.
- Capital expenditures related to infrastructure will be down significantly in 2023, somewhere between 25% and 30% lower this year.
Cash Flow Neutral
- RBLX was able to run the company effectively cash flow neutral for the year, which was a goal of theirs internally.
Frequent Engagement
- RBLX’s focus on frequency, engagement, and monetization has resulted in strong results, as seen in the growth of payers and monetization.
Q & A sessions,
ML Opportunities
- ML acceleration for Lua code and 3D models
- Innovation around natural language-based Avatar creation
- Opportunities in customer service, NPC performance, search and discovery, and creation of 3D materials
Cost Structure
- COGS and payment processing costs have been coming down as a percentage of bookings
- Investment in developer community has increased, with returns seen in more and better content
- Fixed costs are in infrastructure and human capital investment, with a slower rate of hiring this year
- Infrastructure investments and trust and safety are high priorities driven by user growth
- Investments are high ROI and show operating leverage as top line keeps growing
No bad stock 