Roblox Corporation is a company based in San Mateo, California, founded in 2004 by David Baszucki and Erik Cassel. It created an online game platform where users can make and play games. This platform, launched in 2006, has become very popular with over 164 million users every month as of 2020.
Roblox is free to play, but players can buy things within the games using a virtual currency called Robux. The platform has millions of user-made games, and a large virtual economy based on these items and Robux. Roblox also hosts virtual events like concerts. Although successful, the company has faced some criticism for how it handles content and certain business practices.
Roblox Fiscal Q4 2024
Roblox (RBLX) announced a 32% revenue increase in Q4 2024, which came in slightly below expectations. However, the reported net loss was better than anticipated.
Q4 2024 Highlights
- Revenue was $988.2 million, up 32% year-over-year.
- Bookings were $1,361.6 million, up 21% year-over-year.
- Net loss attributable to common stockholders was $219.6 million, while consolidated net loss was $221.1 million.
- Free cash flow was $120.6 million, up 54% year-over-year.
- Average Daily Active Users (“DAUs”) were 85.3 million, up 19% year-over-year.
- Average monthly unique payers were 18.9 million, up 19% year-over-year, and average bookings per monthly unique payer was $23.97, up 1% year-over-year.
- Hours engaged were 18.7 billion, up 21% year-over-year.
Guidance
First Quarter 2025:
- Revenue: Between $990 million and $1,015 million.
- Bookings: Between $1,125 million and $1,150 million.
Full Year 2025:
- Revenue: Between $4,245 million and $4,345 million.
- Bookings: Between $5,200 million and $5,300 million.
Boards Statements
David Baszucki, founder and CEO of Roblox, announced Roblox had a strong 2024, driven by its commitment to innovation and community. The company is building a platform that goes beyond technology.
As Roblox aims to support 10% of the global gaming content market, it will continue investing in its virtual economy, app performance, and AI-powered discovery and safety, empowering creators and enhancing the user experience
Michael Guthrie, chief financial officer of Roblox stated that financial performance for Q4 2024 met or exceeded the guidance. Furthermore, Roblox surpassed the long-term financial goals.
For the fiscal year 2024, the company saw revenue and bookings grow by 29% and 24%, respectively, year-over-year. Additionally, free cash flow saw a significant increase of 417%, highlighting the operating leverage within Roblox’s business model.
Impact on the Stock Market
Roblox’s stock price dropped by 18% after they announced their earnings. Despite raising their full-year revenue expectations, they lowered their forecast for bookings, which measures how much users are spending on the platform.
This, combined with a decline in daily active users, worried investors. Additionally, the company’s cleanup of bots and inactive accounts may have contributed to the drop in user numbers.
