FALSE000131509800013150982024-07-312024-07-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________
FORM 8-K
____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 1, 2024
____________________________
Roblox Corporation
(Exact name of Registrant as Specified in Its Charter)
____________________________
Delaware001-3976320-0991664
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
970 Park Place,
San Mateo, California
94403
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (888) 858-2569
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Class A Common Stock, $0.0001 par valueRBLXThe New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02    Results of Operations and Financial Condition.
On August 1, 2024, Roblox Corporation (the “Company”) issued a press release announcing financial results for its second quarter ended June 30, 2024 as well as third quarter and updated full year 2024 guidance. The Company also posted a shareholder letter and supplemental materials on its investor relations website (ir.roblox.com). A copy of the press release and shareholder letter are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein. Information on the Company’s website is not, and will not be deemed, a part of this report or incorporated into this or any other filings that the Company makes with the Securities and Exchange Commission.
Item 7.01    Regulation FD Disclosure.
The Company also reported third quarter and updated full year 2024 guidance in its press release and shareholder letter, which were issued on August 1, 2024, copies of which are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.
The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01    Financial Statements and Exhibits.
(d)Exhibits
Exhibit
Number
Description
99.1
99.2
104Cover Page Interactive Data File (formatted as inline XBRL)
1


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ROBLOX CORPORATION
Date: August 1, 2024
By:/s/ Michael Guthrie
Michael Guthrie
Chief Financial Officer
(Principal Financial Officer)
2


Exhibit 99.1
roblox_logox2022-11a.jpg
Roblox Reports Second Quarter 2024 Financial Results
Strong Growth Across Core Financial and Operating Metrics; Revenue1 up 31% year-over-year, Bookings2 up 22% year-over-year, record DAUs up 21% year-over-year and record Hours Engaged up 24% year-over-year
SAN MATEO, Calif., August 1, 2024 - Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its second quarter 2024 financial and operational results and issued its third quarter and updated full year 2024 guidance today. Separately, Roblox posted a letter to shareholders and supplemental materials on the Roblox investor relations website at ir.roblox.com.
Second Quarter 2024 Financial, Operational, and Liquidity Highlights1
•Revenue was $893.5 million, up 31% year-over-year.
•Bookings2 were $955.2 million, up 22% year-over-year.
•Net loss attributable to common stockholders was $205.9 million, while consolidated net loss was $207.2 million.
•Adjusted EBITDA2 was $66.5 million, which excludes adjustments for increases in deferred revenue and deferred cost of revenue of $66.7 million and $(18.8) million, respectively, or a total change in deferred of $47.9 million.
•Net cash and cash equivalents provided by operating activities was $151.4 million, up 433% year-over-year, while free cash flow2 was $111.6 million, compared to $(95.5) million in the second quarter of 2023.
•Average Daily Active Users (“DAUs”) were 79.5 million, up 21% year-over-year.
•Average monthly unique payers were 16.5 million, up 22% year-over-year, and average bookings per monthly unique payer was $19.34.
•Hours engaged were 17.4 billion, up 24% year-over-year.
•Average bookings per DAU was $12.01, up 1% year-over-year.
•Cash and cash equivalents, short-term investments, and long-term investments totaled $3.6 billion; net liquidity3 was $2.6 billion.
“Our strong Q2 growth across all core metrics is driven by diverse and high quality content. As a UGC platform, we support a large and motivated creator community that continues to thrive. The dynamic Roblox content ecosystem is unique and our platform continues to attract users of all ages from across the globe. Going forward, we will continue to invest in our core platform to help our creator community build better and safer experiences and reach more people,” said David Baszucki, founder and CEO of Roblox.
“The combination of strong topline growth, fixed cost discipline, and reduced capital expenditures allowed us to deliver significantly more cash flow in Q2 2024 than in Q2 2023. Net cash and cash equivalents provided by operating activities were $151.4 million in Q2 2024, up 433% from $28.4 million in Q2 2023. Free cash flow for the quarter was $111.6 million, an increase of $207.1 million over free cash flow of $(95.5) million in Q2 2023,” said Michael Guthrie, chief financial officer of Roblox.
1 At the onset of the second quarter of 2024, we updated our estimated paying user life from 28 months to 27 months. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the change resulted in an increase in revenue and cost of revenue during the three months ended June 30, 2024 of $58.9 million and $12.4 million, respectively. Refer to “Basis of Presentation and Summary of Significant Accounting Policies — Revenue Recognition” as described in the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for further background on the Company’s process to estimate the average lifetime of a payer.
2 Bookings, Adjusted EBITDA, and free cash flow are non-GAAP financial measures that we believe are useful in evaluating our performance and are presented for supplemental information purposes only and should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. For further information, please refer to definitions and reconciliations provided below and in our annual and quarterly SEC filings.
3 Net liquidity represents cash and cash equivalents, short-term investments, and long-term investments, less long-term debt, net.


Forward Looking Guidance4
Roblox provides its third quarter and updated full year 2024 GAAP and non-GAAP guidance:
Third Quarter 2024 Guidance
•Revenue between $860 million and $885 million.
•Bookings between $1,000 million and $1,025 million.
•Consolidated net loss between $(275) million and $(255) million.
•Adjusted EBITDA between $22 million and $42 million, which excludes adjustments for:
◦Increase in deferred revenue of $145 million.
◦Increase in deferred cost of revenue of $(32) million.
◦The total of these changes in deferrals of $113 million.
•Net cash and cash equivalents provided by operating activities between $147 million and $162 million.
•Capital expenditures and purchases of intangible assets of $(42) million.
•Free cash flow between $105 million and $120 million.
Updated Full Year 2024 Guidance
•Revenue between $3,490 million and $3,540 million.
•Bookings between $4,180 million and $4,230 million.
•Consolidated net loss between $(1,089) million and $(1,049) million.
•Adjusted EBITDA between $92 million and $132 million, which excludes adjustments for:
◦Increase in deferred revenue of $711 million.
◦Increase in deferred cost of revenue of $(163) million.
◦The total of these changes in deferrals of $548 million.
•Net cash and cash equivalents provided by operating activities between $685 million and $715 million.
•Capital expenditures and purchases of intangible assets of $(180) million.
•Free cash flow between $505 million and $535 million.
Earnings Q&A Session
Roblox will host a live Q&A session to answer questions regarding its second quarter 2024 results on Thursday, August 1, 2024 at 5:30 a.m. Pacific Time/8:30 a.m. Eastern Time. The webcast will be open to the public at ir.roblox.com or by clicking here.
4 Beginning April 1, 2024, the estimated average lifetime of a payer changed from 28 months to 27 months, which is reflected in our third quarter and updated full year 2024 GAAP and non-GAAP guidance. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the April 1, 2024 change in estimated average lifetime of a payer will result in an increase in revenue and cost of revenue of $26.4 and $5.4 million, respectively, during the third quarter of 2024 and an increase in revenue and cost of revenue of $98.0 million and $20.4 million, respectively, during the full year 2024. Refer to “Basis of Presentation and Summary of Significant Accounting Policies — Revenue Recognition” as described in the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for further background on the Company’s process to estimate the average lifetime of a payer.


Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion global DAUs, our efforts to improve the Roblox Platform, our immersive and video advertising efforts, including our ads manager and independent measurement partnerships, our efforts to provide a safe online environment for children, our efforts regarding content curation, live operations and platform-wide events, our efforts regarding real-world shopping, the use of artificial intelligence (“AI”) on our platform, our economy and product efforts related to creator earnings and platform monetization, our sponsored experiences, branding and new partnerships and our roadmap with respect to each, our business, product, strategy and user growth, our investment strategy, including our opportunities for and expectations of improvements in financial and operating metrics, including operating leverage, margin, free cash flow, operating expenses and capital expenditures, our expectation of successfully executing such strategies and plans, disclosures regarding the seasonality of our business, disclosures and future growth rates, benefits from agreements with third-party cloud providers, disclosures about our infrastructure efficiency initiatives, changes to our estimated average lifetime of a paying user and the resulting effect on revenue, cost of revenue, deferred revenue and deferred cost of revenue, our expectations of future net losses and net cash and cash equivalents provided by operating activities, statements by our Chief Executive Officer and Chief Financial Officer, and our outlook and guidance for third quarter and full year 2024, and future periods. These forward-looking statements are made as of the date they were first issued and were based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “vision,” “envision,” “evolving,” “drive,” “anticipate,” “intend,” “maintain,” “should,” “believe,” “continue,” “plan,” “goal,” “opportunity,” “estimate,” “predict,” “may,” “will,” “could,” and “would,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including our annual reports on Form 10-K, our quarterly reports on Form 10-Q and other filings and reports we make with the SEC from time to time. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs, including the repayment of our senior notes; the demand for our platform in general; our ability to retain and increase our number of users, developers, and creators; the impact of inflation and global economic conditions on our operations; the impact of changing legal and regulatory requirements on our business, including the use of verified parental consent; our ability to develop enhancements to our platform, and bring them to market in a timely manner; our ability to develop and protect our brand and build new partnerships; any misuse of user data or other undesirable activity by third parties on our platform; our ability to maintain the security and availability of our platform; our ability to detect and minimize unauthorized use of our platform; and the impact of AI on our platform, users, creators, and developers. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from our expectations is included in the reports we have filed or will file with the SEC, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q.
The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.


ROBLOX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par values)
(unaudited)
 As of
 
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents$966,406 $678,466 
Short-term investments1,445,689 1,514,808 
Accounts receivable—net of allowances345,809 505,769 
Prepaid expenses and other current assets87,100 74,549 
Deferred cost of revenue, current portion559,278 501,821 
Total current assets3,404,282 3,275,413 
Long-term investments1,189,135 1,043,399 
Property and equipment—net675,075 695,360 
Operating lease right-of-use assets722,493 665,107 
Deferred cost of revenue, long-term277,614 283,326 
Intangible assets, net43,113 53,060 
Goodwill141,900 142,129 
Other assets16,904 10,284 
Total assets$6,470,516 $6,168,078 
Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable$38,877 $60,087 
Accrued expenses and other current liabilities269,839 271,121 
Developer exchange liability330,289 314,866 
Deferred revenue—current portion2,662,087 2,406,292 
Total current liabilities3,301,092 3,052,366 
Deferred revenue—net of current portion1,311,787 1,373,250 
Operating lease liabilities706,018 646,506 
Long-term debt, net1,005,679 1,005,000 
Other long-term liabilities34,639 22,330 
Total liabilities6,359,215 6,099,452 
Stockholders’ equity
Common stock, $0.0001 par value; 5,000,000 authorized as of June 30, 2024 and December 31, 2023, 646,611 and 631,221 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively; Class A common stock—4,935,000 shares authorized as of June 30, 2024 and December 31, 2023, 597,933 and 581,135 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively; Class B common stock—65,000 shares authorized as of June 30, 2024 and December 31, 2023, 48,678 and 50,086 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
61 61 
Additional paid-in capital3,664,414 3,134,946 
Accumulated other comprehensive income/(loss)
(6,229)1,536 
Accumulated deficit(3,536,740)(3,060,253)
Total Roblox Corporation Stockholders’ equity121,506 76,290 
Noncontrolling interests(10,205)(7,664)
Total Stockholders’ equity111,301 68,626 
Total Liabilities and Stockholders’ equity$6,470,516 $6,168,078 


ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
 Three Months EndedSix Months Ended
June 30,June 30,
 2024202320242023
Revenue(1)
$893,543 $680,766 $1,694,843 $1,336,110 
Cost and expenses:
Cost of revenue(1)(2)
198,557 162,029 377,423 313,870 
Developer exchange fees208,270 165,843 410,675 348,283 
Infrastructure and trust & safety221,064 225,039 447,998 436,083 
Research and development361,684 315,319 723,749 590,856 
General and administrative105,627 96,197 203,451 193,771 
Sales and marketing36,290 30,328 71,824 57,083 
Total cost and expenses1,131,492 994,755 2,235,120 1,939,946 
Loss from operations(237,949)(313,989)(540,277)(603,836)
Interest income44,383 34,764 86,553 65,846 
Interest expense(10,204)(10,129)(20,567)(20,141)
Other income/(expense), net(3,315)3,277 (3,661)2,837 
Loss before income taxes(207,085)(286,077)(477,952)(555,294)
Provision for/(benefit from) income taxes110 (1,236)1,163 (505)
Consolidated net loss(207,195)(284,841)(479,115)(554,789)
Net loss attributable to noncontrolling interests(1,312)(2,064)(2,628)(3,699)
Net loss attributable to common stockholders$(205,883)$(282,777)$(476,487)$(551,090)
Net loss per share attributable to common stockholders, basic and diluted$(0.32)$(0.46)$(0.75)$(0.90)
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted642,814 612,689 638,917 609,680 
(1)At the onset of the second quarter of 2024, we updated our estimated paying user life from 28 months to 27 months. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the change resulted in an increase in revenue and cost of revenue during the three months ended June 30, 2024 of $58.9 million and $12.4 million, respectively. This change will increase our fiscal year 2024 revenue and cost of revenue by $98.0 million and $20.4 million, respectively. Refer to “Basis of Presentation and Summary of Significant Accounting Policies — Revenue Recognition” as described in the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for further background on the Company’s process to estimate the average lifetime of a payer.
(2)Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.


ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Cash flows from operating activities:
Consolidated net loss$(207,195)$(284,841)$(479,115)$(554,789)
Adjustments to reconcile net loss including noncontrolling interests to net cash and cash equivalents provided by operations:
Depreciation and amortization expense52,772 52,599 106,513 100,011 
Stock-based compensation expense251,891 212,362 492,393 397,266 
Operating lease non-cash expense29,766 23,509 57,488 44,753 
(Accretion)/amortization on marketable securities, net(19,535)(19,623)(39,533)(31,745)
Amortization of debt issuance costs341 327 679 651 
Impairment expense, (gain)/loss on investment and other asset sales, and other, net380 (2,067)443 6,169 
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable(14,023)9,435 160,045 122,628 
Prepaid expenses and other current assets2,355 2,200 (12,955)(6,159)
Deferred cost of revenue(19,247)(18,460)(52,615)(38,597)
Other assets(6,717)(4,533)(6,666)(6,691)
Accounts payable(5,252)(16,731)(8,828)1,576 
Accrued expenses and other current liabilities(14,295)(5,340)(23,516)(22,344)
Developer exchange liability37,613 (7,291)15,423 (11,156)
Deferred revenue68,466 105,372 197,650 229,155 
Operating lease liabilities(10,226)(18,844)(29,329)(30,843)
Other long-term liabilities4,355 316 12,318 2,286 
Net cash and cash equivalents provided by operating activities151,449 28,390 390,395 202,171 
Cash flows from investing activities:
Acquisition of property and equipment(39,701)(110,915)(86,381)(202,274)
Payments related to business combination, net of cash acquired(2,000)— (2,000)— 
Purchases of intangible assets(170)(13,000)(1,370)(13,500)
Purchases of investments(834,026)(702,560)(1,866,782)(3,042,760)
Maturities of investments715,500 324,010 1,589,320 324,010 
Sales of investments105,074 145,000 233,306 229,279 
Net cash and cash equivalents used in investing activities(55,323)(357,465)(133,907)(2,705,245)
Cash flows from financing activities:
Proceeds from issuance of common stock4,577 5,635 37,247 31,107 
Proceeds from debt issuances— 14,700 — 14,700 
Financing payments related to acquisitions— — (4,450)(750)
Net cash and cash equivalents provided by financing activities4,577 20,335 32,797 45,057 
Effect of exchange rate changes on cash and cash equivalents(711)875 (1,345)807 
Net increase/(decrease) in cash and cash equivalents99,992 (307,865)287,940 (2,457,210)
Cash and cash equivalents
Beginning of period866,414 828,129 678,466 2,977,474 
End of period$966,406 $520,264 $966,406 $520,264 


Non-GAAP Financial Measures
This press release and the accompanying tables contain the non-GAAP financial measure bookings, Adjusted EBITDA, and free cash flow.
We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance.
Bookings is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Substantially all of our bookings are generated from sales of virtual currency, which can ultimately be converted to virtual items on the Roblox Platform. Sales of virtual currency reflected as bookings include one-time purchases and monthly subscriptions purchased via payment processors or through prepaid cards. Bookings also include an insignificant amount from advertising and licensing arrangements. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Adjusted EBITDA represents our GAAP consolidated net loss, excluding interest income, interest expense, other income/(expense), provision for/(benefit from) income taxes, depreciation and amortization expense, stock-based compensation expense, and certain other nonrecurring adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted EBITDA is useful to investors and management in understanding our ongoing operations and ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. Free cash flow represents the net cash and cash equivalents provided by operating activities less purchases of property, equipment, and intangible assets acquired through asset acquisitions. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property, equipment, and intangible assets acquired through asset acquisitions, can be used for strategic initiatives.
Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.
Reconciliation tables of the most comparable GAAP financial measure to the non-GAAP financial measure used in this press release are included below. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measures.


GAAP to Non-GAAP Financial Measures Reconciliations
The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands, unaudited):
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Reconciliation of revenue to bookings:
Revenue$893,543 $680,766 $1,694,843 $1,336,110 
Add (deduct):
Change in deferred revenue66,728 105,372 194,332 229,155 
Other(5,093)(5,452)(10,240)(10,760)
Bookings$955,178 $780,686 $1,878,935 $1,554,505 
The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands, unaudited):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Reconciliation of consolidated net loss to Adjusted EBITDA:
Consolidated net loss$(207,195)$(284,841)$(479,115)$(554,789)
Add (deduct):
Interest income(44,383)(34,764)(86,553)(65,846)
Interest expense10,204 10,129 20,567 20,141 
Other (income)/expense, net3,315 (3,277)3,661 (2,837)
Provision for/(benefit from) income taxes110 (1,236)1,163 (505)
Depreciation and amortization expense52,772 52,599 106,513 100,011 
Stock-based compensation expense251,891 212,362 492,393 397,266 
RTO severance charge(A)
(189)— 993 — 
Other non-cash charges(B)
— — — 6,988 
Adjusted EBITDA$66,525 $(49,028)$59,622 $(99,571)
(A)Relates to cash severance costs associated with the Company’s return-to-office (“RTO”) plan announced in October 2023, which requires a subset of the Company’s remote employees to begin working from the San Mateo headquarters for three days a week, beginning in the summer of 2024.
(B)Includes impairment expenses related to certain operating lease right-of-use assets and related property and equipment.


The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands, unaudited):
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow:
Net cash and cash equivalents provided by operating activities$151,449 $28,390 $390,395 $202,171 
Deduct:
Acquisition of property and equipment(39,701)(110,915)(86,381)(202,274)
Purchases of intangible assets(170)(13,000)(1,370)(13,500)
Free cash flow$111,578 $(95,525)$302,644 $(13,603)


Forward Looking Guidance5: GAAP to Non-GAAP Financial Measures Reconciliations
The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands):
Guidance
Updated Guidance
Three Months Ended September 30, 2024Twelve Months Ended December 31, 2024
LowHighLowHigh
Reconciliation of revenue to bookings:
Revenue$860,000 $885,000 $3,490,000 $3,540,000 
Add (deduct):
Change in deferred revenue145,000 145,000 711,000 711,000 
Other(5,000)(5,000)(21,000)(21,000)
Bookings$1,000,000 $1,025,000 $4,180,000 $4,230,000 
The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands):
Guidance
Updated Guidance
Three Months Ended September 30, 2024Twelve Months Ended December 31, 2024
LowHighLowHigh
Reconciliation of consolidated net loss to Adjusted EBITDA:
Consolidated net loss$(275,000)$(255,000)$(1,089,000)$(1,049,000)
Add (deduct):
Interest income(40,000)(40,000)(167,000)(167,000)
Interest expense11,000 11,000 42,000 42,000 
Other (income)/expense, net— — 4,000 4,000 
Provision for/(benefit from) income taxes1,000 1,000 4,000 4,000 
Depreciation and amortization expense55,000 55,000 217,000 217,000 
Stock-based compensation expense270,000 270,000 1,080,000 1,080,000 
RTO severance charge (A)
— — 1,000 1,000 
Adjusted EBITDA
$22,000 $42,000 $92,000 $132,000 
(A)Relates to cash severance costs associated with the Company’s RTO plan announced in October 2023, which requires a subset of the Company’s remote employees to begin working from the San Mateo headquarters for three days a week, beginning in the summer of 2024.
5 Beginning April 1, 2024, the estimated average lifetime of a payer changed from 28 months to 27 months, which is reflected in our third quarter and updated full year 2024 GAAP and non-GAAP guidance. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the April 1, 2024 change in estimated average lifetime of a payer will result in an increase in revenue and cost of revenue of $26.4 million and $5.4 million, respectively, during the third quarter of 2024 and an increase in revenue and cost of revenue of $98.0 million and $20.4 million, respectively, during the full year 2024. Refer to “Basis of Presentation and Summary of Significant Accounting Policies — Revenue Recognition” as described in the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for further background on the Company’s process to estimate the average lifetime of a payer.


The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands):
Guidance
Updated Guidance
Three Months Ended September 30, 2024Twelve Months Ended December 31, 2024
LowHighLowHigh
Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow:
Net cash and cash equivalents provided by operating activities$147,000 $162,000 $685,000 $715,000 
Deduct:
Acquisition of property and equipment(42,000)(42,000)(178,000)(178,000)
Purchase of intangible assets— — (2,000)(2,000)
Free cash flow$105,000 $120,000 $505,000 $535,000 


About Roblox
Roblox is an immersive platform for connection and communication. Every day, millions of people come to Roblox to create, play, work, learn, and connect with each other in experiences built by our global community of creators. Our vision is to reimagine the way people come together– in a world that is safe, civil, and optimistic. To achieve this vision, we are building an innovative company that, together with the Roblox community, has the ability to strengthen our social fabric and support economic growth for people around the world. For more about Roblox, please visit corp.roblox.com.
CONTACTS
Stefanie Notaney
Roblox Corporate Communications
press@roblox.com
ROBLOX and the Roblox logo are among the registered and unregistered trademarks of Roblox Corporation in the United States and other countries. © 2024 Roblox Corporation. All rights reserved.
Source: Roblox Corporation

Shareholder Letter Q2 2024 August 1, 2024 Exhibit 99.2

 
To Our Shareholders: Our performance in Q2 2024 was strong across our key financial and operating metrics and we are carrying significant momentum into Q3. We delivered results beyond the financial targets communicated at our Investor Day last November: 1. Compounding top line by 20% per year through at least 2027 2. Targeting margin expansion of 100 - 300 basis points each year 3. Moderating capital expenditures now that we are through a significant investment cycle On our May earnings call, we discussed steps we took to offset unseasonable growth rate declines that started in Q1. Those actions, which are ongoing, included: a regular program of platform events such as The Hunt and The Classic; improvements to our AI-driven discovery algorithm and the positioning of various content types on the Homepage; improvements to the virtual economy such as dynamic price floors in our Marketplace; and continued focus on performance and quality improvements for our app and experiences including faster frame rates, better stability, and higher graphics quality. At the time of the May earnings call, we believed that these steps were having positive impacts on our operating results as Daily Active Users (“DAUsˮ), Hours Engaged (“Hoursˮ), and Bookings in the US & Canada returned to 20% year-over-year growth or higher starting in mid-April and through the first week of May. As demonstrated by our results today, the positive impacts of these ongoing efforts continued through the balance of Q2 and the first month of Q3. In Q2 2024, revenue grew by 31% year-over-year to $894 million, while bookings grew by 22% year-over-year to $955 million. DAUs reached 79.5 million, an increase of 21% over Q2 2023, and Hours reached 17.4 billion, an increase of 24% over Q2 2023. DAUs and Hours are both all-time highs for the platform. DAUs and Hours growth in Q2 2024 accelerated sequentially over the growth rates in Q1 2024 across all regions and ages. DAU growth in the US & Canada, our most mature market, was at the highest rate since Q1 2021. Further, in Q2 2024, Monthly Unique Payers reached an all-time high of 16.5 million, an increase of 22% over Q2 2023. As top line growth accelerated, we continued to manage our fixed costs and capital expenditures. In Q2 2024, certain infrastructure and trust & safety expenses were 8% lower than they were in Q2 2023 due to internal efficiency initiatives, the shift to AI-driven moderation which increased the accuracy of our safety and civility systems, and optimizing infrastructure. As a result, this expense amounted to 14% of revenue and 13% of bookings in Q2 2024 versus 19% of revenue and 17% of bookings in Q2 2023. Personnel costs, exclusive of stock-based compensation expense, were 1

 
essentially flat in Q2 2024 compared with Q2 2023 and amounted to 23% of revenue and 21% of bookings in Q2 2024 compared to 30% of revenue and 26% of bookings in the same quarter last year. Further, capital expenditures in Q2 2024 were $39.9 million, down from $123.9 million in Q2 2023. The combination of strong top line growth, fixed cost discipline, and reduced capital expenditures allowed us to deliver significantly more cash flow in Q2 2024 than in Q2 2023. Net cash and cash equivalents provided by operating activities were $151.4 million in Q2 2024, up 433% from $28.4 million in Q2 2023. Free cash flow for the quarter was $111.6 million, an increase of $207.1 million over free cash flow in Q2 2023 of $95.5 million. As of June 30, 2024 our cash, cash equivalents and investments totaled $3,601.2 million, up from $3,024.8 million as of June 30, 2023. Below is a summary of some of our key financial results: ● DAUs were 79.5 million, and grew by 21% over Q2 2023. Growth in Q2 was robust among all ages, but was notably strong with DAUs aged 13 years and older. Growth also remained strong among all geographies, with the US & Canada growing at its fastest rate since Q1 2021. ● Hours were 17.4 billion, and grew 24% over Q2 2023. Similar to DAUs, growth in Q2 was robust among all ages, but was notably strong with DAUs aged 13 years and older. Similarly, growth remained strong across all geographies. ● Revenue was $893.5 million in Q2 2024 and grew by 31% over revenue in Q2 2023. This was above our Q2 guidance range of $855 - $880 million. Q2 2024 revenue includes an increase of revenue of $58.9 million due to the change in the estimated average lifetime of a paying user from 28 months to 27 months, which was incorporated in our Q2 guidance. ● Bookings totaled $955.2 million and grew by 22% over bookings in Q2 2023. This was above our Q2 guidance range of $870 - $900 million. ● Consolidated net loss was $207.2 million, compared to a consolidated net loss of $284.8 million in Q2 2023. This was better than our Q2 net loss guidance range of $267 million - $265 million. ● Adjusted EBITDA was $66.5 million, above our guidance range of $36 million - $38 million. Adjusted EBITDA excludes the adjustments for an increase in deferred revenue of $66.7 million and an increase in deferred cost of revenue of $18.8 million, or a total change in deferred of $47.9 million. The total change in deferred was higher than our guidance of $1114 million due to higher bookings than in our guidance numbers. 2

 
● Net cash and cash equivalents provided by operating activities was $151.4 million in Q2 2024, up 433% over Q2 2023. This was better than our guidance of $6168 million. Free cash flow was $111.6 million in Q2 2024, an increase of $207.1 million compared to $95.5 million in Q2 2023. This was above our guidance of $1623 million. Both cash flow metrics exceeded guidance due to higher than forecasted bookings combined with discipline on growth in fixed costs. Free cash flow growth also benefited from lower capital expenditures than assumed in our prior guidance. ● For the first half of 2024, net cash and cash equivalents provided by operating activities was $390.4 million, up 93% over the same period in 2023 and free cash flow was $302.6 million, an increase of $316.2 million compared to $13.6 million over the first half of 2023. ● Our fully diluted share count, consisting primarily of shares of Class A and Class B common stock issued and outstanding, stock options outstanding, and unvested RSUs outstanding, was 722.6 million shares as of June 30, 2024, an increase of just under 3% from June 30, 2023. ● Cash and cash equivalents, short-term investments, and long-term investments totalled $3,601.2 million as of June 30, 2024, up from $3,024.8 million as of June 30, 2023. Cash and cash equivalents, short-term investments, and long-term investments, net of debt, increased to $2,595.6 million as of June 30, 2024, up from $2,020.4 million as of June 30, 2023. 3

 
Looking Ahead When we listed the company, we outlined four growth vectors: growing in international markets, building a platform for all ages, expanding our platformʼs breadth of use, and growing our vibrant economy. Our Q2 2024 results demonstrate the progress weʼve made in each of these areas and we believe these four vectors will continue to drive our growth going forward. The gaming industry represents a large market with enormous headroom for us to expand our market share thereby growing DAUs, Hours and bookings at high rates for several years. We believe our UGC approach combined with several key differentiators like personalized expressive avatars, vibrant social graph, and immersive 3D communication provide a unique value proposition to make traditional gaming experiences more social and support new experiences unique to our platform. We are also always innovating behind the scenes to improve the raw performance, quality, and cost-to-serve efficiency of our core platform. We want to make it as easy as possible for creators to build better experiences and reach more users. At our upcoming Roblox Developer Conference in September we will share more about new features we are announcing to heighten these key differentiators and accelerate the future. Within the traditional gaming ecosystem, we also have a tremendous opportunity to expand content into new genres. Today, genres such as roleplay, battlegrounds, platformers and horror are popular on our platform. We want to help our creators flourish by identifying untapped areas of demand such as open world action, sports, racing and social co-opetition (see our recent genre insights blog post). Weʼre starting to see early signals of user interest within these genres, and by incentivizing creation, we believe we can tap into new demographics which will further grow our market share within the gaming landscape. At our last Investor Day we talked about expanding our economy to include advertising and commerce. During Q2 2024, we continued to make great strides with our brands, advertising and commerce initiatives. We launched our video ads product and continue to make progress with our self-serve Ads Manager product and our third party integrations with IAS and PubMatic. We also continue to experiment with our commerce roadmap with further testing with our partners at Walmart and e.l.f. Beauty. We are still in the early days, but remain on track and expect this business line to help advance the user experience, advertiser value and creator monetization on the platform. 4

 
Guidance: Our Q3 2024 bookings guidance of $1,000 million - $1,025 million implies a year-over-year growth range of 1922%. This guidance is based on our Q2 exit growth rate and the visibility we have quarter-to-date. Our Q3 2024 guidance largely assumes that the broad-based strength we have seen since the middle of April persists through the rest of Q3 2024, with an adjustment to embed some conservatism. For the full year, weʼve increased our bookings guidance range to $4,180 - $4,230 million, implying a year-over-year growth range of 1920% for 2024. The midpoint of this range is very nearly equal to the midpoint of the range we provided on our Q4 2023 call. The full year bookings guidance also assumes that the broad-based growth we saw in Q2 and the start of Q3 continues, embeds some conservatism, and recognizes that we are lapping a strong Q4 2023 that included the Playstation launch. Further, we will continue to manage our fixed costs and capital expenditures while investing in platform safety and our key growth vectors. Our Q3 2024 operating cash flow guidance implies year-over-year growth of 3044%, and free cash flow growth of 76102%. Our FY 2024 guidance implies year-over-year operating cash flow growth of 5056% and free cash flow growth of 307331%. Management guidance is as follows: Q3 2024 ● Revenue between $860 million - $885 million, or year-over-year growth of 2124%. ● Bookings between $1,000 million - $1,025 million, or year-over-year growth of 1922%. ● Consolidated net loss between $275 million - $255 million, an improvement compared to $278.8 million in Q3 2023. ● Adjusted EBITDA between $22 million - $42 million, an increase compared to $26.4 million in Q3 2023, which excludes adjustments for: - Increase in deferred revenue of $145 million. - Increase in deferred cost of revenue of $32 million. - The total of these changes in deferrals of $113 million. ● Net cash and cash equivalents provided by operating activities between $147 million - $162 million, a year-over-year increase of 37% at the midpoint of guidance. ● Capital expenditures of $42 million. ● Free cash flow between $105 million - $120 million, a year-over-year increase of 89% at the midpoint of guidance. 5

 
Fiscal 2024 ● Revenuebetween $3,490 million - $3,540 million, or year-over-year growth of 2526% ● Bookings between $4,180 million - $4,230 million, or year-over-year growth of 1920%, and an increase of 3.8% at the midpoint versus guidance last quarter. The midpoint of this revised guidance is basically equal to the midpoint of the original FY 2024 bookings guidance. ● Consolidated net loss between $1,089 million - $1,049 million, a decrease compared to $1,158.9 million in FY2023. ● Adjusted EBITDA between $92 million - $132 million, an increase compared to $170.7 million in FY2023, which excludes adjustments for: - Increase in deferred revenue of $711 million. - Increase in deferred cost of revenue of $163 million. - The total of these changes in deferrals of $548 million. ● Net cash and cash equivalents provided by operating activities between $685 million - $715 million, a year-over-year growth of 53% at the midpoint, and an increase of 24% at the midpoint over guidance last quarter. ● Capital expenditures of $180 million, a year-over-year decrease of 46%. The guidance is consistent with the guidance provided during our Q1 2024 earnings report. ● Free cash flow between $505 million - $535 million, or year-over-year increase of 319% at the midpoint. This represents an increase of 35% at the midpoint versus the guidance provided last quarter. Note: On April 1, 2024, the estimated average lifetime of a payer changed from 28 months to 27 months, which is reflected in our third quarter and updated full year 2024 guidance. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the April 1, 2024 change in estimated average lifetime of a payer will result in an increase in revenue and cost of revenue of $26.4 and $5.4 million, respectively, during the third quarter of 2024 and an increase in revenue and cost of revenue of $98.0 million and $20.4 million, respectively, during the full year 2024. 6

 
Liquidity: As of June 30, 2024, the balances of our liquidity components were: ● Cash and cash equivalents: $966.4 million ● Short-term investments: $1,445.7 million ● Long-term investments: $1,189.1 million ● Carrying amount of the senior notes due 2030 $991.0 million) and the portion of the non-eliminated carrying amount of notes due 2026 issued by the Companyʼs fully consolidated joint venture $14.7 million), or $1,005.7 million1 in total. ● Cash and cash equivalents plus short-term and long-term investments totaled $3,601.2 million in Q2 2024. ● Net liquidity (cash, cash equivalents and investments less debt) was $2,595.6 million On June 18, 2024 Standard & Poorʼs upgraded our senior notes from BB to BB. 1 $991.0 million represents the net carrying amount of the senior notes due 2030 and $14.7 million represents the portion of the non-eliminated carrying amount of notes due 2026 issued by the Companyʼs fully consolidated joint venture, each as of June 30, 2024. The principal amounts of the 2030 Notes and 2026 Notes were $1.0 billion and $14.7 million, respectively. 7

 
EARNINGS Q&A SESSION We will host a live Q&A session to answer questions regarding our second quarter 2024 results on Thursday, August 1, 2024 at 530 a.m. Pacific Time/830 a.m. Eastern Time. The live webcast and Q&A session will be open to the public at ir.roblox.com and we invite you to join us and to visit our investor relations website at ir.roblox.com to review supplemental information. 8

 
Forward-Looking Statements This letter and the live webcast and Q&A session which will be held at 530 a.m. Pacific Time/830 a.m. Eastern Time on Thursday, August 1, 2024 contain “forward-looking statementsˮ within the meaning of the “safe harborˮ provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion global DAUs, our efforts to improve the Roblox Platform, our immersive and video advertising efforts, including our ads manager and independent measurement partnerships, our efforts to provide a safe online environment for children, our efforts regarding content curation, live operations and platform-wide events, our efforts regarding real-world shopping, the use of artificial intelligence (“AIˮ) on our platform, our economy and product efforts related to creator earnings and platform monetization, our sponsored experiences, branding and new partnerships and our roadmap with respect to each, our business, product, strategy and user growth, our investment strategy, including our opportunities for and expectations of improvements in financial and operating metrics, including operating leverage, margin, free cash flow, operating expenses and capital expenditures, our expectation of successfully executing such strategies and plans, disclosures regarding the seasonality of our business, disclosures and future growth rates, benefits from agreements with third-party cloud providers, disclosures about our infrastructure efficiency initiatives, changes to our estimated average lifetime of a paying user and the resulting effect on revenue, cost of revenue, deferred revenue and deferred cost of revenue, our expectations of future net losses and net cash and cash equivalents provided by operating activities, statements by our Chief Executive Officer and Chief Financial Officer, and our outlook and guidance for third quarter and full year 2024, and future periods. These forward-looking statements are made as of the date they were first issued and were based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,ˮ “vision,ˮ “envision,ˮ “evolving,ˮ “drive,ˮ “anticipate,ˮ “intend,ˮ “maintain,ˮ “should,ˮ “believe,ˮ “continue,ˮ “plan,ˮ “goal,ˮ “opportunity,ˮ “estimate,ˮ “predict,ˮ “may,ˮ “will,ˮ “could,ˮ and “would,ˮ and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SECˮ), including our annual reports on Form 10K, our quarterly reports on Form 10Q and other filings and reports we make with the SEC from time to time. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs, including the repayment of our senior notes; the demand for our platform in general; our ability to retain and increase our number of users, developers, and creators; the impact of inflation and global economic conditions on our operations; the impact of changing legal and regulatory requirements on our business, including the use of verified parental consent; our ability to develop enhancements to our platform, and bring them to market in a timely manner; our ability to develop and protect our brand and build new partnerships; any misuse of user data or other undesirable activity by third parties on our platform; our ability to maintain the security and availability of our platform; our ability to detect and minimize unauthorized use of our platform; and the impact of AI on our platform, users, creators, and developers. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from our 9

 
expectations is included in the reports we have filed or will file with the SEC, including our annual reports on Form 10K and our quarterly reports on Form 10Q. The forward-looking statements included in this letter represent our views as of the date of this letter. We anticipate that subsequent events and developments will cause our views to change. However, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this letter. 10

 
Non-GAAP Financial Measures This letter contains the non-GAAP financial measures bookings, Adjusted EBITDA, and free cash flow. We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance. Bookings is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Substantially all of our bookings are generated from sales of virtual currency, which can ultimately be converted to virtual items on the Roblox Platform. Sales of virtual currency reflected as bookings include one-time purchases and monthly subscriptions purchased via payment processors or through prepaid cards. Bookings also include an insignificant amount from advertising and licensing arrangements. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Adjusted EBITDA represents our GAAP consolidated net loss, excluding interest income, interest expense, other income/(expense), provision for/(benefit from) income taxes, depreciation and amortization expense, stock-based compensation expense, and certain other nonrecurring adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted EBITDA is useful to investors and management in understanding our ongoing operations and ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. Free cash flow represents the net cash and cash equivalents provided by operating activities less purchases of property, equipment, and intangible assets acquired through asset acquisitions. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property, equipment, and intangible assets acquired through asset acquisitions, can be used for strategic initiatives. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP. 11

 
Reconciliation tables of the most comparable GAAP financial measure to the non-GAAP financial measure used in this letter are included at the end of this letter. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measures. 12

 
GAAP to Non-GAAP Financial Measures Reconciliations The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands, unaudited): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Reconciliation of revenue to bookings: Revenue $ 893,543 $ 680,766 $ 1,694,843 $ 1,336,110 Add (deduct): Change in deferred revenue 66,728 105,372 194,332 229,155 Other 5,093 5,452 10,240 10,760 Bookings $ 955,178 $ 780,686 $ 1,878,935 $ 1,554,505 The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands, unaudited): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Reconciliation of consolidated net loss to Adjusted EBITDA Consolidated net loss $ 207,195 $ 284,841 $ 479,115 $ 554,789 Add (deduct): Interest income 44,383 34,764 86,553 65,846 Interest expense 10,204 10,129 20,567 20,141 Other (income)/expense, net 3,315 3,277 3,661 2,837 Provision for/(benefit from) income taxes 110 1,236 1,163 505 Depreciation and amortization expense 52,772 52,599 106,513 100,011 Stock-based compensation expense 251,891 212,362 492,393 397,266 RTO severance charge(i) 189 — 993 — Other non-cash charges(ii) — — — 6,988 Adjusted EBITDA $ 66,525 $ 49,028 $ 59,622 $ 99,571 (i) Relates to cash severance costs associated with the Companyʼs return-to-office (“RTOˮ) plan announced in October 2023, which requires a subset of the Companyʼs remote employees to begin working from the San Mateo headquarters for three days a week, beginning in the summer of 2024. (ii) Includes impairment expenses related to certain operating lease right-of-use assets and related property and equipment. 13

 
The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands, unaudited): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow: Net cash and cash equivalents provided by operating activities $ 151,449 $ 28,390 $ 390,395 $ 202,171 Deduct: Acquisition of property and equipment 39,701 110,915 86,381 202,274 Purchases of intangible assets 170 13,000 1,370 13,500 Free cash flow $ 111,578 $ 95,525 $ 302,644 $ 13,603 14

 
Forward Looking Guidance2: GAAP to Non-GAAP Financial Measures Reconciliations The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands): Guidance Updated Guidance Three Months Ended Twelve Months Ended September 30, 2024 December 31, 2024 Low High Low High Reconciliation of revenue to bookings: Revenue $ 860,000 $ 885,000 $ 3,490,000 $ 3,540,000 Add (deduct): Change in deferred revenue 145,000 145,000 711,000 711,000 Other 5,000 5,000 21,000 21,000 Bookings $ 1,000,000 $ 1,025,000 $ 4,180,000 $ 4,230,000 2 Beginning April 1, 2024, the estimated average lifetime of a payer changed from 28 months to 27 months, which is reflected in our third quarter and updated full year 2024 GAAP and non-GAAP guidance. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the April 1, 2024 change in estimated average lifetime of a payer will result in an increase in revenue and cost of revenue of $26.4 million and $5.4 million, respectively, during the third quarter of 2024 and an increase in revenue and cost of revenue of $98.0 million and $20.4 million, respectively, during the full year 2024. Refer to “Basis of Presentation and Summary of Significant Accounting Policies — Revenue Recognitionˮ as described in the Companyʼs consolidated financial statements and related notes included in the Companyʼs Annual Report on Form 10K for further background on the Companyʼs process to estimate the average lifetime of a payer. 15

 
The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands): Guidance Updated Guidance Three Months Ended Twelve Months Ended September 30, 2024 December 31, 2024 Low High Low High Reconciliation of consolidated net loss to Adjusted EBITDA Consolidated Net Loss $ 275,000 $ 255,000 $ 1,089,000 $ 1,049,000 Add (deduct): Interest income 40,000 40,000 167,000 167,000 Interest expense 11,000 11,000 42,000 42,000 Other (income)/expense, net — — 4,000 4,000 Provision for/(benefit from) income taxes 1,000 1,000 4,000 4,000 Depreciation and amortization expense 55,000 55,000 217,000 217,000 Stock-based compensation expense 270,000 270,000 1,080,000 1,080,000 RTO severance charge(i) — — 1,000 1,000 Adjusted EBITDA $ 22,000 $ 42,000 $ 92,000 $ 132,000 (i) Relates to cash severance costs associated with the Companyʼs RTO plan announced in October 2023, which requires a subset of the Companyʼs remote employees to begin working from the San Mateo headquarters for three days a week, beginning in the summer of 2024. The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands): Guidance Updated Guidance Three Months Ended Twelve Months Ended September 30, 2024 December 31, 2024 Low High Low High Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow: Net cash and cash equivalents provided by operating activities $ 147,000 $ 162,000 $ 685,000 $ 715,000 Deduct: Acquisition of property and equipment 42,000 42,000 178,000 178,000 Purchases of intangible assets — — 2,000 2,000 Free cash flow $ 105,000 $ 120,000 $ 505,000 $ 535,000 16

 
v3.24.2.u1
Cover
Jul. 31, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 01, 2024
Entity Registrant Name Roblox Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 001-39763
Entity Tax Identification Number 20-0991664
Entity Address, Address Line One 970 Park Place
Entity Address, City or Town San Mateo
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94403
City Area Code 888
Local Phone Number 858-2569
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, $0.0001 par value
Trading Symbol RBLX
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001315098
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