Roblox Reports Strong Revenue and User Growth in Q4 2023
Financial Results
Roblox, the popular video game developer, exceeded analyst expectations in its latest quarterly results, reporting losses per share and revenue figures that surpassed estimates. The company’s performance in the fourth quarter of 2023 highlights its continued growth and potential for the future.
- Losses per share: 52 cents vs. 55 cents expected by analysts, according to LSEG, formerly Refinitiv.
- Revenue (bookings): $1.13 billion vs. $1.08 billion expected, according to LSEG.
Revenue and Bookings
Roblox generates revenue primarily from sales of its virtual currency, Robux, which allows players to enhance their gaming experience. The company’s fourth quarter revenue, also known as bookings, reached $1.1 billion, marking the highest ever reported by Roblox. The strong performance in bookings demonstrates the continued popularity and engagement of Roblox’s user base.
Furthermore, Roblox’s full-year revenue for 2023 amounted to $3.52 billion, surpassing the consensus estimate of $3.41 billion, indicating sustained growth on an annual basis. The company’s ability to consistently attract users and drive bookings reflects its success in the gaming industry.
User Growth
Roblox CEO, David Baszucki, expressed optimism about the company’s growth prospects, emphasizing their goal to surpass 1 billion daily active users. In line with this vision, Roblox reported a 22% increase in average daily active users during the quarter, with a total of 71.5 million users. The growth of engaged users indicates the platform’s continued popularity and the strength of its community.
Positive Trends and Future Projections
Roblox’s recent success is not limited to active user growth. The company observed a 3% increase in average bookings per daily active user, reaching $15.75. Additionally, Roblox has seen meaningful expansion in the 13-and-up segment and non-U.S. & Canada segment, with double-digit growth in both areas.
Although the number of engaged hours slightly decreased in the fourth quarter, with 15.5 million hours logged, this still represents a significant 21% increase compared to the previous year. The positive user metrics, coupled with increased bookings, attest to Roblox’s strong position in the gaming market.
2024 Outlook
Looking ahead, Roblox provided its projections for the first fiscal quarter and the full year of 2024. The company anticipates first-quarter bookings to range between $910 million and $940 million, with a net loss expected between $342 million and $347 million. In terms of full-year 2024 projections, Roblox expects bookings between $4.1 billion and $4.28 billion, with a net loss in the range of $1.37 billion and $1.4 billion.
Personnel Costs
While Roblox continues to demonstrate strong financial performance, it faces increasing personnel costs. However, the rate of personnel cost growth has been slower than that of bookings. Excluding share-based compensation, the company’s quarterly personnel costs grew by 24% year over year, primarily due to investments in infrastructure and trust and safety teams.
