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 Q1 2025
Roblox (RBLX) announced that its Q1 2025 bookings increased by 31% compared to the previous year, reaching $1.21 billion and exceeding expectations. The company’s quarterly loss improved to 32 cents per share, outperforming the anticipated loss of 40 cents.
Highlights
- Revenue: $1.04 billion, up 29% year-over-year.
- Bookings: $1.21 billion, up 31% year-over-year.
- Net Loss: $215.1 million attributable to common stockholders, $216.3 million consolidated.
- Cash Flow: Operating cash flow reached $443.9 million (up 86%) and free cash flow was $426.5 million (up 123%).
- User Engagement:
- Daily Active Users (DAUs): 97.8 million, up 26%.
- Monthly unique payers: 20.2 million, up 29%.
- Engagement hours: 21.7 billion, up 30%.
- Average bookings per daily active users: $12.34, up 4%.
- Liquidity: Total cash and investments were $4.51 billion, with net liquidity at $3.50 billion.
Guidance
- Revenue: Expected to range between $1.02 billion and $1.045 billion.
- Bookings: Projected between $1.165 billion and $1.19 billion.
- Net Loss: Estimated between $288 million and $268 million.
Boards Statements
David Baszucki, founder and CEO of Roblox, highlighted the company’s strong Q1 2025 performance, surpassing the guidance provided during its Q4 2024 earnings call. He attributed the results to growth initiatives in the virtual economy, search, and discovery, which drove increased monetization, bookings, and creator earnings.
During the quarter, Roblox creators earned a record $281.6 million, with over 100 developers earning more than $1 million in the past year. The community is projected to exceed $1 billion in earnings for the full year.
Michael Guthrie, Roblox’s CFO, noted accelerated topline growth in Q1 2025, with revenue rising 29% year-over-year and bookings increasing 31% year-over-year across all regions. He emphasized cash flow from operations and free cash flow reached record levels, showing significant year-over-year growth and surpassing prior guidance.
Impact on the Stock Market
Roblox’s stock surged 3.5% after the company exceeded first-quarter bookings expectations and added significantly more users than anticipated.
Bookings rose 31% year-over-year to $1.21 billion, surpassing forecasts, while its quarterly loss narrowed to 32 cents per share, beating the expected loss of 40 cents. Investors view bookings as a key growth indicator, contributing to the stock’s positive momentum.
