Thu, May 1, 12:18 PM (12 days ago)
### Summary of Roblox Corporation's Q1 2025 Financial Performance **Ticker:** RBLX **Quarterly Financial Health:** - **Revenue:** $1,035.2 million, up 29% YoY. - **Net Loss:** $216.3 million, an improvement from $271.9 million YoY. - **Adjusted EBITDA:** $57.9 million, a significant improvement from -$6.9 million YoY. - **Free Cash Flow:** $426.5 million, up from $191.1 million YoY. **Profit Margins:** - **Gross Margin:** Not explicitly stated, but cost of revenue was $224.7 million. - **Operating Margin:** -25%, an improvement from -38% YoY. **Cash Flow:** - **Operating Cash Flow:** $443.9 million, up from $238.9 million YoY. - **Investing Cash Flow:** -$35.3 million, an improvement from -$78.6 million YoY. - **Financing Cash Flow:** $36.5 million, up from $28.2 million YoY. **Earnings Changes:** - **EPS:** -$0.32, an improvement from -$0.43 YoY. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by higher amortization of prior period deferred revenue and an increase in bookings. - **Cost of Revenue:** Increased due to higher amortization of prior period deferred cost of revenue and an increase in current period payment processing fees. - **Developer Exchange Fees:** Increased due to growth in bookings and differential Robux pricing. - **Infrastructure and Trust & Safety:** Increased due to data center and technical infrastructure expenses and personnel costs. - **Research and Development:** Increased due to personnel costs, including stock-based compensation. - **General and Administrative:** Increased due to professional services-related expenses and personnel costs. - **Sales and Marketing:** Increased due to personnel costs and advertising expenses. **Trends:** - **User Engagement:** 97.8 million average DAUs, with 1.22 million average daily unique paying users. - **Bookings:** $1,206.7 million, up from $923.8 million YoY. - **Average Bookings per DAU (ABPDAU):** $0.14, with average daily bookings per daily unique paying user at $10.99. **Uncertainties:** - **Regulatory Risks:** Increased scrutiny on online safety, privacy, and data protection. - **Competitive Landscape:** High competition from other gaming and metaverse platforms. - **Economic Conditions:** Global economic uncertainty and inflation may affect user spending. **Future Operations Impact:** - **Investments:** Continued investment in infrastructure, technology, and user safety. - **Expansion:** Focus on international markets and new revenue streams, including advertising. - **User Acquisition:** Emphasis on maintaining and growing the user base, particularly younger users.