Roblox Corp (RBLX, Financial), an online video game platform that allows users to create, develop, and monetize games, reported its second quarter 2024 financial results. The company saw significant growth across core financial and operational metrics, although it missed analyst revenue estimates.
Key Financial Highlights
Roblox Corp (RBLX, Financial) reported revenue of $893.5 million for Q2 2024, up 31% year-over-year but below the analyst estimate of $971.18 million. Bookings, a non-GAAP measure, were $955.2 million, up 22% year-over-year. The net loss attributable to common stockholders was $205.9 million, while the consolidated net loss was $207.2 million.
Operational Metrics
Roblox Corp (RBLX, Financial) saw a record 79.5 million average daily active users (DAUs), up 21% year-over-year. Hours engaged also reached a record 17.4 billion, up 24% year-over-year. Average monthly unique payers were 16.5 million, up 22% year-over-year, and average bookings per monthly unique payer were $19.34.
Liquidity and Cash Flow
Net cash and cash equivalents provided by operating activities were $151.4 million, up 433% year-over-year. Free cash flow was $111.6 million, compared to $(95.5) million in the second quarter of 2023. The company’s cash and cash equivalents, short-term investments, and long-term investments totaled $3.6 billion, with net liquidity at $2.6 billion.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $893.5 million | $680.8 million |
| Net Loss | $(207.2) million | $(284.8) million |
| Adjusted EBITDA | $66.5 million | $(49.0) million |
Balance Sheet Highlights
As of June 30, 2024, Roblox Corp (RBLX, Financial) had total assets of $6.47 billion, up from $6.17 billion as of December 31, 2023. The company’s total liabilities were $6.36 billion, compared to $6.10 billion at the end of 2023. Stockholders' equity stood at $111.3 million, up from $68.6 million.
Commentary
"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," 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," said Michael Guthrie, chief financial officer of Roblox.
Analysis
Roblox Corp (RBLX, Financial) continues to show robust growth in user engagement and bookings, which are critical for its long-term success. However, the company’s revenue fell short of analyst expectations, which could raise concerns among investors. The significant increase in net cash provided by operating activities and free cash flow is a positive sign, indicating improved operational efficiency and financial health.
Despite the net loss, the company’s focus on expanding its user base and enhancing its platform for creators appears to be paying off. The increase in DAUs and hours engaged highlights the platform's growing popularity and user engagement, which are essential for future revenue growth.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Roblox Corp for further details.
