Quarterly Report — Q1 2024
Filed May 9, 2024
Revenue hit $801M in Q1 2024, up 22% year-over-year, but the company is still burning cash with a net loss of $271M for the quarter. A key accounting detail worth watching: Roblox changed its estimate of how long users keep virtual items, which will boost recognized revenue going forward — the company expects $60–70M in additional revenue for full-year 2024 from this change alone. The loss remains substantial, with stock-based compensation of $242M continuing to be one of the biggest drags on profitability.
Filing details
Performance by segment
Roblox Platform
Roblox operates as a single reportable segment — its unified immersive platform for connection and communication. Revenue grew 22% YoY to $801.3 million in Q1 2024, driven by higher amortization of prior period deferred revenue and increased bookings of $923.8 million (up 19% YoY). Average DAUs rose to 77.7 million with hours engaged reaching 16.7 billion, while average daily unique paying users increased from approximately 812,000 to approximately 914,000 YoY.
“Our mission is to connect a billion users with optimism and civility.”
Developer Exchange & Creator Economy
Developer exchange fees increased 11% YoY to $202.4 million in Q1 2024, reflecting growth in amounts earned by developers and creators from rising bookings. Over 18,000 developers and creators qualified for the Developer Exchange Program as of March 31, 2024. Growth in developer exchange fees lagged overall bookings growth, primarily driven by slower growth in the Engagement-Based Payouts program relative to overall bookings.
“Over the next few years, a major goal is to increase our developer and creator earnings (i) by creating new earnings methods and enhancing existing ones and (ii) through efficiencies realized in other areas of our business, while maintaining reasonable margins.”
Infrastructure and Trust & Safety
Infrastructure and trust & safety expenses increased 8% YoY to $226.9 million in Q1 2024, driven by a $16.2 million increase in personnel costs including $8.7 million in additional stock-based compensation from headcount growth. Depreciation and amortization related to infrastructure was $46.2 million versus $41.0 million in the prior year period. The company took possession of new data center leased space with payments totaling $95.4 million over a seven-year term.
“We plan to continue increasing the capacity, capability, and reliability of our infrastructure to support more sophisticated content, more users, and increased engagement.”
Advertising
Advertising revenue remains an insignificant portion of total bookings but is a stated strategic priority. The company noted bookings include "an insignificant amount from advertising and licensing arrangements" and plans to "invest in and expand our advertising business for the foreseeable future." No specific advertising revenue figures were disclosed.
“We plan to invest in and expand our advertising business for the foreseeable future.”