Financial Data and Key Metrics Changes - Q1 revenue reached $1,035 million, up 29% year on year, exceeding guidance of $990 million to $1,015 million [6] - Q1 bookings were $1,207 million, up 31% year on year, surpassing the high end of guidance which was $1,125 million to $1,150 million [6] - Q1 Daily Active Users (DAUs) were 97.8 million, up 26% year on year [6] - Cash from operations was $443 million, up 86% year on year, and free cash flow was $406 million, up 123% [10][33] - The company reported a strong balance sheet with $4.5 billion in gross cash and $3.5 billion in net cash [35] Business Line Data and Key Metrics Changes - Developer Exchange (DevEx) increased by 39% year on year to $281 million, representing 27% of revenue [12] - The top 100 creators earned an average of $6.7 million over the last twelve months, up 35% year on year [17] - Engagement hours reached 21.7 billion, up 30% year on year, with significant growth in various demographics [8][9] Market Data and Key Metrics Changes - DAU growth in the US and Canada was 22%, while APAC saw a 40% increase, Japan 48%, and India 77% year on year [7] - Engagement hours in Japan grew by 50% year on year, and in India by 78% [9] Company Strategy and Development Direction - The company aims to capture 10% of the gaming market by focusing on genre expansion and improving technology [21] - Emphasis on AI-driven operational efficiencies and creator success, with plans for enhanced monetization strategies [11][12] - The integration of advertising partnerships, including a collaboration with Google, to expand monetization opportunities [23][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience during potential economic downturns, citing past performance during recessions [51] - The focus remains on innovation as a key driver for growth, with a belief that the platform can thrive even in challenging economic conditions [52] Other Important Information - The company is enhancing its AI capabilities, including generative 3D and text generation tools for creators [26][81] - New parental controls were introduced to improve user safety [28] Q&A Session Summary Question: What steps will the company take to maintain growth from smaller developers? - Management highlighted tracking various genres and enhancing technology to support growth across the platform [39][41] Question: What is the status of the differential pricing initiative? - Management indicated that it is still in early stages but has shown positive results so far [44][46] Question: How does the company view macroeconomic conditions affecting consumer spending? - Management noted that the majority of users do not spend significant amounts, which may buffer against downturns [51][54] Question: What are the biggest opportunities for improving monetization? - Management emphasized focusing on genre expansion and improving bookings per hour through various initiatives [61][65] Question: What is the status of the Shopify partnership and e-commerce opportunities? - Management sees e-commerce as a strategic opportunity for future growth, although it is still in early phases [90][91]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $1,035 million, up 29% year on year, exceeding guidance of $990 million to $1,015 million [5] - Q1 bookings were $1,207 million, up 31% year on year, surpassing the high end of guidance which was $1,125 million to $1,150 million [5] - Q1 Daily Active Users (DAUs) reached 97.8 million, up 26% year on year [5] - Cash from operations was $443 million, up 86% year on year, exceeding guidance of $380 million [8] - Free cash flow in Q1 was $406 million, up 123%, also above guidance [8] - The company reported a strong balance sheet with $4.5 billion in gross cash and $3.5 billion in net cash [34] Business Line Data and Key Metrics Changes - Developer Exchange (DevEx) increased by 39% year on year to $281 million, representing 27% of revenue [11] - The company noted that the top 100 creators earned an average of $6.7 million over the last twelve months, up 35% year on year [16] Market Data and Key Metrics Changes - DAUs in the US and Canada grew by 22%, while APAC saw a 40% increase, Japan 48%, and India 77% year on year [6] - Engagement hours reached 21.7 billion, up 30% year on year, with significant growth in various regions [7] Company Strategy and Development Direction - The company aims to capture 10% of the gaming market by consumer spending, focusing on genre expansion and technological improvements [19] - Emphasis on AI-driven tools for operational efficiency and creator support, with plans for full 3D scene creation and interactive assets [25][81] - The company is enhancing its advertising capabilities through partnerships, including a collaboration with Google [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience during potential economic downturns, citing past performance during recessions [50] - The focus remains on innovation as a key driver for growth, with a belief that the platform can thrive even in challenging economic conditions [52] Other Important Information - The company is actively working on improving its search and discovery algorithms to enhance content visibility for creators [15] - The integration of differential pricing is still in early stages but shows promising results [42][44] Q&A Session Summary Question: What steps is the company taking to ensure continued growth from smaller developers? - The company is tracking various genres and believes that technological advancements will support growth across the platform [38] Question: What is the status of the differential pricing initiative? - The initiative is in its early stages, with positive early results, but it is too soon to determine its full impact [42][44] Question: How does the company view the potential impact of macroeconomic conditions on its business? - Management noted that the majority of users do not spend significant amounts, which may buffer against economic downturns [50] Question: What are the biggest opportunities for improving passive hourly monetization? - The focus is on genre expansion and increasing DAU, with ongoing efforts to optimize pricing and payment methods [60][63] Question: Can you discuss the Shopify partnership and its importance for e-commerce? - The Shopify integration is still in early phases, but the company sees significant potential for e-commerce growth on the platform [88][89]

User Metrics - Average Daily Active Users (DAUs) are defined as users who log in and visit the platform on a unique registered account on a given calendar day, with DAUs for a specified period being the average for that period[17]. - The accuracy of user metrics may be impacted by factors such as botting and unauthorized access, which can lead to overstatements of DAUs[19][16]. - Total hours engaged are calculated as the aggregate of user session lengths, which may vary across devices and platforms, and are tracked to measure user engagement[20][21]. - The company is exploring technology to obtain greater granularity in user demographic estimates, which may affect comparability of metrics over time[15]. Financial Metrics - Bookings represent sales activity in a given period, primarily from virtual currency sales, and are recorded in deferred revenue, recognized over the estimated lifetime of a paying user, which was 27 months as of March 31, 2025[23][24]. - Average Bookings per Daily Active User (ABPDAU) is calculated by dividing bookings in a given period by the DAUs for that period, providing insight into monetization across users[27]. - The average new monthly unique payers are defined as user accounts making their first payment during a given month, while returning monthly unique payers are those who have made payments in the current and prior months[29][30]. - The monthly repurchase rate is calculated as returning monthly unique payers in the current month divided by the sum of the prior month's new and returning monthly unique payers[31]. Debt and Interest Rates - As of March 31, 2025, a hypothetical 100 basis points increase in interest rates would have resulted in a decrease in the fair values of the company's debt securities by approximately $32.9 million[233]. - The company issued $1.0 billion aggregate principal amount of the 2030 Notes, with interest payable semiannually, and the entire principal amount due at maturity on May 1, 2030[235].

Exhibit 99.1 Roblox Reports First Quarter 2025 Financial Results Substantial year-over-year growth exceeds guidance across all key metrics SAN MATEO, Calif., May 1, 2025 - Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its first quarter 2025 financial and operational results and issued its second quarter and updated full year 2025 guidance today. Separately, Roblox posted a letter to shareholders and supplemental materials on the ...

Core Viewpoint - Roblox (RBLX) is expected to report a quarterly loss of $0.41 per share, a 4.7% increase in loss compared to the same period last year, with revenues forecasted at $1.15 billion, reflecting a year-over-year increase of 24% [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate for the quarter has been revised upward by 0.4%, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Key Metrics Projections - Analysts project 'Bookings' to reach $1.15 billion, up from $923.76 million in the same quarter last year [5] - 'Daily Active Users (DAUs)' are expected to be 92.95 million, compared to 77.7 million a year ago [5] - 'Total Hours Engaged' is forecasted to be 20.40 billion, an increase from 16.7 billion in the same quarter last year [5] Regional DAUs Estimates - 'Daily Active Users (DAUs) - ROW' is estimated at 26.86 million, up from 21.3 million in the same quarter last year [6] - 'Daily Active Users (DAUs) - APAC' is projected to be 24.18 million, compared to 18.8 million a year ago [6] - 'Daily Active Users (DAUs) - US & Canada' is expected to reach 19.07 million, up from 16.2 million in the same quarter last year [7] - 'Daily Active Users (DAUs) - Europe' is forecasted at 23.41 million, compared to 21.4 million in the same quarter last year [7] Stock Performance - Over the past month, Roblox shares have gained 12.7%, while the Zacks S&P 500 composite has decreased by 4.3%, indicating a potential outperformance of RBLX in the upcoming period [7]

Roblox (RBLX) closed at $66.58 in the latest trading session, marking a +1.35% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.74%. On the other hand, the Dow registered a gain of 0.05%, and the technology-centric Nasdaq increased by 1.26%.The online gaming platform's shares have seen an increase of 10.4% over the last month, surpassing the Consumer Discretionary sector's loss of 4.48% and the S&P 500's loss of 4.77%.The investment community will be paying close attention to the ea ...

Core Viewpoint - Roblox has shown strong performance over the past year, with a stock price increase of approximately 70%, but concerns are rising about the sustainability of this growth due to emerging user trends and economic factors [1][3]. Group 1: Company Overview - Roblox is recognized as an innovative company with strong financial performance and a promising growth trajectory, but its stock valuation may be too high given its recent performance [3]. - The company operates in a $180 billion gaming market, currently holding only a 2.4% market share, with aspirations to increase this to 10%, potentially generating revenues of $18 billion or more [5]. Group 2: Revenue Sources and User Trends - Roblox's primary revenue sources are in-game purchases and advertising, with players using a virtual currency called Robux for transactions [5]. - The company has experienced a decline in Daily Active Users (DAU) for the first time in seven quarters, with a drop of approximately 3 million users to 85.3 million [5][7]. - The decline in DAU is particularly pronounced among users under 13, with a 6% decrease, while users aged 13 and above saw a 2.8% decline [7]. Group 3: Economic Impact and Advertising - The economic slowdown in the U.S. may impact Roblox's revenue, as many of its users are minors whose spending is dependent on parental support [8]. - North American users generate significantly higher revenue compared to international users, with an average daily active user booking amounting to $48, which is four times that of European users and eight times that of Asian users [10]. - The advertising business may face challenges as advertisers cut marketing budgets due to economic conditions, potentially affecting Roblox's revenue [11]. Group 4: Financial Guidance and Projections - Roblox's guidance for Q1 2025 includes expected revenues of $990 million to $1.015 billion, representing a year-over-year growth of 24-27% [12]. - The company anticipates a significant decline in bookings for Q1 2025, projecting a decrease of 16-17% compared to the previous quarter [14]. - Analysts are concerned that Roblox may struggle to achieve its revenue growth targets due to pressures on bookings and advertising revenue [15]. Group 5: Valuation and Market Position - Roblox's current stock price is around $60, with a market capitalization of $39.84 billion, leading to a high valuation compared to other gaming companies [15]. - Analysts expect Roblox's revenue for FY 2025 to reach $5.26 billion, indicating a valuation of 7.0 times enterprise value to FY 2025 revenue [15]. - Despite its growth rate of approximately 20%, concerns remain about the sustainability of this growth if DAU continues to decline and if bookings and advertising face further pressure [17].

BofA Securities analyst Omar Dessouky shared views on Roblox Corporation RBLX ahead of its first quarter FY25 earnings release on May 1.The analyst maintained a Buy rating on the company with a price forecast of $79.The analyst anticipates the company to gain market share in the video game sector due to its virtually unlimited pool of developers and its ability to drive innovation beyond the broader gaming industry.Also Read: Cathie Wood’s Ark Invest Continues To Offload UiPath, Roblox: Loads Up On GitLab, ...

Group 1 - The stock market turmoil has led investors to seek safe havens, with the video game industry being one of the preferred sectors due to its relative insulation from tariff impacts [1] - The video game industry is characterized as an internet service, which provides a buffer against market volatility [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been involved with seed-round startups, contributing to insights on current industry trends [1] - Since 2017, Gary Alexander has been a regular contributor to Seeking Alpha and has been featured in various web publications [1]

From a technical perspective, Roblox (RBLX) is looking like an interesting pick, as it just reached a key level of support. RBLX recently overtook the 20-day moving average, and this suggests a short-term bullish trend.A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.Similar ...