Financial Data and Key Metrics Changes - Q3 revenue reached $1.36 billion, up 48% year on year [5] - Q3 bookings were $1.92 billion, up 70% year on year [5] - Daily Active Users (DAUs) hit 151.5 million, a 70% increase year on year [4] - Engagement hours reached 39.6 billion, up 91% year on year [5] - Monthly unique payers increased to 35.8 million, up 88% year on year [5] Business Line Data and Key Metrics Changes - The number of experiences with over 10 million DAUs reached seven, including five new experiences created in the last 12 months [3][4] - Developer Exchange (DevEx) earnings reached $427.9 million, up 85% year on year [5] - DevEx has grown 250% from the same period two years ago [6] Market Data and Key Metrics Changes - Global gaming bookings through Roblox increased from 2.3% to 3.2% year on year [3] - APAC bookings grew by 110% year on year, with specific countries like Indonesia seeing an 804% increase [5] Company Strategy and Development Direction - The company aims to capture 10% of the global gaming content market, focusing on genre expansion and technological innovation [3][6] - Investments in infrastructure and safety are prioritized to support long-term growth and platform resilience [10][20] - The introduction of new technologies, such as AI-based features and enhanced avatar capabilities, is expected to drive future engagement [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential short-term friction from new safety policies but believes these will enhance long-term growth [20] - The company is optimistic about sustaining double-digit bookings growth, aided by upcoming technology launches [19][20] - There is a focus on maintaining a healthy balance between creator economics and company profitability [36] Other Important Information - The company has launched an IP platform to connect IP holders and creators more efficiently [9] - Over 100 innovations in safety and civility have been released this year, including stricter age ratings [12] Q&A Session Summary Question: AI and Infrastructure Plans - The company is excited about the potential of AI and GPU infrastructure to enhance user experiences and real-time content generation [24][26] Question: Competition and Creator Economics - The company emphasizes the importance of creator economics and the broader ecosystem, not just the DevEx rate, to attract and retain creators [34][36] Question: Age Cohorts and Investment Priorities - The company has seen strong organic growth and is aligning its technical roadmap with the interests of older age cohorts [38][40] Question: Bookings Growth Expectations - Management refrains from providing specific guidance for 2026 but acknowledges potential headwinds from tough comparisons and new safety policies [46][50] Question: Advertising as a Growth Strategy - The company is exploring paid user acquisition strategies in partnership with creators while maintaining a focus on organic growth [80][83] Question: Developer Growth and Investment Yield - The company reports healthy growth among top developers and anticipates both short-term and long-term returns from AI investments [87][90]

Core Insights - Roblox achieved record quarterly performance with daily active users significantly exceeding analyst expectations, reaching 151.5 million, a 70% year-over-year increase [1] - The company reported bookings of $1.92 billion and revenue of $1.4 billion, marking a 48% year-over-year growth, despite a net loss of $257 million [1] - Roblox's strategy focuses on transforming the platform from gaming to social, advertising, and e-commerce, contributing to its status as a major winner in the gaming industry with stock prices more than doubling this year [1] User Engagement and Game Performance - In August, Roblox set a record with 47 million concurrent users, driven by three popular games that attracted over 22 million users each [2] - User engagement in non-top 10 games increased by 58% year-over-year, indicating broader platform appeal beyond just a few hit titles [2] - The CFO highlighted investments in search recommendation algorithms, server capacity, and developer incentives as key to supporting multiple high-traffic games simultaneously [2] Financial Metrics and Costs - Despite a record number of paying users, average spending per paying user has declined compared to previous quarters [2] - Revenue costs increased by 45%, reaching $296.5 million, reflecting the growing operational expenses associated with platform expansion [2] Regulatory and Safety Concerns - Several Middle Eastern countries have banned Roblox due to child safety concerns, with Iraq blocking access in October and similar actions taken by Oman, Qatar, and Turkey [3] - In the U.S., a lawsuit has been filed against Roblox for failing to adequately protect minors on the platform, with multiple related lawsuits currently in progress [3] Safety Measures and Future Outlook - Roblox has implemented numerous safety updates over the past year, including communication restrictions for minors and advanced age estimation technology [4] - The company anticipates a significant increase in fiscal year 2025 bookings, raising its forecast from $5.87-5.97 billion to $6.57-6.62 billion, with fourth-quarter bookings expected to reach $2-2.05 billion, surpassing analyst expectations [4]

Core Insights - Roblox reported a wider loss in the third quarter but raised its revenue forecast for the year due to strong growth driven by popular video gaming trends [1] Financial Performance - The company experienced a significant increase in top-line growth attributed to two major video gaming crazes [1] Revenue Forecast - Roblox has adjusted its revenue forecast upward for the year, indicating confidence in continued growth despite the wider loss reported [1]

Q3 2025 Results - Revenue reached $1.4 billion, a 48% year-over-year growth[5] - Bookings totaled $1.9 billion, showing a 70% year-over-year increase[5] - Average Daily Active Users (DAUs) were 151.5 million, up 70% year-over-year[5] - Hours Engaged reached 39.6 billion, a significant 91% year-over-year growth[5] - Net loss was $(257) million, a 121% year-over-year growth[7] - Net cash provided by operating activities was $546 million[7] - Free cash flow was $443 million, a 103% year-over-year growth[7] - Adjusted EBITDA was $46 million[7] Q4 and Fiscal Year 2025 Guidance - Q4 2025 revenue is projected between $1.35 billion and $1.4 billion, representing a 37% to 42% year-over-year increase[57] - Q4 2025 bookings are expected to be between $2 billion and $2.05 billion, a 47% to 51% year-over-year increase[57] - Fiscal year 2025 revenue is guided between $4.8255 billion and $4.8755 billion, a 34% to 35% year-over-year increase[58] - Fiscal year 2025 bookings are projected between $6.5662 billion and $6.6162 billion, a 50% to 51% year-over-year increase[58]

Group 1: Earnings Reports - Mastercard (MA) reported Q3 adjusted EPS of $4.38, exceeding estimates of $4.31, with net revenue of $8.6 billion, surpassing the $8.52 billion estimate, and cross-border volumes increased by 15% [2][9] - Kellanova (K) achieved adjusted EPS of 94 cents, higher than the estimated 87 cents, and net sales of $3.26 billion, exceeding the $3.24 billion estimate, although organic net sales declined by 0.5% [3][9] - Alphabet (GOOGL) shares rose 7.5% in pre-market trading after Q3 results showed EPS, revenue, and cloud revenue all exceeding analyst expectations [4][9] - Meta Platforms (META) experienced a 9% drop in shares due to a profit miss, reporting net income of $2.71 billion impacted by a $15.93 billion tax charge [5][9] - Microsoft (MSFT) shares fell 2.2% despite beating EPS and revenue estimates, with concerns over capital expenditure affecting investor sentiment [6][9] - Roblox (RBLX) reported Q3 bookings of $1.92 billion, significantly above the estimated $1.65 billion, and provided an optimistic Q4 outlook [7][9] Group 2: Economic and Geopolitical Commentary - Economic outlook from "Bessent" predicts "parallel prosperity" for Main Street and Wall Street in 2026, with expectations of strong job growth and consumer refunds in Q1 2026 [8][9] - US Energy Secretary Wright indicated potential US intervention in global energy markets if China reduces purchases from Russia and plans to supply South Korea with natural gas and oil [11][9]

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]. - Average Monthly Unique Payers are defined as user accounts that made a payment or redeemed a prepaid card during a month, with multiple purchases counted as a single payer[28]. - 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]. Financial Performance - Bookings represent sales activity in a given period, primarily from virtual currency sales, and are recorded in deferred revenue, recognized over the estimated average lifetime of a paying user, which was 27 months as of September 30, 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]. - Bookings are broken out by geographic region based on the billing country of payers, aiding in understanding global engagement and monetization[26]. Engagement Metrics - Total hours engaged are calculated as the aggregate of user session lengths, with tracking methodologies evolving as new features are developed[20][22]. Debt and Interest Rates - 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 $43.5 million as of September 30, 2025[259]. - The company issued $1.0 billion aggregate principal amount of the 2030 Notes, with interest payable semiannually and the entire principal due at maturity on May 1, 2030[261]. User Demographics - The company is implementing systems for additional user demographic data, including age verification, which will affect reported age demographics starting in Q3 2025[15].

Core Viewpoint - Roblox (RBLX.US) has raised its full-year revenue forecast, expecting Q4 revenue to be between $1.35 billion and $1.4 billion, with full-year revenue projected at $4.83 billion to $4.88 billion [1] Revenue Forecast - The company anticipates full-year bookings to be between $6.57 billion and $6.62 billion, an increase from the previous expectation of $5.87 billion to $5.97 billion [1]

User Engagement - Average Daily Active Users (DAUs) reached 151.5 million, up 70% year-over-year, with a 36% increase from Q2 2025[19] - Hours engaged on the platform grew to 39.6 billion, up 91% year-over-year[21] - The average monthly unique payers (MUPs) increased to 35.8 million, up 88% year-over-year[14] - The introduction of regional pricing has significantly increased payer penetration, particularly in markets like Indonesia[33] - The company anticipates reaching 10% of the global gaming content market and connecting one billion users[59] - The change in deferred revenue for Q3 2025 was $572,853, compared to $216,325 in Q3 2024, indicating increased user engagement[70] Financial Performance - Revenue for Q3 2025 was $1,359.6 million, reflecting a 48% year-over-year growth[14] - Bookings totaled $1,921.8 million, marking a 70% year-over-year increase[14] - Operating cash flow was $546.2 million, up 121% year-over-year[14] - Free cash flow reached $442.6 million, an increase of 103% year-over-year[14] - Q3 2025 revenue grew 48% year-over-year to $1,359.6 million, while bookings increased 70% year-over-year to $1,921.8 million[39] - Revenue for the nine months ended September 30, 2025, was $3,475,530, up 33% from $2,613,796 in the same period of 2024[70] Cost and Expenses - Total costs and expenses for Q3 2025 were $1,656.2 million, up 38.2% from $1,197.9 million in Q3 2024[56] - Developer exchange fees rose 85% year-over-year to $427.9 million, representing 31.5% of revenue and 22.3% of bookings in Q3 2025[42] - Stock-based compensation expense for Q3 2025 was $286,930, an increase from $265,165 in Q3 2024, reflecting ongoing investment in talent[70] Profitability and Loss - Consolidated net loss was $257.4 million, compared to $240.4 million in Q3 2024, while adjusted EBITDA was $45.7 million, down from $55.0 million in Q3 2024[43] - Net loss attributable to common stockholders for Q3 2025 was $255.6 million, compared to a loss of $239.3 million in Q3 2024, reflecting a 6.5% increase in losses[56] - The company anticipates a consolidated net loss between $(375) million and $(345) million for Q4 2025[47] - The consolidated net loss for Q3 2025 was $(257,371), slightly higher than $(240,447) in Q3 2024[70] Future Guidance - The company raised its guidance for average annual bookings growth to 37% across 2024 and 2025[15] - Q4 2025 revenue guidance is projected between $1,350 million and $1,400 million, reflecting year-over-year growth of 37-42%[47] - Bookings for Q4 2025 are expected to be between $2,000 million and $2,050 million, indicating year-over-year growth of 47-51%[47] - For the twelve months ending December 31, 2025, the revenue guidance is set between $4,825,530 and $4,875,530, with bookings expected between $6,566,155 and $6,616,155[74] Cash and Investments - Total cash, cash equivalents, and investments amounted to $5.2 billion as of September 30, 2025, an increase of $1.3 billion year-over-year[45] - Cash and cash equivalents at the end of Q3 2025 were $1,016.8 million, up from $602.6 million at the end of Q3 2024[58] - Net cash provided by operating activities for Q3 2025 was $546.2 million, a significant increase from $247.4 million in Q3 2024[58] Creator Economics - The top 1,000 creators earned an average of $1.1 million on a last twelve months (LTM) basis, up over 40% compared to the previous year[24] - The company expects to improve creator economics through regional pricing and investments in the creator community[59] Capital Expenditures - Capital expenditures for fiscal 2025 are projected at $468 million, an increase of $158 million over prior guidance[47]

Roblox reported its best quarter ever with daily active users beating analysts’ expectations on the heels of three hit games https://t.co/jRwsREyf9j ...

Core Insights - Roblox has raised its annual bookings forecast for the third time this year, driven by strong in-game spending on popular titles [1] - The company has surpassed 150 million daily active users, indicating robust engagement and growth in its user base [1] Financial Performance - The increase in bookings forecast reflects a positive trend in revenue generation from in-game purchases [1] - Viral titles such as "Steal a Brainrot" have significantly contributed to the company's financial success [1]