Part I [Business Overview](index=10&type=section&id=Item%201.%20Business) Roblox operates a free-to-use immersive platform for connection and communication, driven by user-generated content and social network effects. - Roblox operates a free-to-use immersive platform where millions of users create, play, and connect in experiences built by a global community of creators. The platform is comprised of the Roblox Client, Roblox Studio, and Roblox Cloud[39](index=39&type=chunk)[40](index=40&type=chunk) Key User Metrics (Year Ended Dec 31, 2024) | Metric | Value | | :--- | :--- | | Average Daily Active Users (DAUs) | 82.9 million | | Countries with DAUs | Over 180 | | Total Hours Engaged | 73.5 billion | | Average Hours per DAU per Day | 2.4 hours | | Average Daily Unique Paying Users | ~1.0 million | Developer and Creator Earnings | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Developer & Creator Earnings | $922.8 million | $740.8 million | | Registered in DevEx Program | >24,500 | >16,500 | | Exchanged Robux for Fiat | >17,000 | N/A | - The company reduced the minimum Robux required for the Developer Exchange Program from 50,000 to **30,000** on January 31, 2023, to incentivize the creator community[51](index=51&type=chunk) [Products and Technology](index=13&type=section&id=Our%20Products%20and%20Technology) The Roblox Platform is built on three core elements: the Roblox Client for user experience, Roblox Studio for creation, and Roblox Cloud for infrastructure. - The platform consists of three main components: Roblox Client (user application), Roblox Studio (free creation toolset), and Roblox Cloud (services and infrastructure)[40](index=40&type=chunk)[56](index=56&type=chunk) - As of December 31, 2024, the Roblox Cloud uses over **140,000 servers** and operates from data centers in **23 cities** across North America, Asia-Pacific, and Europe[73](index=73&type=chunk) - Roblox Studio leverages AI tools like Assistant, Code Assist, and Materials Generator to simplify content creation for developers of all skill levels[78](index=78&type=chunk) [The Roblox Economy and Business Model](index=19&type=section&id=The%20Roblox%20Economy) Roblox's economy is built on its virtual currency, Robux, with revenue generated from a small percentage of paying users. - The business model is free-to-use, with revenue generated from a small portion of users purchasing Robux. In 2024, only **~1.0 million** of the **82.9 million** average DAUs were daily unique paying users[102](index=102&type=chunk)[103](index=103&type=chunk) Monetization Metrics (Year Ended Dec 31, 2024) | Metric | Value | | :--- | :--- | | Avg. Daily Bookings per DAU | $0.14 | | Avg. Daily Bookings per Daily Unique Paying User | $11.48 | - Developers and creators can convert earned Robux to fiat currency at an exchange rate of **$0.0035 per Robux** as of December 31, 2024, through the Developer Exchange Program[107](index=107&type=chunk) - When a virtual item is sold, the creator typically receives **30%** of the Robux, the seller/distributor receives **40%**, and the platform receives **30%**. If a creator sells their own item in their own experience, they receive **70%**[106](index=106&type=chunk) [Safety and Digital Civility](index=18&type=section&id=Safety%20and%20Digital%20Civility) Roblox prioritizes creating a safe and civil online environment through a multi-layered moderation system and compliance with regulations. - Safety is the highest priority, with strict policies and a multi-layered moderation system combining AI and thousands of human moderators to review content and enforce Community Standards[94](index=94&type=chunk)[99](index=99&type=chunk) - During the year ended December 31, 2024, the company evaluated over **400 million assets** (images, audio, video) before they appeared on the platform[91](index=91&type=chunk) - The company partners with leading safety groups like WeProtect Global Alliance and the Technology Coalition, and is a founding member of the Lantern program for cross-platform signal sharing to promote child safety[96](index=96&type=chunk) [Competition](index=23&type=section&id=Competition) Roblox competes for user attention and developer talent with a wide range of global technology, entertainment, and gaming companies. - Competes for user attention with tech giants (Amazon, Apple, Meta, Google), entertainment companies (Disney), gaming companies (Activision Blizzard, Epic Games), and social platforms (TikTok, Instagram)[116](index=116&type=chunk) - Competes for developers and creators with game engine and distribution platforms such as Epic Games, Unity, and Valve Corporation[117](index=117&type=chunk) [Human Capital](index=26&type=section&id=Human%20Capital) As of December 31, 2024, Roblox employed 2,474 full-time employees, with a majority in product and engineering roles. - As of December 31, 2024, the company had **2,474 full-time employees**, with approximately **77%** (over **1,800**) in product and engineering functions[133](index=133&type=chunk) - The company completed its return-to-office (RTO) plan in the summer of 2024, requiring certain remote employees to relocate to the San Mateo headquarters[134](index=134&type=chunk) [Risk Factors](index=28&type=page&id=Item%201A.%20Risk%20Factors) The company faces significant risks, including a history of net losses, reliance on third-party platforms, and evolving global regulations. - **Financial Risk:** The company has a history of net losses (**$1.15 billion** in 2023, **$935.4 million** in 2024) and may not achieve future profitability due to increasing operating expenses[143](index=143&type=chunk) - **Regulatory Risk:** The business is subject to evolving laws worldwide concerning online safety (UK's OSA, EU's DSA), privacy (GDPR, CCPA), and protection of minors (COPPA), which could increase costs, require platform changes, or restrict operations[147](index=147&type=chunk)[149](index=149&type=chunk)[242](index=242&type=chunk)[244](index=244&type=chunk) - **Operational Risk:** Dependence on third-party operating systems (Apple, Google) and their app stores is a major risk, as they control distribution and take a significant share of revenue (up to **30%**). Platform outages or security breaches could severely harm user trust and business operations[157](index=157&type=chunk)[160](index=160&type=chunk)[178](index=178&type=chunk) - **Reputational Risk:** The ability to provide a safe online environment, particularly for children, is critical. Failure to prevent inappropriate content or behavior could dramatically harm the brand and business[164](index=164&type=chunk) - **Concentration Risk:** Voting control is concentrated in the company's Founder, David Baszucki, who holds **100%** of the Class B common stock, each with **20 votes per share**, limiting public stockholders' influence[286](index=286&type=chunk) [Cybersecurity](index=65&type=page&id=Item%201C.%20Cybersecurity) Roblox maintains an enterprise-wide information security program to manage cybersecurity risks, overseen by its CISO and the Audit and Compliance Committee. - The company has an enterprise-wide security program to identify, protect, detect, and respond to cybersecurity threats, integrated into its overall risk management[305](index=305&type=chunk) - Oversight is managed by the Chief Information Security Officer (CISO) and the Audit and Compliance Committee (ACC) of the Board of Directors, which receives at least quarterly briefings from the CISO[307](index=307&type=chunk)[312](index=312&type=chunk)[315](index=315&type=chunk) - During the last fiscal year, the company did not identify any cybersecurity threats that had a material effect on its business strategy, results of operations, or financial condition[317](index=317&type=chunk) [Properties](index=67&type=section&id=Item%202.%20Properties) As of January 1, 2025, Roblox relocated its corporate headquarters to a new leased office complex in San Mateo, California. - The company relocated its corporate headquarters to a new **752,546 sq. ft.** leased facility in San Mateo, CA, on January 1, 2025[319](index=319&type=chunk) - Roblox operates several data centers in the U.S. and internationally in locations including France, Germany, Hong Kong, Japan, Singapore, the Netherlands, India, Australia, and the UK[321](index=321&type=chunk) [Legal Proceedings](index=67&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a consolidated class action lawsuit alleging minors used third-party virtual casinos. - A putative class action, Colvin v. Roblox, was filed on August 1, 2023, alleging that minors used third-party virtual casinos to gamble Robux. A similar case, Gentry v. Roblox, was filed and consolidated with it[619](index=619&type=chunk)[620](index=620&type=chunk) - The court dismissed fraud-based claims but allowed claims for negligence, unjust enrichment, and violations of California's Unfair Competition Law to proceed. The company denies the claims and discovery is underway[620](index=620&type=chunk) Part II [Market for Common Equity and Related Matters](index=68&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Roblox's Class A common stock trades on the NYSE, and the company has never paid cash dividends, retaining earnings for business expansion. - Class A common stock trades on the NYSE under the symbol "**RBLX**" since March 10, 2021[327](index=327&type=chunk) - The company has never declared or paid cash dividends and does not expect to in the foreseeable future[331](index=331&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=70&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2024, Roblox saw continued growth in user engagement and monetization, with revenue increasing 29% to $3.60 billion. Key Financial and Operating Metrics (FY 2024 vs FY 2023) | Metric | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $3,602.0 M | $2,799.3 M | 29% | | Bookings (Non-GAAP) | $4,369.1 M | $3,520.8 M | 24% | | Net Loss | ($935.4 M) | ($1,151.9 M) | (19%) | | Adjusted EBITDA (Non-GAAP) | $180.2 M | ($170.7 M) | N/A | | Free Cash Flow (Non-GAAP) | $641.3 M | $124.0 M | 417% | | Avg. DAUs | 82.9 M | 68.9 M | 20% | | Hours Engaged | 73.5 B | 60.0 B | 22% | - Effective April 1, 2024, the company updated its estimated paying user life from **28 months to 27 months**. This change increased fiscal year 2024 revenue by **$98.0 million** and cost of revenue by **$20.4 million**[380](index=380&type=chunk)[512](index=512&type=chunk) [Results of Operations (2024 vs. 2023)](index=82&type=section&id=Results%20of%20Operations) For the year ended December 31, 2024, revenue grew by $802.7 million (29%) to $3.6 billion, while total costs and expenses rose 15%. Comparison of Results of Operations (in thousands) | Line Item | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | **$3,601,979** | **$2,799,274** | **29%** | | Cost of revenue | $801,162 | $649,115 | 23% | | Developer exchange fees | $922,821 | $740,752 | 25% | | Infrastructure and trust & safety | $915,418 | $878,361 | 4% | | Research and development | $1,444,207 | $1,253,598 | 15% | | General and administrative | $407,507 | $390,055 | 4% | | Sales and marketing | $174,181 | $146,460 | 19% | | **Total costs and expenses** | **$4,665,296** | **$4,058,341** | **15%** | | **Loss from operations** | **($1,063,317)** | **($1,259,067)** | **(15%)** | | **Net loss attributable to common stockholders** | **($935,384)** | **($1,151,946)** | **(19%)** | - The **4%** increase in Infrastructure and trust & safety costs was driven by higher personnel and data center expenses, but was significantly offset by a **$25.7 million** decrease in moderation and customer support costs due to efficiency gains from AI-driven tools[412](index=412&type=chunk)[413](index=413&type=chunk) [Liquidity and Capital Resources](index=85&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2024, Roblox's principal sources of liquidity were $4.0 billion in cash, cash equivalents, and investments. Cash and Investments (in billions) | As of December 31, | 2024 | 2023 | | :--- | :--- | :--- | | Cash, cash equivalents, and investments | $4.0 | $3.2 | Summary of Cash Flows (in millions) | Cash Flow | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $822.3 | $458.2 | | Net cash used in investing activities | ($852.1) | ($2,825.1) | | Net cash from financing activities | $65.9 | $67.2 | - The company has **$1.0 billion** in aggregate principal of **3.875% Senior Notes due 2030**. As of Dec 31, 2024, the net carrying amount was **$991.7 million** and the estimated fair value was **$901.5 million**[605](index=605&type=chunk)[611](index=611&type=chunk)[613](index=613&type=chunk) [Critical Accounting Policies and Estimates](index=88&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Roblox's critical accounting policies involve significant management judgment, particularly in revenue recognition and stock-based compensation. - **Revenue Recognition:** A critical estimate is the average lifetime of a paying user, used to recognize revenue from durable virtual items. This was updated from **28 to 27 months** in Q2 2024[442](index=442&type=chunk)[447](index=447&type=chunk)[448](index=448&type=chunk) - **Stock-Based Compensation:** The company uses the Black-Scholes model for options and ESPP rights, requiring subjective assumptions for expected term and volatility. The fair value of RSUs is based on the stock price at grant[449](index=449&type=chunk)[450](index=450&type=chunk)[451](index=451&type=chunk) - On March 1, 2024, the company cancelled the original CEO Long-Term Performance Award and granted a new award. This was treated as a modification, with the remaining unrecognized expense of **$84.4 million** to be recognized over the new service period[456](index=456&type=chunk)[647](index=647&type=chunk)[649](index=649&type=chunk) [Consolidated Financial Statements and Supplementary Data](index=92&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) The consolidated financial statements for the year ended December 31, 2024, present Roblox's financial position and results of operations. Consolidated Balance Sheet Data (in thousands) | As of December 31, | 2024 | 2023 | | :--- | :--- | :--- | | **Total Assets** | **$7,175,003** | **$6,168,078** | | Total Current Assets | $3,728,030 | $3,275,413 | | **Total Liabilities** | **$6,966,349** | **$6,099,452** | | Deferred Revenue (Current + Long-term) | $4,571,976 | $3,779,542 | | Long-term debt, net | $1,006,371 | $1,005,000 | | **Total Stockholders' Equity** | **$208,654** | **$68,626** | Consolidated Statement of Operations Data (in thousands) | For the Year Ended December 31, | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Revenue | $3,601,979 | $2,799,274 | $2,225,052 | | Total costs and expenses | $4,665,296 | $4,058,341 | $3,148,836 | | Loss from operations | ($1,063,317) | ($1,259,067) | ($923,784) | | **Consolidated net loss** | **($940,614)** | **($1,158,937)** | **($934,141)** | | Net loss per share, basic and diluted | ($1.44) | ($1.87) | ($1.55) | - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion and identified Revenue Recognition as a Critical Audit Matter due to the significant judgment in estimating customer life and the allocation between consumable and durable virtual items[473](index=473&type=chunk)[474](index=474&type=chunk)[475](index=475&type=chunk) [Note 11: Stock-Based Compensation](index=123&type=section&id=Note%2011.%20Stock-Based%20Compensation) Total stock-based compensation expense for 2024 was $1.016 billion, up from $868 million in 2023, with the majority allocated to R&D. Stock-Based Compensation Expense (in thousands) | Category | 2024 | 2023 | | :--- | :--- | :--- | | Infrastructure and trust & safety | $113,708 | $92,147 | | Research and development | $723,326 | $607,593 | | General and administrative | $138,444 | $131,577 | | Sales and marketing | $40,316 | $36,650 | | **Total** | **$1,015,794** | **$867,967** | - On March 1, 2024, the CEO's 2021 Long-Term Performance Award was cancelled and replaced with a new PSU and RSU award. This modification resulted in **$84.4 million** of unrecognized stock-based compensation to be expensed over the new award's vesting period[647](index=647&type=chunk)[649](index=649&type=chunk) - In Q1 2024, new PSU awards were granted to executives tied to cumulative bookings and Adjusted EBITDA performance over a two-year period ending Dec 31, 2025[654](index=654&type=chunk) [Controls and Procedures](index=136&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024. - Management concluded that both disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2024[694](index=694&type=chunk)[695](index=695&type=chunk) - The independent registered public accounting firm issued an unqualified audit report on the effectiveness of the company's internal control over financial reporting[695](index=695&type=chunk) [Other Information](index=137&type=section&id=Item%209B.%20Other%20Information) Several key executives and directors adopted Rule 10b5-1 trading arrangements during the fourth quarter of 2024. - Several directors and officers adopted Rule 10b5-1 trading plans in Q4 2024, including: - **CEO David Baszucki:** Sale of up to **8,781,047 shares** and gift of up to **1,914,015 shares**, expiring Feb 2026[699](index=699&type=chunk)[700](index=700&type=chunk) - **CFO Michael Guthrie:** Sale of up to **500,000 shares**, expiring Nov 2025[701](index=701&type=chunk) - **Director Anthony Lee:** Sale of up to **660,000 shares**, expiring Mar 2026[702](index=702&type=chunk) - **Director Greg Baszucki:** Sale of up to **1,168,650 shares** and gift of up to **350,595 shares**, expiring Mar 2026[703](index=703&type=chunk) - **CLO Mark Reinstra:** Sale of up to **310,000 shares**, expiring May 2026[704](index=704&type=chunk) - **CPSO Arvind Chakravarthy:** Sale of up to **143,194 shares** plus additional shares from vested equity, expiring Dec 2025[705](index=705&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=138&type=section&id=Items%2010-14) Information related to Directors, Executive Officers, and Corporate Governance is incorporated by reference from the company's forthcoming 2025 proxy statement. - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the forthcoming 2025 Proxy Statement[709](index=709&type=chunk)[710](index=710&type=chunk)[711](index=711&type=chunk)[712](index=712&type=chunk)[713](index=713&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=139&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the exhibits filed as part of the Annual Report on Form 10-K, with financial statement schedules omitted. - This section contains the index of all exhibits filed with or incorporated by reference into the Form 10-K[716](index=716&type=chunk)[718](index=718&type=chunk)

Summary of Key Points Core Viewpoint - Roblox (NYSE: RBLX) experienced a 25% stock rally following a previous article discussing its growth potential, but subsequently saw a 30% decline after a disappointing Q4 earnings report [1]. Company Analysis - The stock's performance indicates volatility, with significant fluctuations in response to earnings reports, highlighting investor sensitivity to financial results [1]. - The company is positioned within the technology sector, focusing on growth stocks that prioritize innovation and scalability [1]. Market Context - The investment strategy employed involves long-short strategies that leverage macroeconomic trends, suggesting a focus on navigating market cycles effectively [1]. - The overall sentiment in the market reflects a cautious approach towards high-valuation stocks, particularly in the tech sector, as evidenced by the stock's recent performance [1].

Core Insights - Roblox's share prices fell after the company issued disappointing guidance, despite a strong start to the year with a 13.5% increase year-to-date and a 48% rise over the past year [1] Financial Performance - Bookings for Q4 rose 21% year-over-year to $1.36 billion, but fell short of analyst expectations of $1.37 billion [4] - Daily active users grew 19% to 85.3 million, below the analyst consensus of 88.2 million, indicating potential revenue challenges [5] - Overall revenue increased 32% year-over-year to $988.2 million, with adjusted EBITDA improving from a loss of $44.8 million to a gain of $65.6 million [6] Stock-Based Compensation - The company recorded $258.2 million in stock-based compensation expenses for the quarter and $1 billion for the year, leading to a 5% increase in share count from 681.3 million to 714.7 million [7] Future Guidance - For Q1, Roblox forecasts bookings between $1.125 billion and $1.150 billion, with revenue expected to be between $990 million and $1.015 billion [9] - The company projects 2025 bookings of $5.2 billion to $5.3 billion, revenue between $4.245 billion and $4.345 billion, and adjusted EBITDA of $190 million to $265 million [8][10] Strategic Initiatives - Roblox aims to capture 10% of all gaming content spending on its platform, currently at 2.4% [10] - The company is integrating artificial intelligence to enhance user experience and platform safety [11] Market Position - Roblox is exploring additional monetization options through advertisements and shopping opportunities, with notable partnerships including Amazon and Shopify [12]

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Group 1 - The analysis is intended for informational purposes and should not be considered professional investment advice [3]. - There is a clear statement that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [4]. - The article expresses that the views or opinions may not reflect those of the platform as a whole, indicating a diversity of perspectives among analysts [4].

Group 1 - Roblox Corporation (NYSE: RBLX) was one of the best-performing stocks in the last year, recovering from a short report and a tech glitch that initially caused a decline in its stock price [1] - The company operates a 3D gaming platform that has shown significant resilience and potential for growth [1] Group 2 - The article suggests that investors should consider positioning themselves in undervalued stocks that are mispriced by the market as February approaches [1] - The investing group Out Fox The Street offers various features including model portfolios, stock picks with identifiable catalysts, daily updates, and real-time alerts to assist investors [1]

Core Viewpoint - Roblox Corp reported fiscal fourth-quarter 2024 bookings growth of 21% to $1.36 billion, slightly missing analyst estimates, while adjusted EPS loss was better than expected, leading to a price target increase from $60 to $72 by Needham analyst Bernie McTernan [1][2]. Group 1: Financial Performance - Fiscal fourth-quarter 2024 bookings were $1.36 billion, a 21% increase, but below the $1.37 billion estimate [1]. - Adjusted EPS loss was 33 cents, outperforming the consensus estimate of a 44 cents loss [1]. - First-quarter bookings are expected to be between $1.125 billion and $1.150 billion, slightly above the consensus of $1.14 billion [2]. Group 2: Market Expectations - There was a significant rise in bookings growth expectations, with investors shifting from a 20% CAGR to a 25% or 30% CAGR, although reported deceleration was noted [4]. - The guidance for first-quarter bookings indicates a solid 23% growth, but this is against elevated expectations following a 74% stock increase since the third quarter [5]. Group 3: Growth Drivers - Mobile and desktop bookings grew by 26% in the fourth quarter, with December growth at 27% [6]. - Management aims to capture 10% of the global gaming content market, up from the current 2.4%, which is contingent on technological advancements [6]. - New genres like shooters and sports show potential for growth, although it is still early in their development [7]. Group 4: Margin and EBITDA Estimates - McTernan estimates that a shift of 7% of bookings from mobile/console to desktop is needed to break even on gross margin, with each additional 5% shift contributing a 9% increase to adjusted EBITDA [8]. - Adjusted EBITDA estimates for fiscal 2025E increased by 6%, but estimates for fiscal 2026E and 2027E were lowered by 2% and 7%, respectively, due to reduced operating leverage assumptions [9].

Core Insights - Roblox aims to capture 10% of the global gaming content market, currently holding only 2.4% [1] - Recent earnings report showed bookings and daily active users below estimates, leading to an 11% drop in shares [1] - CEO Baszucki emphasized that the company is on track to meet its content goals, having exceeded previous guidance [1] Recent Ventures - Roblox has integrated brands from popular movies like Wicked and Beetlejuice, and features content from the NFL, NBA, and YouTube creator Mr. Beast [2] - The company is leveraging artificial intelligence to enhance user safety, particularly for its child user base [2] Future Directions - Roblox is exploring immersive experiences beyond gaming, including digital ecommerce partnerships with Shopify [3] - The long-term vision focuses on immersive 3D environments for various applications, emphasizing safety and civility [3]

Group 1: Electronic Arts (EA) - EA missed fiscal third-quarter earnings and revenue expectations, leading to a cut in its full-year sales outlook [2] - The company announced a $1 billion share buyback program, resulting in a 7.6% stock gain, the largest since May 2022 [2] - EA shares have decreased by 18.4% over the past three months, distancing from a 52-week low of $115.21 [2] Group 2: Roblox Corp (RBLX) - RBLX experienced a 13.6% decline, trading at $65.24, despite previously hitting multi-year highs [3] - The company reported smaller-than-expected losses per share for the fourth quarter, but missed revenue expectations and provided a dismal annual bookings forecast [3] - RBLX has seen a significant increase of 115.4% over the last nine months [3] Group 3: Take-Two Interactive (TTWO) - TTWO shares were down 0.7% at $183.69 ahead of the fiscal third-quarter results announcement [4] - The stock has a long-term support level at $177 and has gained 32.5% over the past three months [4] - Options markets are anticipating a 10% price swing post-earnings, which is larger than the 5.5% average move over the last two years [4]

Shares of video game platform Roblox (RBLX -13.93%) crashed on Thursday after the company reported financial results for the fourth quarter of 2024 that exceeded expectations. Yes, financial results were better than expected, but investors are nonetheless worried about some trends in the business. And that's why Roblox stock was down 11% as of 11 a.m. ET.Certain trends overshadow otherwise strong financialsThis is admittedly a complicated story and market reaction.In isolation, Roblox's numbers were good. Q ...

Here's our initial take on Roblox's (RBLX -11.18%) fourth-quarter financial report.Key MetricsMetricQ4 2023Q4 2024Changevs. ExpectationsRevenue$749.9 million$988.2 million32%MissedEarnings per share-$0.52-$0.33N/MBeatBookings$1.127 billion$1.36 billion21%MissedDaily active users (DAUs)71.5 million85.3 million19%n/aRoblox fails to live up to high hopesRoblox's per-share loss was less than expected in the fourth quarter, but it missed expectations on revenue and bookings. Bookings, which is the better indicat ...