Roblox is doubling down on AI and creator tools, even as costs climb. It’s betting that automation, infrastructure, and partnerships will turn creativity into its core currency.Once a kids’ playground, Roblox is now global and aging up fast. Users 13+ are its fastest-growing group, reshaping monetization and fueling more sophisticated digital experiences.Roblox’s Q3 2025 revenue soared 48% to $1.36 billion and bookings 70% to $1.92 billion, but it still posted a $257 million loss.With scale comes complexity ...

Roblox reported a revenue miss when it announced Q3 earnings. But average daily active users were 151.5 million, a 70% year-over-year increase. ...

TRENDING: You Don't Have To Dig Far To Cash In On Rare Earths Kid-centric online service Roblox (RBLX) on Thursday beat expectations for the third quarter and guided higher than views for the current period. But Roblox stock fell after the report. Based on the midpoint of its guidance, Roblox expects bookings in the fourth quarter of $2.03 billion, vs. the consensus estimate of $1.84 billion. In Q4 last year, it generated bookings of $1.36 billion. "Our third-quarter results demonstrate the tremendous progr ...

Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $1.36 billion, up 48% year-on-year, while bookings were $1.92 billion, up 70% year-on-year [7][8][16] - Daily Active Users (DAUs) hit 151.5 million, representing a 70% increase year-on-year, with significant growth across all regions [5][6] - Engagement hours totaled 39.6 billion, up 91% year-on-year, with notable increases in both U.S. and Canada (47%) and APAC (127%) [7][8] Business Line Data and Key Metrics Changes - The number of experiences with over 10 million DAUs reached 7 million, including five new experiences created in the last 12 months [4][5] - Developer Exchange (DevEx) earnings reached $427.9 million, up 85% year-on-year, and have grown 250% from two years ago [7][8][10] Market Data and Key Metrics Changes - Bookings in APAC increased by 110% year-on-year, with specific highlights including Japan (125%), India (146%), and Indonesia (804%) [7][8] - Monthly unique payers grew to 35.8 million, up 88% year-on-year, indicating strong market penetration [7][8] Company Strategy and Development Direction - The company aims to capture 10% of the global gaming content market, currently at 3.2%, up from 2.3% last year [4] - Investments in technology and infrastructure are focused on genre expansion, including competitive genres like shooters and sports [8][10] - The company is enhancing its discovery system to promote new creators and experiences, ensuring long-term ecosystem health [9][46] 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][21] - The company is optimistic about the adoption of new technologies and their impact on future growth, despite tough comparisons in 2026 [19][39] Other Important Information - The company has launched an IP platform to connect IP holders and creators, enhancing the creator ecosystem [10] - A partnership with the Attorney General's Alliance on child safety has been established, focusing on improving safety measures on the platform [11][12] Q&A Session Summary Question: AI Infrastructure and User Experience - The CEO discussed the potential of AI and GPU investments to enhance user experiences and real-time content generation [24][25] Question: Competition and Creator Economics - The CEO emphasized the importance of overall creator economics beyond just the DevEx rate, highlighting the platform's user base and creative tools [29][30] Question: Age Cohorts and Investment Priorities - Management noted the ability to attract older users through new game genres and emphasized aligning technical roadmaps with market trends [33][34] Question: Bookings Growth Guidance - The CFO clarified that specific guidance for 2026 is premature, citing both potential tailwinds and headwinds affecting growth expectations [39] Question: Advertising as a Growth Strategy - Management acknowledged the potential for advertising but emphasized the importance of organic growth and partnerships with creators for user acquisition [55][56] Question: Developer Growth and Investment Yield - The CEO highlighted the healthy growth of top developers and the expectation of immediate benefits from AI investments [61][62]

Group 1 - Roblox Corporation is recognized as a promising stock, with Roth Capital analyst Eric Handler raising the price target to $146 from $138, citing ongoing platform strength due to advanced game development, improved discovery, and better monetization [1][2] - The collaboration between Roblox Corporation and Mattel Inc. aims to launch a new series of games on the Roblox platform, starting with the title Monster High, which debuted on October 24 [2] - The partnership with Mattel is part of a broader strategy to extend physical play into the virtual realm, with plans for additional standalone games featuring other popular franchises [2] Group 2 - Roblox operates an immersive platform for connection and communication both in the US and internationally, indicating its global reach and potential for growth [3] - While Roblox shows investment potential, there are suggestions that certain AI stocks may offer greater upside potential and lower downside risk [3]

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 Supplemental Materials October 30, 2025 Forward-Looking Statements This presentation and the live webcast and Q&A session which will be held at 530 a.m. Pacific Time/830 a.m. Eastern Time on Thursday, October 30, 2025 contain "forward-looking statementsˮ within the meaning of the "safe harborˮ provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion users with optimism and civility, our vision to reach 10 ...

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]