Roblox(US:RBLX)2024-08-02 10:22Revenue Performance - Revenue for Q2 2024 reached $893.5 million, a 31.3% increase from $680.8 million in Q2 2023[32] - Total revenue for the six months ended June 30, 2024, was $1,694,843 thousand, up from $1,336,110 thousand in the same period of 2023, representing a year-over-year increase of approximately 27%[59] - The company reported total revenue of $893.5 million for the three months ended June 30, 2024, compared to $900 million for the same period in 2023, reflecting a slight decline[151] - Revenue increased by $212.8 million, or 31%, for the three months ended June 30, 2024, compared to the same period in 2023, reaching $893.5 million[198] - Revenue for the six months ended June 30, 2024, increased by $358.7 million, or 27%, totaling $1.694 billion compared to $1.336 billion in 2023[199] Cost and Expenses - Total cost and expenses for Q2 2024 were $1.13 billion, up from $994.8 million in Q2 2023, resulting in a loss from operations of $237.9 million[32] - Cost of revenue increased by $36.5 million, or 23%, for the three months ended June 30, 2024, totaling $198.6 million[200] - For the six months ended June 30, 2024, cost of revenue increased by $63.6 million, or 20%, amounting to $377.4 million[203] - Developer exchange fees rose by $42.4 million, or 26%, for the three months ended June 30, 2024, totaling $208.3 million[204] - Developer exchange fees increased by $62.4 million, or 18%, for the six months ended June 30, 2024, compared to the same period in 2023[205] Net Loss and Financial Position - The net loss attributable to common stockholders for Q2 2024 was $205.9 million, compared to a loss of $282.8 million in Q2 2023[32] - Consolidated net loss for Q2 2024 was $207,195 thousand, a decrease from $284,841 thousand in Q2 2023, representing a 27.3% improvement year-over-year[35] - Total comprehensive loss for Q2 2024 was $207,814 thousand, compared to $298,571 thousand in Q2 2023, indicating a 30.4% reduction[35] - The accumulated deficit as of June 30, 2024, reached $3,536,740 thousand, up from $2,459,397 thousand a year earlier, reflecting ongoing financial challenges[40] - The net loss attributable to common stockholders for the three months ended June 30, 2024, was $205.9 million, or a loss of $0.32 per share[196] User Engagement Metrics - DAUs are tracked as an indicator of audience engagement, with potential inaccuracies due to fraud and unauthorized access[16] - The average daily active users (DAUs) for the three months ended June 30, 2024, was 79.5 million, with only approximately 983,000 being average daily unique paying users, indicating a small portion of users are payers[140] - The average lifetime of a paying user decreased from 28 months in Q1 2024 to 27 months in Q2 2024, affecting revenue recognition[20] - The average new monthly unique payers were 11.9, showing a consistent influx of new users to the platform[162] - Average Returning Monthly Unique Payers reached 18 in the latest reporting period, indicating a steady growth in user engagement[162] Stock-Based Compensation - Stock-based compensation expense for Q2 2024 was $251,891 thousand, compared to $212,362 thousand in Q2 2023, marking an increase of 18.6%[40] - Total stock-based compensation expense for the three months ended June 30, 2024, was $251.9 million, compared to $212.4 million for the same period in 2023, reflecting a year-over-year increase of 18.6%[197] - The Company had 35,718 thousand stock options outstanding as of June 30, 2024, down from 40,159 thousand as of December 31, 2023[101] - The Company granted 10,606 thousand RSUs during the six months ended June 30, 2024, with an average fair value grant date of $39.05[102] - The total subsequent stock-based compensation expense to be recognized as of the Modification Date was $84.4 million, with 75% allocated to the 2024 CEO PSU Award and 25% to RSUs[105] Cash Flow and Liquidity - Cash flows from operating activities provided $390,395 thousand for the six months ended June 30, 2024, compared to $202,171 thousand in the same period of 2023, indicating a significant increase in operational cash flow[43] - The company reported a net cash increase of $287,940 thousand for the six months ended June 30, 2024, compared to a decrease of $2,457,210 thousand in the same period of 2023[43] - Total cash and cash equivalents at the end of the period were $966,406 thousand, up from $520,264 thousand at the end of June 30, 2023[43] - The company’s cash equivalents include $907,229 thousand in money market funds as of June 30, 2024[65] - Free cash flow for the six months ended June 30, 2024, was $302,644, a significant improvement compared to a negative free cash flow of $(13,603) in the same period last year[174] Future Outlook and Strategic Initiatives - The company is investing in high fidelity avatars, AI tools, and other social features to enhance user engagement and platform value[141] - The company plans to implement changes in response to regulatory requirements focused on child and internet safety, which may impact user engagement and revenue[141] - The company intends to invest in and expand its advertising business for future revenue growth[177] - Research and development expenses are expected to increase due to higher headcount aimed at developing new features and innovations[189] - The company plans to increase sales and marketing expenses to support business growth in the foreseeable future[191]