Roblox(RBLX) - 2025 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 2025 was $1,080.7 million, representing a 21% year-over-year increase[6] - Bookings reached $1,437.6 million, up 51% year-over-year[6] - Adjusted EBITDA for Q2 2025 was $18.4 million, excluding a total net increase in deferred revenue of $301.5 million[6] - Free cash flow increased to $176.7 million, a 58% year-over-year increase[6] - Revenue for the three months ended June 30, 2025, was $1,080,677, an increase of 21% compared to $893,543 for the same period in 2024[18] - Total cost and expenses for the three months ended June 30, 2025, were $1,403,137, up from $1,131,492 in the same period of 2024, representing a 24% increase[18] - Consolidated net loss for the three months ended June 30, 2025, was $279,800, compared to a net loss of $207,195 for the same period in 2024, reflecting a 35% increase in losses[18] - Adjusted EBITDA for Q2 2025 was $18,360,000, compared to $66,525,000 in Q2 2024, indicating a decline[28] User Engagement - Average Daily Active Users (DAUs) increased to 111.8 million, a 41% year-over-year growth[6] - Hours engaged on the platform were 27.4 billion, reflecting a 58% year-over-year rise[6] - Average monthly unique payers were 23.4 million, up 42% year-over-year, with average bookings per payer at $20.48[6] Guidance and Projections - The company raised its full-year 2025 revenue guidance to between $4,390 million and $4,490 million[11] - Updated full-year bookings guidance is set between $5,870 million and $5,970 million[11] - Consolidated net loss for the full year is projected to be between $(1,261) million and $(1,201) million[11] - Updated guidance for Q3 2025 projects revenue between $1,110,000,000 and $1,160,000,000[29] - Bookings guidance for Q3 2025 is estimated to be between $1,590,000,000 and $1,640,000,000[29] - Consolidated net loss for Q3 2025 is projected to be between $(396,000,000) and $(366,000,000)[29] - Free cash flow guidance for Q3 2025 is expected to be between $330,000,000 and $360,000,000[29] Expenses and Costs - Developer exchange fees increased to $316,371 for the three months ended June 30, 2025, compared to $208,270 in the same period of 2024, marking a 52% increase[18] - Research and development expenses for the three months ended June 30, 2025, were $384,996, up from $361,684 in the same period of 2024, a rise of 6%[18] Cash and Liquidity - Cash and cash equivalents at the end of the period were $994,570, a decrease from $1,158,680 at the beginning of the period[21] - Free cash flow for the six months ended June 30, 2025, was positive, indicating liquidity after capital expenditures[25] Revenue Recognition - Bookings are primarily generated from sales of virtual currency, which are recorded in deferred revenue and recognized over the estimated lifetime of a paying user[23] - The company updated its estimated paying user life from 28 months to 27 months, impacting revenue and cost of revenue by $58.9 million and $12.4 million, respectively, for the three months ended June 30, 2024[18] Company Vision - The company aims to strengthen its social fabric and support economic growth through its innovative platform[30] - Roblox continues to focus on creating a safe and optimistic community for users to explore and share experiences[30]