Core Insights - Roblox reported revenue of $1.21 billion for the quarter ended March 2025, reflecting a year-over-year increase of 30.6% and surpassing the Zacks Consensus Estimate of $1.15 billion by 5.35% [1] - The company's EPS was -$0.32, an improvement from -$0.43 in the same quarter last year, with an EPS surprise of 21.95% compared to the consensus estimate of -$0.41 [1] Financial Performance Metrics - Bookings reached $1.21 billion, exceeding the average estimate of $1.15 billion from eight analysts [4] - Daily Active Users (DAUs) totaled 97.8 million, surpassing the estimated 92.95 million from five analysts [4] - Total Hours Engaged amounted to 21.7 billion, exceeding the average estimate of 20.4 billion from five analysts [4] Regional Performance - DAUs in the Rest of the World (ROW) were 28.2 million, compared to the estimated 26.86 million from four analysts [4] - DAUs in the Asia-Pacific (APAC) region reached 26.3 million, exceeding the estimate of 24.18 million from four analysts [4] - DAUs in the US & Canada were 19.7 million, slightly above the average estimate of 19.07 million from four analysts [4] - DAUs in Europe totaled 23.6 million, compared to the average estimate of 23.41 million from four analysts [4] Stock Performance - Roblox shares have returned +8.8% over the past month, while the Zacks S&P 500 composite has seen a decline of -0.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Group 1 - Roblox reported a quarterly loss of $0.32 per share, better than the Zacks Consensus Estimate of a loss of $0.41, and an improvement from a loss of $0.43 per share a year ago, representing an earnings surprise of 21.95% [1] - The company achieved revenues of $1.21 billion for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 5.35%, and up from $923.76 million in the same quarter last year [2] - Roblox has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has increased approximately 15.9% since the beginning of the year, contrasting with a decline of -5.3% in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for estimate revisions for Roblox is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3 - The current consensus EPS estimate for the upcoming quarter is -$0.32 on revenues of $1.17 billion, and for the current fiscal year, it is -$1.47 on revenues of $5.29 billion [7] - The Gaming industry, to which Roblox belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] Group 4 - Flutter Entertainment, another company in the gaming industry, is expected to report quarterly earnings of $1.66 per share, reflecting a year-over-year change of +1560%, with revenues anticipated to be $3.7 billion, up 8.9% from the previous year [9][10]

Q1 2025 Results - Revenue reached $1035 million, a 29% year-over-year growth[5] - Bookings totaled $1207 million, reflecting a 31% year-over-year increase[5] - Average Daily Active Users (DAUs) were 978 million, up 26% year-over-year[5] - Hours Engaged amounted to 217 billion, a 30% year-over-year growth[5] - Net loss was $(216) million[7] - Net cash provided by operating activities was $444 million[7] - Free cash flow reached $427 million, showing an 86% year-over-year growth[7] - Adjusted EBITDA was $58 million, a 123% year-over-year increase[7] Q2 2025 Guidance - Revenue is projected to be between $1020 million and $1045 million, a 14%-17% year-over-year increase[64] - Bookings are expected to range from $1165 million to $1190 million, indicating a 22%-25% year-over-year growth[64]

Financial Data and Key Metrics Changes - Q1 revenue reached $1,035 million, up 29% year on year, exceeding guidance of $990 million to $1,015 million [6] - Q1 bookings were $1,207 million, up 31% year on year, surpassing the high end of guidance which was $1,125 million to $1,150 million [6] - Q1 Daily Active Users (DAUs) were 97.8 million, up 26% year on year [6] - Cash from operations was $443 million, up 86% year on year, and free cash flow was $406 million, up 123% [10][33] - The company reported a strong balance sheet with $4.5 billion in gross cash and $3.5 billion in net cash [35] Business Line Data and Key Metrics Changes - Developer Exchange (DevEx) increased by 39% year on year to $281 million, representing 27% of revenue [12] - The top 100 creators earned an average of $6.7 million over the last twelve months, up 35% year on year [17] - Engagement hours reached 21.7 billion, up 30% year on year, with significant growth in various demographics [8][9] Market Data and Key Metrics Changes - DAU growth in the US and Canada was 22%, while APAC saw a 40% increase, Japan 48%, and India 77% year on year [7] - Engagement hours in Japan grew by 50% year on year, and in India by 78% [9] Company Strategy and Development Direction - The company aims to capture 10% of the gaming market by focusing on genre expansion and improving technology [21] - Emphasis on AI-driven operational efficiencies and creator success, with plans for enhanced monetization strategies [11][12] - The integration of advertising partnerships, including a collaboration with Google, to expand monetization opportunities [23][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience during potential economic downturns, citing past performance during recessions [51] - The focus remains on innovation as a key driver for growth, with a belief that the platform can thrive even in challenging economic conditions [52] Other Important Information - The company is enhancing its AI capabilities, including generative 3D and text generation tools for creators [26][81] - New parental controls were introduced to improve user safety [28] Q&A Session Summary Question: What steps will the company take to maintain growth from smaller developers? - Management highlighted tracking various genres and enhancing technology to support growth across the platform [39][41] Question: What is the status of the differential pricing initiative? - Management indicated that it is still in early stages but has shown positive results so far [44][46] Question: How does the company view macroeconomic conditions affecting consumer spending? - Management noted that the majority of users do not spend significant amounts, which may buffer against downturns [51][54] Question: What are the biggest opportunities for improving monetization? - Management emphasized focusing on genre expansion and improving bookings per hour through various initiatives [61][65] Question: What is the status of the Shopify partnership and e-commerce opportunities? - Management sees e-commerce as a strategic opportunity for future growth, although it is still in early phases [90][91]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $1,035 million, up 29% year on year, exceeding guidance of $990 million to $1,015 million [5] - Q1 bookings were $1,207 million, up 31% year on year, surpassing the high end of guidance which was $1,125 million to $1,150 million [5] - Q1 Daily Active Users (DAUs) reached 97.8 million, up 26% year on year [5] - Cash from operations was $443 million, up 86% year on year, exceeding guidance of $380 million [8] - Free cash flow in Q1 was $406 million, up 123%, also above guidance [8] - The company reported a strong balance sheet with $4.5 billion in gross cash and $3.5 billion in net cash [34] Business Line Data and Key Metrics Changes - Developer Exchange (DevEx) increased by 39% year on year to $281 million, representing 27% of revenue [11] - The company noted that the top 100 creators earned an average of $6.7 million over the last twelve months, up 35% year on year [16] Market Data and Key Metrics Changes - DAUs in the US and Canada grew by 22%, while APAC saw a 40% increase, Japan 48%, and India 77% year on year [6] - Engagement hours reached 21.7 billion, up 30% year on year, with significant growth in various regions [7] Company Strategy and Development Direction - The company aims to capture 10% of the gaming market by consumer spending, focusing on genre expansion and technological improvements [19] - Emphasis on AI-driven tools for operational efficiency and creator support, with plans for full 3D scene creation and interactive assets [25][81] - The company is enhancing its advertising capabilities through partnerships, including a collaboration with Google [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience during potential economic downturns, citing past performance during recessions [50] - The focus remains on innovation as a key driver for growth, with a belief that the platform can thrive even in challenging economic conditions [52] Other Important Information - The company is actively working on improving its search and discovery algorithms to enhance content visibility for creators [15] - The integration of differential pricing is still in early stages but shows promising results [42][44] Q&A Session Summary Question: What steps is the company taking to ensure continued growth from smaller developers? - The company is tracking various genres and believes that technological advancements will support growth across the platform [38] Question: What is the status of the differential pricing initiative? - The initiative is in its early stages, with positive early results, but it is too soon to determine its full impact [42][44] Question: How does the company view the potential impact of macroeconomic conditions on its business? - Management noted that the majority of users do not spend significant amounts, which may buffer against economic downturns [50] Question: What are the biggest opportunities for improving passive hourly monetization? - The focus is on genre expansion and increasing DAU, with ongoing efforts to optimize pricing and payment methods [60][63] Question: Can you discuss the Shopify partnership and its importance for e-commerce? - The Shopify integration is still in early phases, but the company sees significant potential for e-commerce growth on the platform [88][89]

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]. - 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]. - Total hours engaged are calculated as the aggregate of user session lengths, which may vary across devices and platforms, and are tracked to measure user engagement[20][21]. - The company is exploring technology to obtain greater granularity in user demographic estimates, which may affect comparability of metrics over time[15]. Financial Metrics - Bookings represent sales activity in a given period, primarily from virtual currency sales, and are recorded in deferred revenue, recognized over the estimated lifetime of a paying user, which was 27 months as of March 31, 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]. - The average new monthly unique payers are defined as user accounts making their first payment during a given month, while returning monthly unique payers are those who have made payments in the current and prior months[29][30]. - The monthly repurchase rate is calculated as returning monthly unique payers in the current month divided by the sum of the prior month's new and returning monthly unique payers[31]. Debt and Interest Rates - As of March 31, 2025, 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 $32.9 million[233]. - The company issued $1.0 billion aggregate principal amount of the 2030 Notes, with interest payable semiannually, and the entire principal amount due at maturity on May 1, 2030[235].

Exhibit 99.1 Roblox Reports First Quarter 2025 Financial Results Substantial year-over-year growth exceeds guidance across all key metrics SAN MATEO, Calif., May 1, 2025 - Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its first quarter 2025 financial and operational results and issued its second quarter and updated full year 2025 guidance today. Separately, Roblox posted a letter to shareholders and supplemental materials on the ...

Core Viewpoint - Roblox (RBLX) is expected to report a quarterly loss of $0.41 per share, a 4.7% increase in loss compared to the same period last year, with revenues forecasted at $1.15 billion, reflecting a year-over-year increase of 24% [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate for the quarter has been revised upward by 0.4%, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Key Metrics Projections - Analysts project 'Bookings' to reach $1.15 billion, up from $923.76 million in the same quarter last year [5] - 'Daily Active Users (DAUs)' are expected to be 92.95 million, compared to 77.7 million a year ago [5] - 'Total Hours Engaged' is forecasted to be 20.40 billion, an increase from 16.7 billion in the same quarter last year [5] Regional DAUs Estimates - 'Daily Active Users (DAUs) - ROW' is estimated at 26.86 million, up from 21.3 million in the same quarter last year [6] - 'Daily Active Users (DAUs) - APAC' is projected to be 24.18 million, compared to 18.8 million a year ago [6] - 'Daily Active Users (DAUs) - US & Canada' is expected to reach 19.07 million, up from 16.2 million in the same quarter last year [7] - 'Daily Active Users (DAUs) - Europe' is forecasted at 23.41 million, compared to 21.4 million in the same quarter last year [7] Stock Performance - Over the past month, Roblox shares have gained 12.7%, while the Zacks S&P 500 composite has decreased by 4.3%, indicating a potential outperformance of RBLX in the upcoming period [7]

Roblox (RBLX) closed at $66.58 in the latest trading session, marking a +1.35% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.74%. On the other hand, the Dow registered a gain of 0.05%, and the technology-centric Nasdaq increased by 1.26%.The online gaming platform's shares have seen an increase of 10.4% over the last month, surpassing the Consumer Discretionary sector's loss of 4.48% and the S&P 500's loss of 4.77%.The investment community will be paying close attention to the ea ...

Core Viewpoint - Shopify's shares have experienced a 15.4% decline since reaching a 52-week high on February 18, primarily due to macroeconomic challenges and potential trade wars, although a recent announcement regarding targeted tariffs led to a 4.87% increase in share price [1][2]. Financial Performance - Shopify is currently trading at a Price/Sales ratio of 12.46X, significantly higher than the broader sector's 5.88X, indicating that the stock is overvalued with a Value Score of F [2]. - The Zacks Consensus Estimate for Shopify's 2025 earnings is $1.49 per share, reflecting a year-over-year growth of 14.62%, while the revenue estimate stands at $10.86 billion, indicating a 22.3% growth [16]. Market Position and Strategy - Shopify has been expanding its merchant base, benefiting from innovative tools like Shop Pay and the Shop App, which have contributed to a 39.1% appreciation in shares year-to-date, outperforming the Zacks Computer & Technology and Internet Services industries [7]. - The company plans to shift to a three-month paid trial in certain markets to enhance merchant retention, although this may negatively impact monthly recurring revenue (MRR) growth in the near term [5]. Product and Feature Development - Shopify has introduced over 150 new features to its platform, aimed at enhancing merchant operations and efficiency [10]. - The company is increasing its AI capabilities to assist both new and larger merchants in scaling their businesses [13]. Partnerships and Collaborations - Shopify continues to strengthen its partnerships with major brands and platforms such as TikTok, Instagram, and PayPal, which enhances its payment offerings and sales channels [14][15]. Conclusion - Shopify's growth in its merchant base and strategic focus on improving client offerings are seen as positive catalysts for long-term growth, despite facing macroeconomic challenges and a stretched valuation [19].