Roblox(RBLX) - 2025 Q3 - Earnings Call Transcript

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]