Roblox Earnings

Investment Analysis Clubs Saul’s Investing Discussions
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In a word…Strong.

https://finance.yahoo.com/news/roblox-reports-third-quarter-…

"Year-over-year Revenue Up 102% to $509.3 Million; Bookings Up 28% to $637.8 Million; and Free Cash Flow of $170.6 million

SAN MATEO, Calif., November 08, 2021–(BUSINESS WIRE)–Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its third quarter 2021 financial results today and separately posted a letter to shareholders and supplemental materials on the Roblox investor relations website at ir.roblox.com.

Third Quarter 2021 Financial Highlights

Revenue increased 102% over Q3 2020 to $509.3 million

Net loss attributable to common stockholders for Q3 2021 was $74.0 million

Net cash provided by operating activities of $181.2 million; Free cash flow increased 7% over Q3 2020 to $170.6 million.

Bookings increased 28% over Q3 2020 to $637.8 million

Average Daily Active Users (DAUs) were 47.3 million, an increase of 31% year over year:

Hours Engaged were 11.2 billion, an increase of 28% year over year

Average Bookings per DAU (ABPDAU) was $13.49

For October 2021 key metric estimates, please refer to our Q3 2021 Shareholder Letter at ir.roblox.com.

“Engagement is our north star. We’re very pleased that during the third quarter, people of all ages from across the globe chose to spend over 11 billion hours on Roblox,” said David Baszucki, Chief Executive Officer of Roblox. “We are happy to report that the developer community earned over $130 million in the quarter and is on pace to earn well over $500 million this year. As we finish 2021 and head into 2022, we will continue to invest in innovative technology to enable our developer community to do what they do best - build and create.”

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Congrats on the bag holders. Unfortunately I sold most of my position this morning after being contemplated for a while. only have 1.5% at this point now. I have been tracking their numbers and the number looked really good. My main concern was that I didn’t really understand their model on turning into positive earning. I also had serious doubt on if their user has ability to make money in real life to spend in metaverse. I was scared due to the unknowns, much scared after what happened on LSPD (I had to sell 15% position) so I end up being very conservative.
Anyway, I guess I was wrong, and life is full of surprises.

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| Average Daily Active Users (DAUs) were 47.3 million, an increase of 31% year over year:
| Hours Engaged were 11.2 billion, an increase of 28% year over year

This was a pleasant surprise for me. It seemed likely that covid stay-at-home was pumping up engagement and that now kids are back in school, it would drop. However, reality is completely the opposite! I don’t understand it.

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I find this stock very interesting because my kids use it all the time. They are not surprised at all about the engagement. Many of their friends have started playing since those who were already on it were playing after school lets out.

I may make a small purchase in their accounts since they use it all the time, and I do see the potential for metaverse expansion that could be similar to SAAS expansion and have many of the same benefits. Of course, the risk is that it is entertainment and not something necessary for business to thrive or be more efficient.

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