RBLX
$36.42
Roblox Corp Cl A
$1.94
5.63%
Earnings Details
1st Quarter March 2022
Tuesday, May 10, 2022 4:05:00 PM
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Summary

Roblox Corp Cl A Reports In-line

Roblox Corp Cl A (RBLX) reported a 1st Quarter March 2022 loss of $0.27 per share on revenue of $537.1 million. The consensus estimate was a loss of $0.21 per share on revenue of $641.8 million. The Earnings Whisper number was for a loss of $0.27 per share. Revenue grew 38.8% on a year-over-year basis.

Results
Reported Earnings
($0.27)
Earnings Whisper
($0.27)
Consensus Estimate
($0.21)
Reported Revenue
$537.1 Mil
Revenue Estimate
$641.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Roblox Reports First Quarter 2022 Financial Results

Revenue up 39% over prior year up to $537.1 million

Strong year over year growth in Daily Active Users and Hours Engaged, up 28% and 22%, respectively

SAN MATEO, Calif.--(BUSINESS WIRE)--Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its first quarter 2022 financial results today and separately posted a letter to shareholders and supplemental materials on the Roblox investor relations website at ir.roblox.com.

First Quarter 2022 Financial Highlights

  • Revenue increased 39% over Q1 2021 to $537.1 million
  • Net cash provided by operating activities of $156.4 million; Free cash flow was $104.6 million
  • Bookings decreased -3% over Q1 2021 to $631.2 million
  • Average Daily Active Users (DAUs) were 54.1 million, an increase of 28% year over year
  • Hours Engaged were 11.8 billion, an increase of 22% year over year
  • Average Bookings per DAU (ABPDAU) was $11.67

April 2022 Key Metric Estimates

  • Revenue was between $189 million - $192 million, up 30% - 32% year over year
  • Bookings were between $221 million and $224 million, down 8% - 10% year over year
  • DAUs were 53.1 million, up 23% year over year
  • Hours Engaged were 3.8 billion, up 18% year over year
  • ABPDAU were between $4.16 - $4.22, down 25% - 26% year over year

"We remained focused on delivering our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors," said David Baszucki, chief executive officer of Roblox. "Over the past two quarters, we have launched a number of notable innovations including spatial voice and layered clothing that will continue driving user growth, engagement and monetization."

Earnings Q&A Session

Roblox will host a live Q&A session to answer questions regarding their first quarter 2022 results on Wednesday, May 11, 2022 at 5:30 a.m. Pacific Time. The webcast will be open to the public at ir.roblox.com or by clicking here.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our business, product and investment strategy and growth plans, our expectation of successfully executing such strategies and plans and our expectations for our April financial and operational results. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “continue,” “project,” “plan,” “goals,” “opportunity,” “appeal,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our Annual Report on Form 10-K filed for the fiscal year ended December 31, 2021 and other filings and reports we make with the SEC from time to time. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs; the impact of our senior notes and any future indebtedness on our business, financial condition and results of operations; the demand for our platform in general; our ability to increase our number of new users and revenue generated from users; our ability to retain and expand our user base; the impact on our business of the COVID-19 pandemic restrictions and the easing of those restrictions as vaccinations become more prevalent; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods, including as a result of changes in our accounting estimates; our ability to successfully develop and deploy new technologies to address the needs of our users; our ability to maintain and enhance our brand and reputation; our ability to hire and retain talent; news or social media coverage about Roblox, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; any breach or access to user or third-party data; and our ability to maintain the security and availability of our platform. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from our expectations is included in the reports we have filed or will file with the SEC, including our Annual Report Form 10-K for the fiscal year ended December 31, 2021.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.

ROBLOX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par values)
(unaudited)
As of
March 31,December 31,

 

2022

 

 

2021

 

 
Assets
Current assets:
Cash and cash equivalents

$

3,132,964

 

$

3,004,300

 

Accounts receivable—net of allowances

 

179,732

 

 

307,349

 

Prepaid expenses and other current assets

 

43,123

 

 

32,091

 

Deferred cost of revenue, current portion

 

398,194

 

 

406,025

 

Total current assets

 

3,754,013

 

 

3,749,765

 

Property and equipment—net

 

338,879

 

 

271,352

 

Operating lease right-of-use assets

 

286,242

 

 

221,285

 

Deferred cost of revenue, long term

 

159,404

 

 

137,524

 

Intangible assets, net

 

55,854

 

 

59,666

 

Goodwill

 

118,071

 

 

118,071

 

Other assets

 

3,368

 

 

2,933

 

Total assets.

$

4,715,831

 

$

4,560,596

 

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable

$

54,295

 

$

64,395

 

Accrued expenses and other current liabilities

 

223,323

 

 

180,769

 

Developer exchange liability

 

149,816

 

 

163,906

 

Deferred revenue—current portion

 

1,747,294

 

 

1,758,022

 

Total current liabilities

 

2,174,728

 

 

2,167,092

 

Deferred revenue—net of current portion

 

724,359

 

 

616,834

 

Operating lease liabilities

 

259,841

 

 

194,616

 

Long-term debt, net

 

988,034

 

 

987,723

 

Other long-term liabilities

 

1,408

 

 

1,408

 

Total liabilities

 

4,148,370

 

 

3,967,673

 

Commitments and contingencies
Stockholders' Equity
Common stock, $0.0001 par value; 5,000,000 and 5,000,000 authorized as of March 31, 2022, and December 31, 2021, respectively, 592,196 and 585,878 shares issued and outstanding as of March 31, 2022, and December 31, 2021, respectively; Class A common stock—4,935,000 and 4,935,000 shares authorized as of March 31, 2022, and December 31, 2021, respectively, 540,858 and 534,541 shares issued and outstanding as of March 31, 2022, and December 31, 2021, respectively; Class B common stock—65,000 and 65,000 shares authorized as of March 31, 2022, and December 31, 2021, respectively, 51,337 and 51,337 shares issued and outstanding as of March 31, 2022, and December 31, 2021, respectively

 

59

 

 

58

 

Additional paid-in capital

 

1,705,201

 

 

1,568,638

 

Accumulated other comprehensive income/(loss)

 

(30

)

 

62

 

Accumulated deficit

 

(1,144,143

)

 

(983,941

)

Total Roblox Corporation stockholders' equity

 

561,087

 

 

584,817

 

Noncontrolling interests

 

6,374

 

 

8,106

 

Total stockholders' equity

 

567,461

 

 

592,923

 

Total liabilities and stockholders' equity

$

4,715,831

 

$

4,560,596

 

ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
 
Three Months Ended March 31,

 

2022

 

 

2021

 

Revenue(1)

$

537,134

 

$

386,976

 

Cost and expenses:
Cost of revenue(1)(2)

 

135,632

 

 

97,937

 

Developer exchange fees

 

147,122

 

 

118,938

 

Infrastructure and trust & safety

 

141,355

 

 

94,136

 

Research and development

 

177,762

 

 

96,644

 

General and administrative

 

57,772

 

 

94,375

 

Sales and marketing

 

29,102

 

 

20,002

 

Total cost and expenses

 

688,745

 

 

522,032

 

Loss from operations

 

(151,611

)

 

(135,056

)

Interest income

 

245

 

 

5

 

Interest expense

 

(9,999

)

 

-

 

Other income/(expense), net

 

(379

)

 

(1,050

)

Loss before income taxes

 

(161,744

)

 

(136,101

)

Provision for/(benefit from) income taxes

 

276

 

 

2

 

Consolidated net loss

 

(162,020

)

 

(136,103

)

Net loss attributable to the noncontrolling interest

 

(1,818

)

 

(1,886

)

Net loss attributable to common stockholders

$

(160,202

)

$

(134,217

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.27

)

$

(0.46

)

Weighted-average shares used in computing net loss per share attributable to common
stockholders – basic and diluted

 

588,521

 

 

291,074

 

 
 
(1) In Q1 of 2022 our estimated user life changed from 23 months to 25 months. Based on the carrying amount of deferred revenue and deferred cost of revenue as of December 31, 2021, the change resulted in a decrease in revenue and cost of revenue during the three months ended March 31, 2022, by $82.5 million and $19.6 million, respectively.
(2) Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.
ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Three Months Ended March 31,

 

2022

 

 

2021

 

Cash flows from operating activities:
Consolidated net loss

$

(162,020

)

$

(136,103

)

Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operations:
Depreciation and amortization

 

24,497

 

 

16,620

 

Stock-based compensation expense

 

112,295

 

 

50,744

 

Operating lease non-cash expense

 

13,997

 

 

10,044

 

Other non-cash charges/(credits)

 

(567

)

 

(52

)

Amortization of debt issuance costs

 

311

 

 

-

 

Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable

 

128,183

 

 

13,256

 

Accounts payable

 

(3,768

)

 

(782

)

Prepaid expenses and other current assets

 

(10,940

)

 

(10,967

)

Other assets

 

(435

)

 

(3,401

)

Developer exchange liability

 

(14,090

)

 

3,425

 

Accrued expenses and other current liabilities

 

(2,066

)

 

16,273

 

Other long-term liability

 

-

 

 

304

 

Operating lease liabilities

 

(11,709

)

 

(2,069

)

Deferred revenue

 

96,797

 

 

269,439

 

Deferred cost of revenue

 

(14,049

)

 

(62,262

)

Net cash provided by operating activities

 

156,436

 

 

164,469

 

Cash flows from investing activities:
Acquisition of property and equipment

 

(51,790

)

 

(22,133

)

Purchases of intangible assets

 

-

 

 

(256

)

Net cash used in investing activities

 

(51,790

)

 

(22,389

)

Cash flows from financing activities:
Proceeds from issuance of common stock

 

24,328

 

 

30,221

 

Payment of withholding taxes related to net share settlement of restricted stock units

 

(150

)

 

-

 

Net proceeds from issuance of preferred stock

 

-

 

 

534,286

 

Payment of debt issuance cost

 

(154

)

 

-

 

Net cash provided by financing activities

 

24,024

 

 

564,507

 

 
Effect of exchange rate changes on cash and cash equivalents

 

(6

)

 

-

 

 
Net increase in cash and cash equivalents

 

128,664

 

 

706,587

 

Cash and cash equivalents
Beginning of period

 

3,004,300

 

 

893,943

 

End of period

$

3,132,964

 

$

1,600,530

 

 
Supplemental disclosure of cash flow information:
Cash paid for interest

 

-

 

 

-

 

Cash paid for income taxes

 

-

 

 

-

 

 
Supplemental disclosure of noncash investing and financing activities:
Property and equipment additions in accounts payable and accrued expenses

$

86,813

 

$

9,476

 

Conversion of convertible preferred stock to common stock upon direct listing

 

-

 

 

879,113

 

Use of Non-GAAP Financial Measures

This press release and the accompanying tables contain the non-GAAP financial measures bookings, free cash flow, and Adjusted EBITDA.

We use this non-GAAP financial information to evaluate our ongoing operations, for internal planning and forecasting purposes, and ongoing operating trends for purposes of analyzing the covenants specified in the indenture governing our senior notes due 2030. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance.

Bookings is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Bookings is equal to the amount of virtual currency purchased by users in a given period of measurement. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Free cash flow represents the net cash provided by operating activities less purchases of property, equipment, and intangible assets. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property, equipment, and intangible assets, can be used for strategic initiatives, including investing in our business, making strategic acquisitions, and strengthening our balance sheet. Adjusted EBITDA is a measure of operating performance used in certain covenant calculations specified in the indenture governing our senior notes due 2030 that is not calculated in accordance with GAAP and may not conform to the calculation of EBITDA in other circumstances. Adjusted EBITDA should not be considered as a substitute for net loss as determined in accordance with GAAP. We believe that, when considered together with reported amounts, Adjusted EBITDA is useful to investors and management in understanding our ongoing operations and ongoing operating trends for purposes of analyzing the covenants specified in the indenture governing our senior notes due 2030.

Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.

A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.

 
Three Months Ended March 31,

 

2022

 

 

2021

 

(dollars in thousands)
Bookings

$

631,206

 

$

652,277

 

 
The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented:
 
Three Months Ended March 31,

 

2022

 

 

2021

 

(dollars in thousands)
Reconciliation of revenue to bookings:
Revenue

$

537,134

 

$

386,976

 

Add (deduct):
Change in deferred revenue

 

96,797

 

 

269,439

 

Other

 

(2,725

)

 

(4,138

)

Bookings

$

631,206

 

$

652,277

 

 

 

Three Months Ended March 31,

 

2022

 

 

2021

 

(dollars in thousands)
Free cash flow

$

104,646

 

$

142,080

 

 
The following table presents a reconciliation of net cash from operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented:
 
Three Months Ended March 31,

 

2022

 

 

2021

 

(dollars in thousands)
Reconciliation of net cash from operating activities to free cash flow:
Net cash provided by operating activities

$

156,436

 

$

164,469

 

Add (deduct):
Acquisition of property and equipment

 

(51,790

)

 

(22,133

)

Purchases of intangible assets

 

-

 

 

(256

)

Free cash flow

$

104,646

 

$

142,080

 

 
 
Acquisition of property and equipment primarily includes servers, infrastructure equipment and tenant improvements.
 
 
Three Months Ended March 31,

 

2022

 

 

2021

 

(dollars in thousands)
Adjusted EBITDA

$

67,929

 

$

190,174

 

 
 
 
The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to adjusted EBITDA, for each of the periods presented:
Three Months Ended March 31,

 

2022

 

 

2021

 

Reconciliation of consolidated net loss to adjusted EBITDA:(dollars in thousands)
Consolidated net loss

$

(162,020

)

$

(136,103

)

Add (deduct):
Interest income

 

(245

)

 

(5

)

Interest expense

 

9,999

 

 

-

 

Other income/(expense), net

 

379

 

 

1,050

 

Provision for/(benefit from) income taxes

 

276

 

 

2

 

Depreciation and amortization

 

24,497

 

 

16,620

 

Stock-based compensation expense

 

112,295

 

 

50,744

 

Change in deferred revenue

 

96,797

 

 

269,439

 

Change in deferred cost of revenue

 

(14,049

)

 

(62,262

)

Fees related to equity offering

 

-

 

 

50,689

 

Adjusted EBITDA

$

67,929

 

$

190,174

 

About Roblox

Roblox’s mission is to connect a billion people with optimism and civility. Every day, tens of millions of people around the world have fun with friends as they explore millions of immersive digital experiences. All of these experiences are built by the Roblox community, made up of millions of creators. We believe in building a safe, civil, and diverse community—one that inspires and fosters creativity and positive relationships between people around the world. For more information, please visit corp.roblox.com.

ROBLOX and the Roblox logo are among the registered and unregistered trademarks of Roblox Corporation in the United States and other countries. © 2022 Roblox Corporation. All rights reserved.

Source: Roblox Corporation

Stefanie Notaney
Roblox Corporate Communications
press@roblox.com

Source: Roblox