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Press release content from Business Wire. The AP news staff was not involved in its creation.

Roblox Reports Second Quarter 2021 Financial Results

August 16, 2021 GMT

SAN MATEO, Calif.--(BUSINESS WIRE)--Aug 16, 2021--

Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its second 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.

Second Quarter 2021 Financial Highlights

  • Revenue increased 127% over Q2 2020 to $454.1 million
  • Net Loss for Q2 2021 was $140.1 million
  • Net cash provided by operating activities increased 64% over Q2 2020 to $191.2 million
  • Bookings increased 35% over Q2 2020 to $665.5 million
  • Free Cash Flow increased more than 70% over Q2 2020 to $168.0 million
  • Average Daily Active Users (DAUs) were 43.2 million, an increase of 29% year over year driven by:
    • 42% growth in DAUs outside of the US/Canada compared to Q2 2020
    • 46% growth in DAUs over the age of 13 compared to Q2 2020
  • Hours Engaged were 9.7 billion, an increase of 13% year over year primarily driven by:
    • 27% growth in engagement in markets outside of the US/Canada compared to Q2 2020
    • 29% growth from users over the age of 13 compared to Q2 2020
  • Average Bookings per DAU (ABPDAU) was $15.41, a slight increase year over year

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July 2021 Key Metric Estimates

  • Daily active users were 46.6 million, up 28% from July of last year, up 8% compared to 43.3 million in June 2021
  • Hours engaged were 3.8 billion, up 22% year over year and up 16% compared to 3.3 billion in June 2021
  • Bookings were between $221 million and $224 million, up 19% - 21% year over year and up sequentially 10% - 11% from June 2021 when bookings were $201.7 million
  • Average bookings per DAU were between $4.75 - $4.81, down 5% - 7% year over year and up 2% - 3% sequentially from June 2021
  • Revenue was between $161 million - $163 million, up 111% - 113% year over year and 2% - 4% sequentially from June 2021

“Our continued growth demonstrates the importance of our mission and the power of our platform,” said David Baszucki, Chief Executive Officer of Roblox. “These results are fueled both by our creator ecosystem and by the millions of people around the globe who want to connect and share new experiences every day on Roblox.”

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“In the quarter ending June 30, 2021, cash from operations and free cash flow continued at record levels. The third quarter is off to a strong start with our highest levels of users and engagement to date,” said Michael Guthrie, Chief Financial Officer of Roblox. “We will continue to invest in our developer community, hire top engineering talent, and build out the infrastructure required to scale Roblox globally.”

Earnings Q&A Session

Roblox will host a live Q&A session to answer questions regarding their second quarter 2021 results on Tuesday, August 17, 2021 at 5:30 a.m. Pacific Time. The webcast will be open to the public at ir.roblox.com.

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 international growth and ability to reach an older audience, investment strategy, and business strategy and growth plans. 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,” “continued,” “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 Quarterly Report on Form 10-Q filed for the fiscal quarter ended March 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 demand for our platforms 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; 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 of the Company, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; and any breach or access to user or third-party data. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Company’s expectations is included in the reports we have filed or will file with the SEC, including our Quarterly Report Form 10-Q for the fiscal quarter ended March 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.

Use of Non-GAAP Financial measures

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

We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. 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 time. 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.

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.

About Roblox

Roblox’s mission is to build a human co-experience platform that enables shared experiences among billions of users. 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. © 2021 Roblox Corporation. All rights reserved.

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

June 30,

December 31,

2021

2020

 
Assets
Current assets:
Cash and cash equivalents

$

1,780,262

 

$

893,943

 

Accounts receivable—net of allowances

 

217,010

 

 

246,986

 

Prepaid expenses and other current assets

 

45,432

 

 

26,274

 

Deferred cost of revenue, current portion

 

351,573

 

 

256,928

 

Total current assets

 

2,394,277

 

 

1,424,131

 

Property and equipment—net

 

218,581

 

 

206,415

 

Operating lease right-of-use assets

 

228,232

 

 

-

 

Deferred cost of revenue, long term

 

127,011

 

 

113,793

 

Intangible assets, net

 

38,079

 

 

42,326

 

Goodwill

 

59,568

 

 

59,568

 

Other assets

 

8,043

 

 

1,567

 

Total assets

$

3,073,791

 

$

1,847,800

 

Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable

$

11,112

 

$

12,012

 

Accrued expenses and other current liabilities

 

182,084

 

 

65,392

 

Developer exchange liability

 

90,615

 

 

80,912

 

Deferred revenue—current portion

 

1,488,200

 

 

1,070,230

 

Total current liabilities

 

1,772,011

 

 

1,228,546

 

Deferred revenue—net of current portion

 

551,665

 

 

484,699

 

Operating lease liabilities

 

206,376

 

 

-

 

Other long term liabilities

 

1,700

 

 

22,109

 

Total liabilities

 

2,531,752

 

 

1,735,354

 

Commitments and contingencies
Convertible Preferred Stock
Convertible preferred stock, Series A, B, C, D, D-1, E, F, and G $0.0001 par value, zero and 349,522 shares authorized as of June 30, 2021, and December 31, 2020, respectively; zero and 337,235 shares issued and outstanding as of June 30, 2021, and December 31, 2020, respectively; aggregate liquidation preference of zero and $335,654 as of June 30, 2021, and December 31, 2020, respectively

 

-

 

 

344,827

 

Stockholders' Equity (Deficit)
Preferred stock; $0.0001 par value per share; 100,000 and zero shares authorized as of June 30, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively

 

-

 

 

-

 

Common stock, $0.0001 par value; 5,000,000 and 740,000 authorized as of June 30, 2021, and December 31, 2020, respectively, 574,595 and 201,327 shares issued and outstanding as of June 30, 2021, and December 31, 2020, respectively; Class A common stock—4,935,000 and 675,000 shares authorized as of June 30, 2021, and December 31, 2020, respectively; 521,008 and 144,039 shares issued and outstanding as of June 30, 2021, and December 31, 2020, respectively; Class B common stock—65,000 shares authorized as of June 30, 2021, and December 31, 2020, respectively, 53,587 and 57,287 shares issued and outstanding as of June 30, 2021, and December 31, 2020, respectively

 

57

 

 

20

 

Additional paid-in capital

 

1,293,160

 

 

239,792

 

Accumulated other comprehensive income

 

114

 

 

90

 

Accumulated deficit

 

(766,641

)

 

(492,290

)

Total Roblox Corporation stockholders' equity (deficit)

 

526,690

 

 

(252,388

)

Noncontrolling interests

 

15,349

 

 

20,007

 

Total stockholders' equity (deficit)

 

542,039

 

 

(232,381

)

Total liabilities, convertible preferred stock, and stockholders' equity (deficit)

$

3,073,791

 

$

1,847,800

 

 
ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,

2021

2020

2021

2020

Revenue

$

454,100

 

$

200,392

 

$

841,076

 

$

361,962

 

Cost and expenses:
Cost of revenue (1)

 

116,930

 

 

53,669

 

 

214,867

 

 

95,462

 

Developer exchange fees

 

129,714

 

 

85,052

 

 

248,652

 

 

129,551

 

Infrastructure and trust & safety

 

108,986

 

 

61,853

 

 

203,122

 

 

114,473

 

Research and development

 

124,748

 

 

40,249

 

 

221,392

 

 

89,658

 

General and administrative

 

97,678

 

 

18,707

 

 

192,053

 

 

49,265

 

Sales and marketing

 

18,990

 

 

13,908

 

 

38,992

 

 

29,565

 

Total cost and expenses

 

597,046

 

 

273,438

 

 

1,119,078

 

 

507,974

 

Loss from operations

 

(142,946

)

 

(73,046

)

 

(278,002

)

 

(146,012

)

Interest income

 

26

 

 

294

 

 

31

 

 

1,541

 

Other income/(expense), net

 

10

 

 

494

 

 

(1,040

)

 

(2,663

)

Loss before provision for income taxes

 

(142,910

)

 

(72,258

)

 

(279,011

)

 

(147,134

)

Provision for income taxes

 

20

 

 

5

 

 

22

 

 

6

 

Consolidated net loss

 

(142,930

)

 

(72,263

)

 

(279,033

)

 

(147,140

)

Net loss attributable to the noncontrolling interest

 

(2,796

)

 

(742

)

 

(4,682

)

 

(1,240

)

Net loss attributable to common stockholders

$

(140,134

)

$

(71,521

)

$

(274,351

)

$

(145,900

)

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

$

(0.25

)

$

(0.40

)

$

(0.63

)

$

(0.83

)

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

 

571,300

 

 

180,336

 

 

432,159

 

 

174,939

 

 
 
(1) Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.

 

ROBLOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Six Months Ended June 30,

2021

2020

Cash flows from operating activities:
Consolidated net loss

$

(279,033

)

$

(147,140

)

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

 

34,410

 

 

18,852

 

Stock-based compensation expense

 

132,403

 

 

49,666

 

Change in fair value of warrants

 

-

 

 

1,890

 

Operating lease non-cash expense

 

20,544

 

 

-

Other non-cash charges/(credits)

16

1,721

Changes in operating assets and liabilities:
Accounts receivable

 

29,960

 

 

(84,119

)

Accounts payable

 

2,313

 

 

(988

)

Prepaid expenses and other current assets

 

(27,264

)

 

(6,835

)

Other assets

 

(6,476

)

 

1,392

 

Developer exchange liability

 

9,703

 

 

25,155

 

Accrued expenses and other current liabilities

 

74,129

 

 

9,834

 

Other long term liability

 

584

 

 

1,836

 

Operating lease liabilities

 

(12,642

)

 

-

 

Deferred revenue

 

484,936

 

 

384,303

 

Deferred cost of revenue

 

(107,863

)

 

(95,442

)

Net cash provided by operating activities

 

355,720

 

 

160,125

 

Cash flows from investing activities:
Acquisition of property and equipment

 

(45,368

)

 

(26,249

)

Purchases of short-term investments

 

-

 

 

(5,991

)

Maturities of short-term investments

 

-

 

 

36,000

 

Purchases of intangible assets

 

(256

)

 

(579

)

Net cash provided by (used in) investing activities

 

(45,624

)

 

3,181

 

Cash flows from financing activities:
Proceeds from issuance of preferred stock for warrant exercises

 

-

 

 

147

 

Proceeds from issuance of common stock

 

41,889

 

 

5,996

 

Net proceeds from issuance of preferred stock

 

534,286

 

 

149,669

 

Net cash provided by financing activities

 

576,175

 

 

155,812

 

 
Effect of exchange rate changes on cash and cash equivalents

 

48

 

 

(3

)

 
Net increase in cash and cash equivalents

 

886,319

 

 

319,115

 

Cash and cash equivalents
Beginning of year

 

893,943

 

 

301,493

 

End of year

$

1,780,262

 

$

620,608

 

 
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

$

10,820

 

$

16,343

 

Conversion of convertible preferred stock to common stock upon direct listing

$

879,113

 

$

-

 

 
Three Months Ended June 30,Six Months Ended June 30,

2021

2020

2021

2020

(dollars in thousands)(dollars in thousands)
Bookings

$

665,480

 

$

494,171

 

$

1,317,757

 

$

743,747

 

 
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 June 30,Six Months Ended June 30,

2021

2020

2021

2020

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

$

454,100

 

$

200,392

 

$

841,076

 

$

361,962

 

Add (deduct):
Change in deferred revenue

 

215,497

 

 

295,534

 

 

484,936

 

 

384,303

 

Other

 

(4,117

)

 

(1,755

)

 

(8,255

)

 

(2,518

)

Bookings

$

665,480

 

$

494,171

 

$

1,317,757

 

$

743,747

 

Six Months Ended June 30,

2021

2020

(dollars in thousands)
Free cash flow

$

310,096

 

$

133,297

 

 
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:
 
Six Months Ended June 30,

2021

2020

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

$

355,720

 

$

160,125

 

Add (deduct):
Acquisition of property and equipment

 

(45,368

)

 

(26,249

)

Purchases of intangible assets

 

(256

)

 

(579

)

Free cash flow

$

310,096

 

$

133,297

 

 
 
Acquisition of property and equipment primarily includes servers, infrastructure equipment and tenant improvements.

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210816005113/en/

CONTACT: Anna Yen

Roblox Investor Relations

ir@roblox.comStefanie Notaney

Roblox Corporate Communications

press@roblox.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: ENTERTAINMENT OTHER ENTERTAINMENT TECHNOLOGY MOBILE ENTERTAINMENT SOFTWARE INTERNET ELECTRONIC GAMES

SOURCE: Roblox Corporation

Copyright Business Wire 2021.

PUB: 08/16/2021 04:04 PM/DISC: 08/16/2021 04:04 PM

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