Roblox Corporation Revenue & Financials

Roblox Corporation generated $3.604 billion in GAAP revenue for fiscal year 2024, representing a 28.8% year-over-year increase from $2.799 billion in FY2023, driven by a 31.2% increase in bookings to $4.124 billion, reflecting strong growth in daily active users, engagement, and monetization across all demographics and geographies. The company's gross margin on a bookings basis was approximately 33%, with the remaining 67% consumed by payable to app stores (24%), developer exchange (18%), trust and safety (12%), and infrastructure (13%), while the GAAP gross margin was 78%, reflecting the smoothing effect of the company's deferred revenue recognition policy. Operating expenses totaled $2.65 billion in FY2024, dominated by research and development ($1.3 billion), general and administrative ($730 million), and sales and marketing ($620 million), resulting in a GAAP operating loss of $1.05 billion and a net loss of $1.15 billion, or $1.82 per diluted share. However, on a non-GAAP adjusted EBITDA basis, which excludes stock-based compensation ($630 million), depreciation, and amortization, the company generated $380 million in adjusted EBITDA, representing an adjusted EBITDA margin of approximately 9% of bookings, indicating that the core business is generating positive cash flow from operations. The company's balance sheet remains exceptionally strong, with $3.1 billion in cash, cash equivalents, and short-term investments at the end of FY2024, and no long-term debt, providing it with significant financial flexibility to continue investing in growth initiatives, navigate the complex regulatory environment, and weather any macroeconomic headwinds. The company's cash flow from operations was $650 million in FY2024, while free cash flow was $420 million, reflecting the strong underlying cash generation of the business and the company's ability to fund its growth initiatives without relying on external capital. The company's strategic focus for the next three to five years is centered on increasing its non-GAAP adjusted EBITDA margin by optimizing its cost structure, increasing the monetization rate per daily active user, and scaling its platform to achieve greater operating leverage, with the goal of achieving sustained GAAP profitability in the latter half of the decade. The company's financial trajectory remains exceptionally strong, with bookings growing at a compound annual growth rate of over 30% since 2019, and the underlying fundamentals of the business, including the strong growth in bookings, the expanding user base, and the increasing engagement metrics, remain exceptionally strong, providing a solid foundation for the company's long-term growth and success.