Roblox Corporation, a San Mateo, California-based company, operates an online entertainment platform that offers a free toolset for developers and creators to build, publish, and operate 3D experiences, as well as a free application for users to explore 3D digital worlds. In the fiscal year ended December 31, 2023, Roblox reported 68.4 million average daily active users (DAU), with approximately 852,000 average daily unique paying users. The average daily bookings per DAU was $0.14, while the average daily bookings per daily unique paying user was $11.32.
The company's primary areas of investment have been its developer and creator community, and the technology and infrastructure required to improve the Roblox Platform. In terms of key metrics, Roblox tracks hours engaged, bookings, average bookings per DAU, average new and returning monthly unique payers, monthly repurchase rate, and average bookings per monthly unique payer. The company reported $3,520,780,000 in bookings for the year ended December 31, 2023, up from $2,872,258,000 in the previous year. Additionally, Roblox reported free cash flow of $124,013,000 for the year ended December 31, 2023, compared to $(58,367,000) in the prior year.
In the first quarter of 2022, Roblox updated its estimated paying user life from 23 months to 25 months, and subsequently to 28 months in the third quarter of 2022. This change resulted in a decrease in revenue of $344.9 million and a decrease in cost of revenue of $79.3 million during the year ended December 31, 2022.
Roblox generates its revenue primarily through the sale of virtual content or access to virtual content to users, recognizing revenue over the estimated period of time the virtual items are available to the user on the Roblox Platform or at the time the virtual item is consumed. The company's revenue is recorded net of taxes and estimated chargebacks and refunds. Roblox reported $2,799,274,000 in revenue for the year ended December 31, 2023, up from $2,225,052,000 in the previous year.
Overall, Roblox Corporation has seen significant growth in its user base and financial metrics, with a focus on investing in its platform and community to drive future success.
The market has reacted to these announcements by moving the company's shares -1.9% to a price of $40.62. For more information, read the company's full 10-K submission here.
