Roblox (RBLX) 9 Nov 222022 Q3 Earnings call transcript

Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the Roblox Q3 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. now Director, turn Financial would to conference I Notaney, Stefanie Communications. Instructions] like the to over [Operator Please go ahead.

results. is Good morning, CFO, to XXXX session joining Mike our me everyone, and thank discuss you Guthrie. Roblox' Baszucki; CEO; David Roblox' for Q&A With and today QX

remarks we on this Before start, opening our for of some website ir.roblox.com. On morning, Investor we rest to shareholder will letter brief that earlier remind Relations reserve we a everyone and call, the make questions. want your this I the published and earnings results at time

question today. For where at our making may allotted limited strategy. webcast call, in your best participants, please financial but type questions business, not can as bottom note questions. financial we On screen forward-looking our including and the be the as your expectations take do of results our to future have icon we to of in We'll statements, the and today's you many possible business time

subject are uncertainties including including those actual to forward-looking to and statements our are factors, recently in filings, most Forward-looking XX-Q. Form in filed cause our statements, from SEC in our described risk differ described such our that results risks materially can and risks

our You to We law. disclaim as of update except should any any not predictions on as forward-looking by required obligation rely statements future events. forward-looking statements

found for IR results discuss our which also reported issued will on be GAAP financial metrics in well release measures. non-GAAP non-GAAP our website. as copies we supplemental certain call, this During our of be our as found press can between and slides, can in Reconciliations

to afterwards. website turn call the that, be call is this being Finally, I'll will and it With Dave. archived our on shortly webcast, over

community. and Stefanie, investors, Thank you, Roblox Roblox welcome

GAAP compares XX% And Without October relates life day have at October, Some would as we QX retain up And you the were do the in to quick that on the side, and increase, the numbers we've would of of where bookings last possible, been revenue shared $XXX currency-adjusted our up really customer basis. first $XXX bookings XX%. That mentioned we of very letter, in user larger. we've Roblox and and as wonderful the XX% XX We basis million months. XX an into million, XX a XX $XXX to up want to year, that letter, very, bases. we adjusted QX, in number ultimately days before showed $XXX highlighted QX, over million from that a be And to revenue we principles, basis, X% we GAAP our to Q&A. defer the follow our we we up year-on-year. on is want payers. player Also, revenue million retention that can on bullets our a thing that highlight our lifetime to good increased large base. as our more accounting accounting community your October on had a dive we in so I

a relative numbers million, So seeing year-on-year XX% But we to note, first start the core have continue year. and is in lap to I with users you're us rate. want retention. actually, increase opportunistic XX still to $XX.X our highlighting growth to last year-over-year. QX, to bookings lifetime regions try And COVID. were which days the a our $XX.X On DAU XX% watch October, to million, at that from those increase were strategic up DAUs basis compares difficult in

community, for with number A our up XXX,XXX want hours, million of investor experiences with couple with to hours, I up XX% again, XX%. developer of developers once community, and X gathering highlight. Our really number experiences things a and developers over large of Roblox over

want As gender, a for cohorts. on at product we that look separate and We we that bit. directly as numbers comment we and That's you groups business, headroom these in age for of at seven those a both look going also frequency, company five responsible to look a lot I'm the to for our or going of as of ranges. XX and I the the we to run and engagement also have comment product world have as few highlight run cohorts, many we internally groups the well. I'm business at region retention and monetization. around

at region that segment aging DAUs showing building all all XX% highlight about playing, including core of ages amount world, headroom our grew a our I'll up In just of us also Around growth has through again, XX as is and room our the both XX Before age up our of our our for to why, we be fastest-growing there. September Europe, saturated in at working and and of DAUs the have a highlight been XX lot up, few and or of XX cohort and now saw of Canada XX we ratio all some a look that XX% In of around and us platform We that and with even our the sharing Talking ask are cohort during and what in brings DAUs peak cohort is been used our on up some of signal share optimistically highlighting our showing There is our and together of market -- frequency that across our you and based 'XX wide which XX% optimism investors uses, for we through public, highlight And a levels that 'XX of drivers XX% I well. are vision around well DAUs is people as once historically and above cohorts of the want year-on-year. XXXX, region. we as went to most is I as to learning XX of businesses of growing these MAUs. year-on-year. over we've range want utility year-on-year. higher, also the frequency all a our in started DAU wide early to ultimate to Roblox' frequently. that our relative world is XX% COVID. to And to in our we're is frequency, very together. business in U.S. for APAC, evolution a the ranges share XX% at XX% on those is our of accounts our

share, XX% September higher engagement, now but our Yellow hours premiered then a in below XXXX, peak DAUs nearly than are which started want We're with COVID to great with The on has X. Brick to and just our slightly Elton which are brand that highlighting I finally, pre-COVID John other experiences November the same participating thing And to Presents: John in engagement Road relative a times, Beyond the direction. Elton expand. called extent grow last world the new to persistent Thursday levels,

think the ubiquitous in extent which Roblox have it's industry. just and I to the brand brands showing music become really

to detail we will if during ask immersive wants will not, early that. any With we and that, product all Mike keep to around just We Finally, one want Q&A. we product, and our out we small iterating that are I participating. on versions casting thank other rolling for Roblox straight shared now Day. started Investor highlight Mike. we'll is welcome, have I of And lot ad you if with some comments. brands. If go so, on he progression add and our Guthrie, publishers And a to

Thanks, Yes. Dave.

in up, I the key think really, and The it. that strategic our some I aging we core financial think markets about covered you secular markets talked points. are trends of

turn it Q&A. So don't to why we over

your of with David question ahead. go line the is [Operator from Karnovsky JPMorgan. first Instructions]. Please And

some Thank bringing Mike. you. noted, of you you that I Are are then Dave, of of could just demo new for back? are the are growth. not, to this these speak the these fastest-growing one users? coming the last is experiences that drivers was hoping types what as players XX If And XX. to

seasonality year-end. hoping the in your us could Just remind you typical of

seen helping you've that. strong I I two but might some pretty have ups been prior step the with in feel COVID there were that think some bookings years, factors

sense looked period a Just over of long a of has want how this get time? to

to stack is whole to improvement XX-year-old continuous XX the a has And the to years. I over highlight been this. our growth four contributing Yes. last want three to

more continue in signs and start, are We older see gains warm experiences more search joins them. start make to exceptional and both and that an to discovery, tailored which they up Roblox, and when cold player means

make game our and engine performance. far in as We to continue as our engine game raw improvements cloud

identify players the with. to in We avatar our have clothing for that they avatars made can more stack improvements ability and have more older and with amazing layered

We We is respond Investor and for start and are having we players. and introduced some experienced Day, more over are our will interesting seeing at applicable more up developers type and that XX that experiences. XX up time and shared that with which guidelines and older ultimately experiences with you content

turn the throughout growth. working to many, on this. product stack, really seven seasonality. over the And factors throughout I'll the pervasive on to is We this this contributed it that Mike drive are many So groups. it's all have

Yes. Great. Hey question. the David, thanks for

a pickup September, around with We we a seasonal occur summer. right off popular. August. saw then strong a the special summer, now, Peaks in September Halloween. of down beginning we're lot of around period We in content right from that is really coming of this similar October down seasonality the August. when and to pretty So in a year, October, and were was July of quite September that had October content

Going is fourth month from November into quarter, then, October. December the the quarter. typically of rest a the And in of big up the bit is course,

like companies for into step pretty then the November, of lot and up usually around a a the around like big Thanksgiving, holiday see season. holidays, we're we So example,

And by So seems shot. us. December the totally normal seasonality so biggest month a long always to -- is far, we

the what we're base. payer about excited in probably growth is think most I this

That's And for so us. good saw $XX.X the third quarter, really you at it pairs million. a peak all-time number signal in

said, Thank to what picked circle Mike. you, other may up back one thing and you And aged have I growth. the up I'll it in just

hear experiences that own and there, creating brands always how growth. the the But I intermediate out these is virality. and You agencies producers team, quality to to to contributing raw all brand we music wonderful of product, with want our and also some lead pay notice do

So Wimbleton, visits. XX.X WimbleWorld, million

has Our Tommy million Play over XX experience Chipotle visits. our had experience,

millions FIFA World Our started, just visits. of

X once concert, again or XX visits. Chainsmokers million Our

driven also So being lot by of the on. of focus virality raw a partnerships we our that traffic there's and music brand potential top product on

question America. Omar Dessouky of is from next Your Please line Bank go ahead. with the of

it why I items about how platform among to fundamentally to users? enough behavior market appreciate after I the And XXXX. Wanted should guys. Can And you limited -- your I ask to expect which explain metrics don't the something transformational have doesn't be Hey a will about the pronounced? that also follow-up see think will of change do you that. inflection? the which see And biggest cohorts KPIs among inflect of your XX in those most

XX our an ultimately, avatar and All are final with user we the items, completing UGC that amazingly comment the the Roblox, are started the that. and Yes. that, all building cohorts. one Mike, be that avatars, And we vision community really of items, we process of all on based on early step of the I'll clothing, our more provider of early to in is want that. both items Those in XX cohorts of a will do example, on Mike to What choose, can if doing a Very blue low both as well, volume such white than they limited be have so real can And number. creator they means example of marketplace. brand a an of use a profile. we the They items high be this just volume I in an where check T-shirts next can always validated. item. something rather their And have like items, make unlimited Gucci, I'll the as, indexed. can world, mark call is Roblox high

value, our made, done a has to an The we've trade $XX,XXX for believe these. limited some trade economy top in have really for is real have we the fun, we engagement example, items. platform. see in moving similar We be limited to really ultimately want items with will scarce expand as the index that crown make things And creators items we're see with that and economy. we at that believe we Just going fashion, brands this our will of which will to good world our similar Domino's we Roblox on where that,

per want So kick it as The it like and or raises high hour more as on is we because real to I'll hour, driving it have affect cohorts. and to affects well. items platform hours metric comment those whether does affects look the bookings priced this when monetization. per you bookings the over whole monetization. very world, we Mike we're to any And

Yes. Yes.

see reflected better a it core something talk is also that well. also for going to experience frequency users. it's don't So also I to also users -- that up because affect I because agree it's will we that Omar, an it's to you're be answer cohorts. older content it's all going mostly user. I about, will as monetization to open engagement I is metric, believe, in going to thanks though There for a Dave as expect appealing is I the and move be think marketplace, genders question. enough with the be younger the all

not to is cohort as female and the users users but cohorts, be age content male will appealing just well. So

think really I that's exciting. also So

way real artwork Yes. One Ferraris, cohorts, that cohort the high-priced buys as think well. on world, about in think I be those this to affected Roblox and jewelry, who it. effect One rare will

right. All Awesome.

Looking forward that. to

So and revenue incremental fund. dynamic may some opportunities I namely second game heads ask question the wanted then about when to is hit,

hits your then I those next you so, the now. start And store would track When you said November avatar go number store When still any have year? think earnest, examples think dynamic heads So this It's will year? your they model launch, if And avatar them throughout game year. to to be year. monetization I top on fund there? be this the you come soft what's the of of into will two? in kind XX that blog expect side, one? fund in to June, launch in number in kind And game those the do the of on showed Are in like later

couple things. a Yes, I on can of comment

Roblox the just with would animate Day, the as think at our demo think ask monetization conversation. showed text faces we we're chat where Roblox a -- when for all but world as people with I static expression, far of investors, do more more so we not to product, from moving are like in the our dynamic just Investor and I consider we're ultimately, you where of immersive I as primarily well. heads, communicating show camera. using And we And heads as voice future a our by about

the on dynamic have we avatar. of their is of will rolling ultimately slowly next in this on fund. animate blog and creations and where continuously Roblox the at that but out game the our everyone heads is a head those everyone are roll future blog interested funding day There called the vision we end progress that the year. in out over we given post September is on some catalog. dynamic. The We've every So is shows published for that a Roblox the And point ultimately specific get not can this, to

comment see Many at the in of see which But think I if experiences, pattern of of fund these getting be of older the when. have players. many general will hopper. avatars. to we and I and older are don't And you'll transformational. want soon, you ready on the them launch more primarily to they're these aimed some involve game

seasoned have developers don't So building rip I for to will you that all. players. I if I experiences And Mike, older comment at at that but professional fairly on all we won't want some comment on them, very know

No, think it's to perfect. add. nothing I I got

you. Thank Great.

Omar. Thanks

line the Stifel. Your go with Please next question from Drew of Crum comes ahead.

So morning. thanks. Good

intend at -- update and And XXXX. across viewing year? deploy an least letter, below Dave, you to from relative next Any advertising are that And margin EBIT change shareholder how guys. touched Is the you the figure the guess, share? any you sorry, driving year? noted to the on this platform? what's to intend that the metric Thanks observations any immersive that on through And for how margin can I you beyond efforts. in target early when Mike, then, briefly XX% there to EBITDA updates earlier you you So in

want and know, a Roblox. long-term. couple lead Yes. there Hey Mike, and now, lot of right companies the I doing I unique to want things are first earnings EBITDA I layoffs a highlight And on to of quickly about

continue through to going are We hiring XXXX.

exceptional ability a continue And and cash is position the We bank are comp do that to going this talent drive the this think $X the to in I constantly with keeps we really a have innovating base forward-looking and improving. highlighting billion our cash adding an we're way company. And range. good in do of that this to in good stock-based in and to really

in So mode. are innovation we

in a in way, very thoughtful, balanced are the growth forward, thoughtful We looking modeling hiring mode. run years We and company advance. several forward in

gently moving tiller bit and So that. earnings more type of thoughtfully And a this Mike the innovation. hopefully, comment of towards we're driving as little let I'll result on the a

around great, and not trust really big being and little then improvements Yes. Payment four areas that bit in been has that's developer investment that's changed. of changing been over processing Dave a there's safety, our innovative. And areas more coming but bookings cost even one processing in investment a there, Hey three infrastructure bit time. really, hasn't big massive what's which or our as of getting are comfortable And percentage business. moves, is highlighted the efficient personnel a our investment generally it is that and has down Drew, and there again, because we've Payment little revolve community. or

nothing are in All terms the really, make desire our waiting, the has areas. there's emphasis, changed those in of -- those of investments to

it. do to ability the have We

adding into sustainable We've in lot grown all really ways. like liquidity. a value long-term the we're business. We them of have We feel

sort of really 'XX out of these coming an in one we leverage the maybe cost to investment the And ability see near-term. so this with real of areas. this across optimizing in all into 'XX, of And opportunity almost as structure after see

So still ramped changed. very much not other or nothing up base We're things are any improvements organically has line and we in User product. great that. like done is -- haven't driven and that in investment what marketing by product top

So innovate and business opportunity most we the with that continue sustainability can. possibly and to taking build we to defensibility the really are an best

on Riffing and immersive on opportunity. Riffing advertising Mike. thanks, -- the

and can it our target call well the That of you all first One things all the Roblox and specific part partners without at get is developers treat is products that and equivalent. of use ship we've next of everyone for platform now. of year in self-serve the we our that are rolled done always is this everyone can or next date. That UGC build built, said, as for hopefully, right that a testing out year, to as

are our we now our of with So immersive brands advertising testing and some developers. right technology with some

now. testing So

everyone. for self-serve year, Next

question next with the from Morgan go of is ahead. line Your Cost Stanley. Matthew Please

questions. taking Thanks have Hi, everybody. for the two. I

separately of you. just acceleration DAU features frequency, Q&A, of two you're you reacceleration that saw were months? I'm ratio? a any some running given in of specific talking terms earlier during I growth. platform And ratio the terms in kind said on So you've there at how Thank looking in going types of kind experiences just forward or behaviors you much do and about pretty saw And of makes the or platform bookings kind new sense. to October, behind above, in headroom you making, Dave, September which in of then that wondering, on going that levels Were of think there were the meaningful that of there's at or been see that past COVID, of the boosting a lot you MAU just user and improvements you at year-on-year needle-moving that

from product is the and Roblox, a Yes, work stack. on a architecture wide really way we this technology

points, graph, and engineers console. user the experience, our on We our amazing product mobile, access have working on on social

that actually XD supports needle in of working to search people as gains people that have just by kudos optimistic our team, Roblox fun being the economy And that the engine but big in driven place. and going many, welcoming, growth course, raw growth quickly monetization, the things how these stuff the our actually on raw Roblox, these very has some awesome parallel not and tools, or core historically, don't simulation well. to people by core the gains wide-ranging people as of and safety the the of as make been And on our platform, infrastructure cloud the which but experiences, can possible. most performance that and team, I'll We much needle movers all team movers, -- discovery, powers join notice, drives engine that on this. safe and a There's game single stability not time engine, so don't developed many most things to game highlight, are growth the quickly simulation notice but drive the including creator

video what with is a more I they way goes a can't more think product. are improved connect and phone utility there the really used am saw On the discovery, wide to of nine-through personally hang to utility out as things be all XX of around I and Roblox through a and that during market share is I play that beyond COVID, headroom as there together. side-by-side X headroom a done in are, I we've specifically even to use migrating think Roblox see frequency the text platform people as our of bullish, improved across but and frequency, So And people used search numbers. so there in U.S.A. XX-year-old because we we'll DAU. core a this have lot really range that People USA together. areas and higher

Mike. to And Dave of things what couple a just to just said. want Matthew, add Yes. I it's

Page materials, in to you the point which supplemental bookings payer XX the community. just regards is As maybe and to acceleration,

or QX higher look 'XX, you and than is almost sequential 'XX as seen. I we've at growth QX If that high ever in think payers

payers and ratio or call, the we of a part second the that number can you in payers of numbers in you the was earlier so expect there a of talked third had in the would that and payer big we September and Similarly, see good obviously, pretty quarter So October. in is about pickup that.

conversion that of we the letter. Canada. it right really is point in U.S., -- positive rate a letter core talked a shift now. for There's very our going good So bunch that. reasons One as about in whole in is is And the Dave on, a mix earlier there suggested, markets, very

levels cohorts, are driven to We we back and in all peak quickly. age are aging up very

as percentage the the markets. of a the number a tougher It's payers, have do of right now. so And Canada. and U.S. rate increasing bit. COVID a it's increasing Opportunistic down little also a strategic slowed bit in of compare in little as They has

mix well. of question there's as and seeing is retention have that frequency, impact then highest payers we to moving up your moving are our the payers. until get conversion more are look at metrics, way flows rate? and was And starts monetization. So you level for why areas all engagement the towards our that, One you the those other shift numbers, and that And where users all core our with at through

into a and sequential third question payers up the was -- that bunch There that as we just would to seeing But at movements conversion high with healthy all -- cohorts, growth rest speaks fourth held age good are of been and very the more across all go an number year the rates. me, And of to the really in at monetization. board that again, quarter. To a and as rate earlier really engagement, seasonal goes payers around so core I more COVID metrics the has quarter. seasonality. really to the we're of look frequency rest improvement very goes in demos has start in That in output that we on whole focused post of really

And why acceleration. so think you're I that's that seeing

you. Great, thank

question with line from the go is of next Please Clark ahead. Your BTIG. Lampen

and Thanks questions. the have community developer Hi, the two good morning. I on advertising. for

up from the we'd like some from us said, time. good customers that seems is of on but other more Roblox advertising. dynamics intra-quarter XX-year-old growth or those of spend There's from drive basically measurement. right and more our with sort about gating feedback the timeline the now second that on like bringing on part talked marketers of to you the building First, such performance could Are of also is us right helping before. I'm If stage that and one monetization We And vector demand factors is you did users sort aging that, developers payer that Thank the on conversion? developer that? Mike, Understanding curious like over give is they're is framework And something inflection that prevalent now. for that is it and of more question color to you. on in pick possible roadmap recent for really business? secular then you up early of content a creating ads so, monetization you're introducing some side the as what ourselves, XX-

I'll off to one with want start you and do Dave, then? take question, the the first ad

many as I'm it's hard type going in measure immersive views, able creation There be a will if XD in how we of immersive action-based a world, are people people platform, those XD measure both the well It's here. amount And both And of many are world, to really, of as saw for is on bus providing advertising of went set of But time. excited a measure the potential brand XD real about billboard we we measurement by. really measurement two of be on this as ad new to types will brands an actually be that driving of things. to how immersive for advertising. almost types that. can the saw it where really types when units of those the dwell

we that experiences our world comment have on heard store. in hear an going same been is thing migrating that would on anecdotally measure Roblox' real we're promise. experience, into about the thing experience then to about back who savvy way we out then the bring the the teleport-type you measurable to we as units do brand, real our brand for to to experience And the time even that of do pop and potential will be of will that. and out Vans as experiences like want ads that brands type well. there's acquire experience where to measure and their the to more the platforms time can't where highlighted again course, So be a ultimate to and to longer-term be visiting action how in world. we possibly experience. More a in to these, ultimately, ultimately XD things the come from and We've connection today There might long-term even not the there's items around or out fans is to Roblox And back But once wanting visiting the players go of that to the -- physical short where anecdotally amount to lot the were. to in and believe there measuring people to a experience digital figure ultimate of we think people the starting a fully with

of cannot And will of kick I for that this it early. Mike measurable. engagement other with be done to piece with yes, for types potential be video, done it. the I'll just think that So It's back cannot there's be print.

is developers one. on interesting question your really a Clark,

experiences. are they top experiences with in seeing users I are not wherein or the monetizing we may that would Roblox on very dynamic aged-up be may well what call So older a

most content. bit we user that experiences on aged-up quite that are see other And users They're now the popular in those, in experimenting experiences. more However, a they're older but more. also the experiences more right Roblox much are base aged-up much same spending not

on that smaller that the Now a it's that and it's they high aged-up for to users content. really early, us but affinity a base, -- indicates have older

belief course, aged-up aged-up that of most also coming is is, developer of community. Our an that from content

that's have to we're level to and don't pretty So break I more and on similar -- numbers know they're seeing precision question, suspect specifically same your aged-up more I through. rates, answer but I of the content starting growth don't with

those with try and definitely finding to on But we'll some And there. see pull go spent. our to we metrics that. way together older we long are behavior that a there's that think They time can I DAUs share no engaged, time. And cool very and get up there's aged-up from and developer base. older are bumped doubt in experiences going very those coming they're monetize again, well those experiences, an are almost to over they and

and of -- long-tail best discovery, don't hobbyist. -- long-term we the Roblox, Yes, starting I young as a I don't out developer combines think

developers ultimately people end, very tens dollars the game mirror or the year, developers quickly. beyond experienced go developers, our top quickly millions platform, of and I On larger high on any are as and seeing studios top of that XXX very though, earning a think mature we're

Thank you.

with the Please Goldman of next Your is Sachs. Eric question ahead. Sheridan go from line

the the away see more taking for much just cohorts, sense you the partnership so sort over SKU if as partnerships even into much. forms And higher cohorts, informs different product via how aged-up aged-up what by bringing on content to in of that behavior long-term? curious well? elements or then engagement I'm of over geography the time consumed do Sticking you or any Thanks drive the the how development that infrastructure in from of geographic questions. the to cohorts? theme And with to up continue original so you you of aged-up invest Thanks do, of licensing side want platform and content can about be think among

with and as feel amazing pools search infrastructure we if an doing are high-performance utility, and I immersive as creator right, building our Yes. discovery XD base. we're job amazing the

with very more community respond technically. just print it's whether we're or the of developer than can world we forms we're whatever, video, of So providing that respond platform our other regions a high-performance media immersive, immersive to in all to as which of but

So very we focus India. latency much on in what's

mix We we India. world have high a a and is see would Korea can India then when new have growth of discovery center drive Are regions performance? provide awesome data Japan what around the expect. we we world, we doing the to edge data search Do in around in or there? centers South go or what help various to And to we

experience as expect Some our in various also facility in classic experiences dynamic countries. translation many top we regional just Roblox many, using countries would but

our standpoint, a our is is in is partnership growth From content is what philosophically self-serve. now, awesome right driving developers. which Japan I to think now, coupled driving in our our with from goal which make growth India our this infrastructure, is great this really

seeing spontaneous with to involved And if is to where get make to ecosystem. on been you with, Our we're exactly is anything goal then Mike? is the to add can ultimately developers the couple want And to which have it on the which partner brands. partnerships, platform so more we partnerships more and that Mike, kicking would not want we

but I partnerships it the up. aged just sure make question on to I want on Not your got right.

-- geography, users you're by Meaning to in Germany. with aged-up different behave saying differently do year-old user aged Is across we geos? notice asking? does XX user behavior the what XX and than that U.S. an in the You're any

of does about how long-term? platform That's the so, inform you part one. any think or development And if product development that elements over

so aged-up is Yes, in as at engaging each around than that's now younger pretty some by not younger They're in of and if users cases, now geography, users. users, higher, at rates, geo, basically consistent basically, the monetizing seeing rates meaning higher world we are I -- similar even look it. at would the what at we're same

younger above in kinds an if of user else And it So rate as dynamics we're the within geo. U.S., they say same with -- somewhere the same world the in to were user. user about the seeing I monetization aged-up is is an the of the each aged-up

pretty frequency, of same monetization. pretty similar. amount But the pretty it's much a and engagement the So demo, much higher same within is user aged-up now

Germany and would that philosophical split platform. a could saw rather to that maybe way that thinking in this, behaviors of platform and a supported developers take We the people of so look the infrastructure us respond than build differences with we to different relative the about to having aged-up those, U.S. at Yes, our both

build regions. we're all that utility So works trying in worldwide always a to

Okay.

going and more of we're time the question, for then one have obviously, We Operator? to be rest available day. the for

ahead. Thank will one come from Truist the from of the of final -- line Thornton go Matthew will you. come Please Today's moment, line Securities. with question Mark

morning, two, morning, good if good could. Maybe Mike. David Hi, and I

thinking a I'm the a to just investments you what footprint. you're more what terms I'm again expenses, I have seeing macros four perspective. little of framework of we should mean, look at we XXXX? more dollar about what XXXX, the done and growth guys and just in think you're on expense sequential any then lines of kind about Mike, as past kind go OpEx-centric back that First, type from quarters now, if in of if should expense curious, that what And have extrapolate terms kind over year. curious and the kind anything, of just kind seeing, kind forward? variable right we question, global we curious you're and type look seeing, changing of gotten certain guys. anything? next at as at on a hold that through of lines through a base of there demos. kind challenging, we of second specifically kind certain the I'm assume perhaps reasonable of again, And where two more regions look Is when behavior in Thanks you macro and similarly, of are

people just materials. the I Thanks, to mean, let point of me again, supplemental Matt. On costs, sort

little business. and channel efficient a of that efficiency. prepaid really it a down. out there. see And definitely to card as helped generally us to Looking think of Prepaid at bookings have for Cost been demand our as flat It's number a of down. Pages incredibly way done percentage those X more we cards it. big a lot the bookings take model are We payment a hope items. percent good flat There's is of growing cost it's revenue or are through well, to for us. has a XX, I And processing fees

us So Developer that few leverage now. lower fees the next over for that XX% this exchange We're been have in of quarters 'XX. right XX%, could bookings. running help cost looking in not area

has a stay went would with And comp this up it. percentage a So would estimate that. Personnel up will suspect number as costs, or point to exclusive been probably have investing. as few range stock two, be quarters, and in flat of way I going of last the okay this been we bookings, we 'XX. a good is throughout hiring But they they if

think it most around year. XQ, the numbers at will I for XQ of the hold

people see as last doing in and healthy and in that will the While rate And I this of infra, possible. but will the look QX wouldn't going trust also adding at make of company. Dave pushing three has be leverage most the sure next to safety, for in way here -- number we we're probably to investment But we're same number but percentage few of bookings, we continue you a of of efficient mentioned, hiring to closer There a into over making think We're be are things too a we're hire, really all made the quite in with I still what eventually. QX. to significant we're teams year, 'XX. it quarters. investments, in much our not as terms quite

-- been in have shape. in So out the the quarters it pretty where I of model probably think you're last last if couple you good

We fact the the currencies are changes Dave, a than really around relates growing hours I'll we're continue -- the world, macro, it obviously, look the move we the the to dollar. around comments. look other currency start to As healthy are Users against of When other growing any world, seeing and underneath around behavior. world. lot that, engagement the

Our retention looks good.

look around Our currencies. quite good. conversion rates good when world those very the for Pure monetization looks adjusted

overall, the add to David, know, of the is into is healthy. anything Where do it bit say, fairly user us significant. would anything currencies we don't I have environment a seen that? I we've seems back little all dollars. translation I base But know wouldn't challenging. of pronounced to the is you behavior most macro say So for

savings to gets there. and amazing active-active cost there. ultimately and We're you five you'll re-watch now going see lightning quickly. infra a you'll how wonderful moving We're And right to One, bullets. see amazing build. there'll four Day, I'm be to to leverage to two four, as really X:X doing if three that presentation our wrap our is add Investor on to infra going a

dollars I think long-term, people U.S. wonderful now. of all also, we engineers product and right our pay in

So collect we the sure platform I'm platform. around trends as on positive to you'll just the the us make macro Roblox very world tightening see that up exchange around about rates from absolutely long-term see well But move when a we the in our we're feeling world.

Yes, infrastructure we'll Lion's The just shift. little spend although on it million share $XXX on million $XXX the over another next bit that less incremental little of bit we'll of a done this be little around brought infrastructure year, of a real year, the A a investment be will spending a this be big little estate. PP&E spend there'll and year. since on is infra of up, will Dave bit

we So in we growing, new modeled are estate. have still so into and investments real some we're moving offices some in

this year. year-over-year overall, will we will but taken flat around that's have actually of be amount -- basically as So infrastructure be year the of down that PP&E most next

Thanks color. and David. great Mike, That's

comments. wrap to Okay. any Operator, up, closing we I ready think are Dave,

to thank just No, community. again, once the Roblox you

All of our wonderful we you working investors, appreciate support. and with your love

and call. And you again, may today's for does conclude conference Once thanks disconnect. now everyone. your you, That participation, thank