Roblox (RBLX) 10 May 232023 Q1 Earnings call transcript

Good morning. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Roblox First Quarter 2023 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. you. Thank instructions] [Operator

may conference. you begin Notaney, your Stefanie

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

a opening on On reminder, and brief our make and Web at shareholder ir.roblox.com. Investor call, rest time supplemental our call we of some today's a for press release, Relations of As filings, reserve the your can this will SEC remarks letter, slides, replay be found the site questions.

today forward-looking financial financial may results Our but commentary future expectations and business, include strategy. not our limited to and business, including our of statements,

differ materially those our are such are annual statements, SEC in subject risks and from and risks Form forward-looking our including statements our in report included that in to on factors, to XX-K our could filings, risk described uncertainties described Forward-looking results and cause actual XX-Q.

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

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

participants, your webcast note screen our your please at of icon For where that submit the bottom question questions. you can

Dave. to it that, over turn With I'll

good Hey, and morning, everyone. you. Thank

then, and we've start this also a to which business. and infrastructure, cash, base future done We about since sales, a which are on want our a innovation talk exciting And acceleration talk really for of to We're expense, about what bit cost going to relative and to touch rate with year. generation wonderful is And start story. bookings we'll growth is I the of going finally, the our of prelude. bookings compensation

Our to million. QX revenue grew XX%, $XXX in

based million. the And on to We run to XX% just business run we I the business. bookings is Our how bookings want cash. grew $XXX highlight

Our gone XX%, the to last five growing all by is XX%. bookings have platform. to have over plus plus directions, driven growth engineering touch platform to to on this quarters of awesome X%, plus negative that. is our being our X%, And in expanded quarters believe eight from XX%, rate innovation and and I'll year-on-year that negative We

GAAP was revenue positive of operations while million generated our million. is free $XXX cash factors. difference million, and cash loss which cash in the operational and and $XXX and other cash quarter, was from GAAP over the just loss, deferred by $XXX highlights between driven this We

has and the $X financing. steady with cash over external six cash been our last quarters, relatively Finally, approximately billion we no have of

side, up the with DAUs of XX an DAUs. On XX%, are million user high all-time our

year-on-year, up are QX. engagement and us. highlight XX% which once market want Our available an bodes year-on-year, very regions XX% large our to that hours high I XX.X All again of for billion in growth of for as an amazingly segment our hours future are that's all-time XX-and-up up, growing well is

in QX. On developer to record year-on-year million XX% a our developer increased the to flowing $XXX money community community,

exciting our in have some We things happening business.

I in last (ph). of will positive growth exceeding a million the over year-on-year out our growth. to QX. cash on This exceed almost Our we our infrastructure built growth this cash year-on-year of have sales our is we year-on-year efficiency is QX And year, way cost the of the our already in and believe, want bookings we're our spent datacenter that year-on-year. on bookings infrastructure we growth to and $XXX highlight flow redundant still spend in year, [Ash] showing infrastructure testament

growth our through compensation excellence. bookings growth expense year-on-year our year-on-year pass XXXX, of QX in believe, operational we just Finally, will

We not have suffered layoffs.

efficiently. being highlight we're growing the headcount best our in to hiring and very thoughtful continue that We

cash awesome cash the we again, On side, we're to on an once the highlighted continue innovation side, position. in innovate. And I

vision Our about and bullish vision. with day we're together and civility, every bring a very people this optimism billion is to

positively continue since innovation innovation. really We this highlight this In want very January quarters, on we've feel a I on, driven we've to opportunity. to X executed eight about the the of year. lot of last

And of control, And of is international and that a revenue creation, communication. acceleration. our vision ageing acceleration, once innovation believe AI-generative bookings falls up, to XX-year categories in innovation contributing history our got social again of innovation. cost We've we

point quite drive the which automating and the for we've of the really our been And the highly AI of we're reviews On our to machine XD we've cost to is efficiency and safety business. got efficiency, using primary some audio, images. organization, where learning time of focus objects,

test. the want system advertising side, is highlight I revenue in now our to On that

over XXX have number. going We're to the participating. developers share not that We are

users their a will really system of We're excited complements is Roblox. advertising very our We And into about advertising ad revenue that new It QX this. and convert that year. have format this and the that, image video amount in is NFL small of make what reach and new a of quote helped to the native experience." I'll NFL shared high is with percentage immersive a "Portals

two launched our help quickly. to more and creators AI-generative accelerators create We've better create

purely just really year. Roblox Lua auto-complete, Roblox. script proud of launching and we're has early people this a would that First words. on using that's amazing If with an We're brick create moss," Roblox but is we on covered code like help creator that's bit won't enough a generate material. create did this repository little "I to code also any a a helps by wall says, train And developers that type using material a we're a XD generator of to that to generation. a code. material allows And this XD few generator

the world. side, the we live vision that that It's many, also translation. been on is driven by quality which in active. creation many and Roblox countries. international drive over daily highlight vision that Japan, on I can made our will XXX% On we've want drive to now some And to anyone's of at continue the growing platform the advances work semantic around search is a year-on-year the go

engine. and of social strides our the as efficiency Core behind vision scenes, made communication well. of the our continue, quality, We XD And on the to we've performance, enormous drive

start XX% on voice lip the in over-XX daily being either U.S.A., using to to as than were year, on they well lip-sync by of ago. highlight. Roblox the work our other on seven we've day sync we've the camera. to seven, and XX% users platform finding based the now in be thing is the of real-life friends year A days contacts all or out just on X% on used ultimately a are almost journey first By avatars Since friend-finding, more the people And rolled platform, the on fully animating don't exact. fun

drive of share then as we infrastructure by will possible, recap, growth that growing basis again than start is QX billion efficiency. we we an with to next And again, really we'll expense Long-term users Just with Behind cost and then excellence cash focusing a have want once on spin-off, answering of we day innovation. focus year-on-year the compensation on year, a expense. connected to that as every driving innovation. We're sales, mission headcount bookings And finally, much believe, civility. to questions. bookings creator be and or bookings community and with want the once enormous optimism operational growth, quickly more on

for up open we'll that, Thank questions. you. With

Andrew line from Stifel. first [Operator Instructions] is Your the with question of Crum

is line Your open.

Okay, guys. spending, investment of A discussion thanks. Developer anything did around I Good or lot hear I'm morning, around slowing not fees. assuming Exchange

you quarters that does a or the bookings, Editor Fortnite continue to is economics And I Dave, XX% to a percentage as guess, good response its the think terms over is the of community? rate line, XQ about is run of Mike, move curious competitive So, if company next as pays business a for several Epic's up? to developer in the the quarterly Thanks. this Unreal that for there out

with I'll talk earned Yes, million. XX% XXXX, about long-term to over and in on on on There's and developers, Exchange Developer platform, to $XXX our an XX% economic year-on-year grow comment to moving platform. increased enormous Roblox see our And the something let who lot to let developers community I'll the exchange. Mike we are our flocking to rate. In a March I'll four million. Roblox, right Developers that to year-on-year Mike money number continuing of then QX now. grew the opportunity of go,

pleased we continued last few rate, that the growth to in have we're on of over the Exchange increase rate years. Yes, the Developer

drive community We economics increasing to time. bottom that continue developer We've to the gives community, the the with us as approach in garner we our in business, efficiencies to that the the company. very it to to not investment our look but do in little for efficiencies and steady continue increased line line, increasing the to And also for of rest company, bit we'll flexibility drive over been balance bottom the only really in our increase of number. a of in

continue we'll that to So, take approach.

guys. thanks, Okay,

Thanks.

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

open. is line Your

Thanks taking creative asked. on double-click was that bit Fortnite that Hi. little and a my wanted to morning. for good question, I just maybe question

see are community have in source some on can very seized of you As the different. the it investment though platforms even competition, as a

given second beneficial you, symbiotic to the after Roblox And wanted would emergence its over be a the early metaverse, have follow-up developers? development time, how or I the So, actually of stages that. to ask and of ecosystem, I a of

share a Roblox, how great last, bit XX Omar, at And innovation how years. Hey, to we really, about have and I want of we for the question. think

in vision the a (ph) take our new just pull and product an done metaverse. that billion innovation we from us, it of We're this invention to the note, that's a before our that place of technologies those daily vision. There one and And are to focus we still creating drive more lot our it's it's and believe going is shared that UGC innovations part coming on. of more actives. vision you to We As things inventing acceleration. many correctly is And we are get very around what a teams a ad vision creation, shared long-port active. communication, social the we of We XX over in that do of bullish billion the AI-driven been We platform. [driven] creation never engineering shared which can around very that have creation help think see this where about ago, metaverse. around launched years to lot have and more Roblox as daily the we early

Okay, all right.

I its noticed a that, capital maybe recently million venture A Roblox raised round. $XX studio Series to that got So, that follow-up a on a start

channel and or capable think Roblox does social platform of monetizing about So, in incentivizing become IPs studios services as to the larger own, on another standing your ecosystem how than and them their successful keep platform? most are creator through their rather on some

highlight to want future-looking and really I a to that today those That's exists already massing, something now, and are right that thing. grow. that's not incentives continue

operational is pushes an efficient excellence, possible, create on of activity, on of continued bookings continued those lean creators back as to the as see, larger. creators tens expense, experiences headcount shared And cost What money our size and which dollars. both is getting top could is utility millions as of as that you raise Our runs much Roblox means generate earlier, our I of on they're as infra. to so money, those possible. What that sales, starting growth, economic creators that

to and So, an about operational already moving and there. And developer we enormously think it's incentives activity platform much all we as excellence, those community. large are economic that think

Great, thank very much. you

question next from Thornton Securities. the line Truist Your of with Matthew comes

Your open. is line

or color couple any May, would at margin Dave. it we just that's guys. that the Hey, just trends on ones has Mike, maybe talked there normal how quick then two good Is what quarter like be we looks and you're think was high about guess about EBITDA seeing could. the evolved if guys thinking good way Maybe really any So, guys first, seasonally helpful. had And obviously, about you a we've in Mike. I for into for -- you morning, be again, April secondly, last that And two I years? weird color because, a second morning, should ago, I should Thanks XXXX still all? year. maybe single-digit-type think, quarter, quarters of

excited for good, we're I and Hey, We seasonality, out reflects glad reopening in. are our done And we doing all that last data years it, pretty that we're thanks There's there COVID, from metrics two glad of and presentation and COVID. it. March. did Matthew, checking think did in and monthly that healthy

June really for summer, of April So, it's strong summer strong is for it of the is platform, with was holidays, as out benefits I a there. and the always think companies. of and are the there's Easter big the of data time is start plenty and out of is because The lots QX, course, school

bookings ton the the In a history returned coming today to really about margins, really terms substantial about have of it's it's on talked it efficiency, to in infrastructure. And growth a exceeds company's investments we investments in call. a point incredible people about as where it up a and to result Again, that in our we able people of to now making being creep growth where and to allow level infrastructure.

next really, excited we that's few with So, operating the really feel quarters growth important And what's and us. really combine years. leverage to over

and next operating that to business leverage. over So, I high really few a expect just the would see high say years growth is

strongly allowed in to on the beginning infra to investments really that COVID. ourselves for We the we that are business we and substantial made and we'll people and engagement. grow hours of as over users, that of value. hold with growth that, said the happened couple peak the feel peak to have last continue And the years investments find now, excited at of right in We a company long-term the about make Dave

business digital in than entertainment, gaming, social. a anything almost growing think I faster

And really investments in leverage. make feel where with we a nice of So, in and place are. are combination growth satisfied we can we where we like really a are

Thanks, Great. hop I'll in Mike. the back queue.

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

is open. line Your

XX over which first age from any looks engaging taking quarter Good is first just the one morning, over that What Maybe biggest there fourth in of that it grew seen. driving that that million would for call over the like X I at quarter, older the is you've Thanks I looking think DAUs? in users here. the one questions. everyone. out have group DAUs, a little Dave, up uptick for the the I increases you in? those guess XX are two

working an Mike, think result comment that in press about there of a a for, just you that aspect past comment guess talked on cards the is credit the Is of I was release the I some margin gross card. on are side, a improvement as some then, And on payments is of there in prepaid that about that might about element direct-to-consumer in there in the leverage? seeing there Thanks. driving we as margins mobile

variety and are the we sense all it this public our to around the went vision will this Roblox older work, to for since world. our Hey, before we Yes. types concerts been category sharing will platform when vision Roblox, first years on they off a is of many people, many people play younger of ages we go of on whole have been start on working on learn And, and have with in product for at is and these connect will Roblox wide of vision that things. the

quality of to growth pleased improve the older our continue as really engine with we We're the simulation.

more are world. quality and and are is experiences rapidly. very, XX all search creating people exciting XX discovery, improve and creators the that seeing As over start more to developers we very the we for of growing

a base seeing experiences as older We are is like and We creator frontlines headroom by been connect are are to that still the funded flocking as much older experiences player are more there way as to. Roblox which socially in our high start players really enormous quality use think well. driving type fund people to

long-term bullish we're size So, of that really on cohort. the

are credit seeing just card to I thing, what want we the On highlight there.

money is on that our because has use They can to sales Roblox. growth passed They seeing year-on-year there our already year-on-year ways community prepaid growth many so of rate spend for credit cards. use rate cards. We bookings cost are our

grows course, our of leverage seeing get to, partners cost Apple. addition we're faster and as In like to bookings than sales. we of Google And their the expands, that as

Great. Thank you.

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

Your line is open.

of we seeing acceleration. come be monetization a maybe reasonable to could out balance that's trends, going pipeline? sort Curious we sense balanced growth Hi, is back how wanted thanks bigger to thinking coming in I for now more question. to taking this bookings the bookings of you that guys user maybe between are the if for of about initiatives general reasonable it product relative XX% the to maybe rate for to us and as sort of development picture OpEx as year over about think are diversion And and to year? next the provide

user grow, parts come most they at quarters, world that per with us things seen time those per spending our we capital users. and last at continued And look active our multiple How we've healthy users been bookings DAU then, start look growth look number of much healthy on do are hour That again, we most a across with that often spent We and and engagement bookings. few the gives user much us. daily to Then really has of Clark, Hey, our how groups. to we frequency the And Roblox. in base base. we've over at drive the platform. on monetization. age the the has being really how of is Hours

money us more more combination So, spending is the on a more really spending as it platform time of with well. users and

is at supplemental our payer. monetization slightly material, payers by there unique primarily increase being payers, you -- the but driven in growth that per If the see bookings you'll monthly look more in the is growth the

in Europe. in what growth in out is for eastern Europe expect regions per look by first where in year-over-year western region, the by see if bookings DAU growth broke have Europe good so we we the all material had region you'll in monetization the And time, which high vis-à-vis simply supplemental

in maturation to is we of over on. run the can they look we and that if for U.S. the time goes know long On to are more hand payer see and the peaks time this very monetize at they cohorts Canada, other tend of very, monetization you as time starting

the more And we have cohorts. U.S., so, in of those

higher going think well of and more become You see peaks in COVID. are the actually peaks cohorts the of world, there Other terms we time we larger their actually of mature. we at even to get over as were as when monetization parts will

like older now and payer from good coming a So, right was we have U.S. of growth. incredible cohorts an older in new lot cohorts payer and mix aged really powering the

growth most to line our now, fact right is grow. users driven the top the generally that So, of by continue just

look our plus been charts really engagement our the with have charts, up last while seeing you and they users incrementally. a have for us of four that over right DAU are But signs at If certainly -- been healthy especially people spending the into we spending years.

if does adoption a really Or, we higher something of Thanks gift territories the have expect there? prepaid if is margin that the up propensity maybe of implication by positive and to cards, should pick international And there sort markets, is driven on lot. too? And sort for markets? international just that quickly I does cards those in follow-up a in that could topic of be more

a in It in they anywhere positive to world. cards for for And implications don't access base. because in Thanks, has source just that the prepaid Clark. places to where sure margins currency have make it, much we to very access user of friction continue have demand it's our to low look consumers

where business in an prepaid store focused probably our growth, throughout is foreign growing There value but will And highly doing to find for the actually is growing that excellent to growth there and we globally. higher We excited a just card propensity team are on literally job. is there places definitely be continue are markets internationally.

convenient gift in XXX% growth cards Japan. seeing Japan, different give I'll now in complementing year-on-year we in stores an are XX,XXX over are available Roblox example

Needham. line is from of Bernie with next Your question McTernan the

line Your open. is

you is and that and AI generative tools you content wondering And was very for Dave, much. age being games, the demos? think geared demos? how most do wondering, of up you is to frontline, it what the was towards could age Thank are always reason just types you older content seeing Great. mentioned impact really that age I fidelity so highest I are popular amount

Hi. a before But you billions as frontline that place have billions billions players. huge become have want well and Jailbreak, little of high type become huge is favorites is to international And experiences where well Yes. audiences many with more experience. highlight experiences that and Me!, as traditional Roblox and favorites really Roblox name types I of have and never age seen favorite. people been new the and created Brookhaven favorites on older resolution as the of all Adopt

just I really, So, that. really of am proud

and have search the generation, experience it means to seeing now poised on size base generation, uniquely early of and the signs material our of avatar opportunity with user generation, means accelerate whole million AI. of language million are ultimately, train, XX means of discovery, AI-generative users, platform reinforce, to quality and enormous translation, and our and the means you're of code to and technology, it XD our it We because active but generation accelerate the quality real-time our an quality daily it of we XX really it

that. keep on eye an So,

We are material our robust. from really the really our with but signs and generator, a this platform we're use throughout generator to early building code proud

just booking is is outlook, what's it just change some now this and leverage, prioritization margins, driving cost outlook a leverage? of for a think And for better on infrastructure about on commentary in this this higher trying Mike the follow-up a Understood. for to compensation

couple massive been on of keeping also still and last modest, thing audience, through we've a getting attention making our five Well, that. is years probably growing with the bookings top and to COVID growing over Bernie. so reopening, of are geared and we and towards start the the to Hey, back quarters, these that The over lat investments it's over one that XX%. growth rates

thought investments ROI, driven were bookings like out growth. very to return we we've high those So, with

much a level growth. higher of at now are bookings we So,

time growth just in are Those hiring, and a higher operating we've outstretch and made We recently. room infrastructure decisions to top that to and allow got that relatively leverage, line investments. have growth. more growth in good for the it's so, we new We like feel

So, happen overnight. they don't

that of we and and beyond. we year, from start to benefits and year, will see We 'XX next in talked about into the this early go as back-half then as

So, line very and scale, getting was at things of certain the to a scale, result back much ensuring a our that infrastructure to a getting growth. certain getting teams done, high top

Dave. Thanks, Mike. Thanks, Understood.

is with line Your Jefferies. Andrew question of the Uerkwitz from next

open. Your line is

thank rate higher Eastern, if very little if Hey, much and give around, is models, for can they a data region, much you so where the questions. what lot those color really numbers not make it's easier you that us. my could Canada? you taking appreciate could interesting entirely going for color, it's down break just the would and approach us like, Europe you then We think Western On a say, though, look life than, to could of between, Europe by DAU U.S., little give APAC, bit go, trends a of kind just you like? say, one, And that those

Andrew. Hey,

their 'XX been payer the at prior of pull left the -- the you still of think I front in just -- U.S. going Seattle, you that Again, what the look of deal something actually let COVID. above time even basically see with or has is, it's of in cohorts quarters middle monetization was beginning data at of first, and of to length me terms to in in I'm the with has levels, us. any So, the fourth the fourth me, quarter monetization

benefiting users us cohorts that over but also these for great with over new these payers, from monetization have lots we of That's a new are been time. adding So, while, a turn. really and really between

newer Yet, still Regions of a younger of ultimately time. these were in out payer good with where fairly that see markets than Europe. compound in peak growth high in those you Europe between I as those APAC, base, like In the than aged gotten the penetration the sense, for us, in U.S. are up we Eastern back base has at was over at not APAC. markets were started can and have said, building lower, as in markets aged and again, Europe will is pretty super our and the Europe APAC profiling beginning still level user in are then markets, still we a COVID. more of and just And monetization up. And mix to a

in we terms Western and And in closely so, benefits. work of the Europe, two diverging those economic were

to Europe have Ultimately, should and per We in and and capita West in we've monetization in very certain should fairly what the Asia-Pacific, Canada. the ANZ, like the of the pretty part In seen world. yes, track we monetization that close U.S. markets be in places similar U.K., closely. GDP to

are that think true. Asia-Pacific, there Asia where I will of ultimately Europe, parts other In Western So, very be Southeast Japan. than is different

earlier in to we we moved in Japan time see small relatively U.S. it's amount over and very the engagement, was what you Canada. user much will still APAC closer and very Japan but So, quickly, base that move know, going towards trend monetization, our of very much -- what we

is Latin just will even And We've it it over it watch base places America. as time, a there is have up will we it the over out So, that I That rest base number. world will incredibly time. slower but to much like and call move bookings built dominant definitely growth, sort well, fantastic user a us we served in and strong engagement well. cohort has of of have

Got one follow-up And color. it, David. for I then, guess appreciate the just

is, what's from Roblox, advertising? certain because kind have Are brands a would a views around really commentary and engage your with they early, I you the advertising that have towards they the of how short you early ad? of now brands, opportunity can't reception finding been normally On but here, it's type just form the know gravitating what are product, curious shaped

we say, is shop Roblox you that any have of is billboard, platform an from types in anywhere. image a visions can virtual a two advertising one There's is which Roblox. would brand -- traditional, a where on on experience I

offering partners or their it disruptive something the and of the advertisers XD. What they one movie see much So, like to new gently so, explore and to two notion that. want posters, one a is is Roblox our experience, is some and people throughout of movie, bring to in introducing bigger imagine more ability days people

go of native already our way Garden, who Gucci This on it really This have is early World. to people jump the in go Vans quote some there where want a a format where And allow go partnerships, the I'm non-invasive that Vans Once Experience, they these go Annabelle. a called We great World, are to seeing you these is. is disruptive excited experience Nike, It's for out Gucci who something new Garden, reality, hanging Ads, saw spatial are XD Roblox is and experience about, what where experience into from Portal ad this they it. shared we're in format. and where signal. to might how Annabelle again, the and given users to

keep up-to-date on we it. So, will you

We especially market, QX, essentially early Roblox more advertising on great that but it. place this so creating it's we much be on to new really so, come, are type engagement, that very signals, portal and We'll XX.X in we are on billion referral ads. this, launch have bullish of hours fortune to a

it. Thank Got you, guys.

from comes line Champion Tom next Your of the question Sandler. with Piper

open. is line Your

familiar to I have or similar we're you like for Tom. I should the that inception more expect but has in high of much future? is it's the to-date? the here? guess we Thanks been Hi, for something in game on lines, funding one funds, fund with progress Can on Thanks. enough for sort David this rate How talk picking question. used Jim about fund. taking

are, familiar with majority experiences highlight there Roblox on Roblox the you, have well and always chatting primary to dig the have of want the I also of to the of self-service. are find and have with will where can if game gotten all fund has it, want highlight gotten is to that we no up primary numbers we jumpstart the to And we in they're if we an Mike I areas. literally all certain to will want We've and I community highlight way public. that we've educational I them grow for them, intervention. fund, grown way Yes, used

more attractive we for want risk same of that funds, education. of wanted older thing experiences to case the side-by-side, I In doing take players. creating the the we developers help be the to are might in game highlight

experiences in that in players, Robotics, health, XD work older could are we may with the somewhat jumpstarting Boston education, is are day. opportunity quote a want but fund the also working similar, we we done is things to imagine, we experiences around for some and Museum for So, have educational There we done are go, together to I Science may there addition the experiences. we there for the opportunity of experiences you around for office. work where have FIRST don't mental

to on the going pull are anything can the with share up see you numbers we actual and if We numbers.

Yes.

So, is at Jim, the fund earmarked million. $XX

all platform. the fund, the We time of in and and economics The we experiences on just on are basis. on look at a these self-started, of game are it have it happy weekly the experiences that spent our platform we majority capital. vast of the it exists of point the very we to performance, all But some with not Dave's that track the do and

Great, you. thank

Thanks.

Your of Daiwa. the Kees next from line question Jonathan is from

line open. Your is

Good The have for on commentary self-serve, guys, questions. thanks wanted you be terms more just contribution more talking testing the on, kind push not guys about and XXXX? in QX of its interesting you're will in Great. in pubmed, how of a albeit to types of Dave's top delivered. about to ads. two nothing that's to kind The -- line, my specifically going the that So, taking morning, material. contribution been of up of follow-up conservative I currently how and make towards a ads, I going

an give specifically, ad of in can update something rollout, contributing when self-service you materially? So, could the and us be you terms

Yes, I comment. will

rollout on both image year full on this, to for We essentially portal advertisers server ad that allows something their ads, of this self-service to these Roblox. experiences and a to publish expect own types

we are not on let very make, expect We revenue, do our but sharing our call Mike, what on I will as comment I it We know are we are, if this. significant being that, forecast conservative don't as internal to far externally. things you

Yes, about XXXX something certainly that, and changing I on talk today. the it will wouldn't but in be I more there second will mean models we advertising be based after quarter, for

an for number are you just if quarter? users, clothing, I the of it, talked number more what about users helpful. is this may, one And Got wondering that's of layered update, this last the of

that's animation the be which can have on community, the I bigger will created the we where highlight thing includes clothing our Yes, platform facial animated, to well. see year can if it by everything want being here, to check, point the to every as it diagnosis this happening out. and migration is migration avatar includes we that our and check, avatar and

Once enhancement the clothing what layered towards system be user-created avatar as UGC system, what first are the the a can that. to avatars on up step believe we with of type breadth will see again, call we we big what first pulling clothing a numbers and on you. of is view diversity and with we share highly the metric layered So, on some maybe

actually numbers. is current this Jonathan, Yes.

least but living So, item as clothing. a have acquired million XXX users layered in at May, single

quarter too helpful. was that too. jump a Great, It from was last big

a thanks So, lot.

Thank you.

with question We have time for the of one Ross LightShed from line Partners. more Brandon

open. is line Your

just taking for the and especially comes thanks up? earlier kind so way maybe Epic? with discussed are an the but in started, investing taking be wake actually discussion, in especially uncovering? call strengthening could from sounds the or that any What generative the leaving to that Or, you Hey, expediting not AI. of to on by there question. it the and And margin like you. have community, Are of it opportunities table competition some many investment speeding Thank you you was this the more? where opportunities, when I wanted is things with it cost this like just unpopular end

Yes. I rapidly. to continue that want highlight to hire we

platform product right QX our growth hiring continue all almost We starts really are We where through next engineering of the optimal have end of a way year, next intersect now. this going beyond. rate our And to the got year. to the in we bookings mature year hiring very year, and think

anything So, leaving on are the believe don't table. we we

question. so. the the question, or business we years the Interesting we appreciate and are the of Mike. today. That beginning over it's COVID Brandon, maybe where last Hey, covers It's at really helpful three to look

the the infrastructure. amount on tripled tripled of number more people, spend we think I than of

infrastructure. allows any we the what to that improving that in I and you our reducing investment growing exceed we fact in and bookings of And spent those headcount probably the on rate investments. heard growth growth today over way reaccelerated think $X was are has in million dramatically rate that infrastructure. Not

I look sustainable have have examples best investment that made of I differentiated. business company, it's tried We the that seen. the one ever a consistent great in of -- growth It's the history always if at you of think the things and

user getting just our find part drive much never deserve, in organic It's developer we investment we any of is bookings of growing reaccelerated. better all point we has do growth, so dramatic and taking do we are confident what lead now so But where steps. accelerate a base a to the really at the ourselves time. a Those that are things the not trying growth investment and expanding that the the letting user and community that content innovating, base product cost and right

just and that innovating And investments. are. step we ahead. staying number will a who feel so, can on that key of we we ahead comfortable always the be That's But focused be

the that to is ended model So, this are There there business the sides. is ahead that you balance. sustainable. both have a appreciate there on is is because question and it also long-term love of sides two stay call I And and proving way we really a the have really investing

six just If last look in the anything out, that business. at the quarters proves

last of operating business much in have six to so cash. quarters generates billion And yet, been literally spend almost Continuing last infrastructure. six the over cash $X.X over because neutral to $X quarters. the invest, cash We continuing billion itself the

up over few to think we And And it the that's now. business. very that quarters So, most the continue way next we really feel we balance things that few those hope the like years. always long-term next we until we have But will and well value. have drives run balanced ultimately, the

appreciate the question. we So,

Thank you.

that's joining Thank you Bret, us you can And today. for a close it out. wrap.

today's call. for This you participation. you. does Thank your Thank conclude conference

You may now disconnect.