Q4 2024 Supplemental Materials

Roblox demonstrated robust financial and operational expansion during the fourth quarter of 2024, characterized by a 32% year-over-year revenue increase to $988 million and a 21% rise in bookings to $1.36 billion. This growth was supported by significant user engagement, with the platform reaching 85.3 million average daily active users and 18.7 billion total hours engaged. While the company reported a consolidated net loss of $221 million, it maintained a strong liquidity position with $4.02 billion in cash and investments, alongside positive free cash flow of $184 million.

Management emphasizes non-GAAP metrics, such as adjusted EBITDA of $66 million, to better reflect operational trends and cash generation, as GAAP revenue recognition is deferred over the estimated lifetime of a paying user. The company’s accounting model distinguishes between durable and consumable virtual items to manage this deferred revenue effectively. Looking ahead, Roblox projects continued momentum for 2025, with anticipated revenue growth between 18% and 21% and bookings growth between 19% and 21%.

Operational oversight remains a priority, as the company continues to refine its metrics to account for botting, unauthorized activity, and the complexities of linking multiple accounts. These refinements are intended to improve the accuracy of engagement data, though they may influence future reporting. By balancing aggressive platform expansion with rigorous financial management and technical improvements to user verification, the company aims to sustain its trajectory as a leading global interactive platform.