Roblox (RBLX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $919 million, up 29% year-over-year, with bookings at $1.13 billion, up 34%, and DAUs at 88.9 million, up 27% year-over-year, with engagement at 20.7 billion hours, up 29%.

• Net loss for Q3 was $239.3 million, an improvement from the prior year, while adjusted EBITDA turned positive at $55 million.

• Free cash flow surged 266% year-over-year to $218 million, with net cash from operations at $247.4 million, up 120%.

• User and engagement growth was strong across all regions and age groups, with notable gains in APAC, Europe, and among users over 13.

• CFO Michael Guthrie announced his resignation, with a transition plan in place until a successor is appointed.

Financial highlights

• Q3 2024 revenue: $918.95 million (+29% year-over-year); bookings: $1.13 billion (+34% year-over-year).

• Net loss for Q3 2024: $239.3 million; adjusted EBITDA: $55 million, up from a loss of $26.4 million in Q3 2023.

• Free cash flow: $218 million, up from $59.5 million in Q3 2023.

• Developer exchange fees hit an all-time high of $231.5 million, up 36% year-over-year.

• Cash and investments totaled $3.9 billion, with net liquidity at $2.9 billion.

Outlook and guidance

• Q4 2024 revenue guidance is $935–$960 million; bookings guidance is $1,336–$1,361 million.

• Full-year 2024 revenue guidance: $3,549–$3,574 million; bookings: $4,343–$4,369 million.

• Net loss for FY24 expected to improve to $(1,003)–$(1,023) million; adjusted EBITDA forecasted at $125–$145 million.

• Free cash flow for FY24 projected at $621–$636 million, a 400%+ increase year-over-year.

• Management expects continued investment in safety, infrastructure, and developer community, with operating leverage anticipated through 2025.