Roblox (RBLX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $988 million, up 32% year-over-year, with bookings at $1.362 billion, up 21% year-over-year, both surpassing guidance.

• Daily active users (DAUs) in Q4 were 85.3 million, up 19% year-over-year, with hours engaged at 18.7 billion, up 21% year-over-year.

• Free cash flow for Q4 was $121 million, up 54% year-over-year; full-year free cash flow surged 417% to $641.3 million.

• Net loss for Q4 was $219.6 million; adjusted EBITDA was $66 million, reflecting improvement from the prior year.

• Full-year revenue reached $3.6 billion (up 29% year-over-year); full-year bookings totaled $4.37 billion (up 24% year-over-year).

Financial highlights

• All key financial and operating metrics exceeded guidance.

• Developer exchange fees in Q4 were $280.6 million, representing 28% of revenue and 21% of bookings.

• Personnel costs (excluding stock-based compensation) were $200 million in Q4, representing 20% of revenue and 15% of bookings.

• Stock-based compensation expense for Q4 was $258.2 million.

• Gross margin for Q4 was approximately 78%.

Outlook and guidance

• Q1 2025 revenue guidance is $990–$1,015 million, up 24–27% year-over-year; bookings guidance is $1,125–$1,150 million, up 22–24%.

• Full-year 2025 revenue guidance is $4.25–$4.35 billion, up 18–21%; bookings guidance is $5.20–$5.30 billion, up 19–21%.

• Free cash flow for 2025 is projected at $800–$860 million.

• Q1 2025 adjusted EBITDA expected between $20–$40 million, with a projected net loss of $267–$287 million.

• Continued investment in engineering, trust and safety, and developer community, while maintaining margin expansion.