Roblox has released its financial outcomes for the fourth quarter and fiscal year ending December 31, 2023, indicating ongoing growth in revenues alongside increased losses for the user-generated content platform.
In the fourth quarter:
- Revenue reached $750 million, marking a 30% increase year-on-year.
- Bookings totaled $1.13 billion, reflecting a 25% increase year-on-year.
- Net losses amounted to $325 million, compared to $288 million in the corresponding quarter of the previous year.
For the full year:
- Revenue stood at $2.8 billion, indicating a 26% increase year-on-year.
- Bookings amounted to $3.52 billion, showing a 23% increase year-on-year.
- Net losses totaled $1.16 billion, compared to $934 million in the previous year.
Despite these figures, the essence of Roblox’s narrative remains consistent. The platform continues to expand, achieving a milestone in Q4 by surpassing $1 billion in bookings for a quarter for the first time. However, the company is still grappling with substantial losses.
Reflecting on these results, Roblox’s founder and CEO, David Baszucki, expressed satisfaction with the company’s growth trajectory. He stated, “We finished 2023 with another strong quarter of growth as we continue to drive innovation and new experiences across the Roblox platform.”
Baszucki also articulated the company’s long-term ambition of attracting over 1 billion daily active users, emphasizing the values of optimism and civility. He highlighted the positive impact of network effects in content, social connections, and communication, as well as investments in immersive experiences, advertising, and AI.
Despite progress, Roblox acknowledges the distance it needs to cover to reach its target of 1 billion daily active users. Although daily active users increased by 22% year-over-year in Q4, reaching an all-time high of 71.5 million, there is still significant ground to cover.
Roblox attributes this growth primarily to older users and international markets. Additionally, the number of individuals paying for services on the platform increased in Q4, with 15.9 million monthly unique payers spending an average of $23.65 per month, setting a new record in average bookings per monthly unique payer.
Expansion onto platforms like Meta Quest and PlayStation contributed to attracting new users. Roblox also noted control over spending on personnel and certain infrastructure/trust and safety measures during the quarter.
The company anticipates these trends to persist, with continued growth in content quality, increased payer conversions, and expansion into new platforms. Moreover, Roblox plans to scale its brand-related microtransactions and advertising business as more companies invest in establishing a presence on the platform.
Looking forward, Roblox projects revenue for 2024 to increase by 18% to 21%, ranging between $3.3 and $3.4 billion. However, it also expects net losses to deepen at the same rate, with anticipated losses between $1.37 billion and $1.4 billion by the end of 2024.
