Roblox Reaches New Highs in the Third Quarter: Focus on Safety and Growth

Roblox, the world's leading platform for immersive games and 3D experiences, reported extraordinary results in the third quarter of 2024, exceeding expectations and strengthening investor confidence. The focus is not only on the impressive growth but also on the ongoing efforts to ensure safety and innovation on the platform. Roblox's mission is clearly defined: to connect one billion people through optimism and civility. This requires continuous investment in platform security, an area where the company has heavily invested for nearly two decades. With over 30 improvements to security systems this year alone, Roblox sets benchmarks in user protection. Significant progress was made in the third quarter, such as reducing toxic behavior in voice chat thanks to improved models and tools for developers to moderate their content. A highlight of the security commitment is the self-developed voice safety model, now available as open-source on Hugging Face and being adapted worldwide. This underscores Roblox’s commitment to not only its own platform but also to having a broader impact on online safety. Financially, Roblox exceeded its own forecast in the third quarter with a revenue of $919 million, representing an impressive year-over-year growth of 29%. Bookings reached $1.129 billion, an increase of 34%. The number of daily active users (DAUs) also grew to 88.9 million, a 27% increase compared to the previous year. With a growing market share and a clear strategy, Roblox aims to capture 10% of the global gaming market, presenting a tremendous opportunity for growth. This aligns with the introduction of new technologies and the expansion of the virtual ecosystem, including a partnership with Shopify and the introduction of paid access to gaming experiences. In conclusion, the company is strengthening its financial position, as demonstrated by the impressive growth in cash flows. From a negative free cash flow situation five quarters ago, Roblox has achieved a free cash flow of $218 million in the third quarter. The solid financial position is also highlighted by the upgrade of Moody’s ratings of the senior notes. With a clear focus on long-term innovation and security measures, Roblox is well-equipped to remain a leader in the gaming industry while meeting the needs of its growing community.