Roblox (RBLX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 31% year-over-year to $893.5M–$894M, with bookings up 22% to $955M–$955.2M, both exceeding guidance and driven by a change in estimated average lifetime of a paying user from 28 to 27 months, which accelerated revenue recognition.

• Net loss narrowed to $205.9M–$207M, a significant improvement from the prior year, and adjusted EBITDA turned positive at $66.5M–$67M.

• Free cash flow reached $111.6M–$112M, a major turnaround from negative $95.5M–$96M a year ago.

• Daily active users (DAUs) hit a record 79.5M, up 21%–24% YoY, with strong international growth and 78% of DAUs outside the US and Canada.

• CFO Mike Guthrie announced his planned departure, with a transition process underway.

Financial highlights

• Revenue: $893.5M–$894M (+31% YoY), above guidance; bookings: $955M–$955.2M (+22% YoY), above guidance.

• Net loss: $205.9M–$207M, improved from $282.8M–$285M in Q2 2023; adjusted EBITDA: $66.5M–$67M, up from a loss of $49M.

• Free cash flow: $111.6M–$112M, up from negative $95.5M–$96M YoY; net cash from operations: $151M–$151.4M, up 433% YoY.

• Cash, cash equivalents, and investments totaled $3.6B as of June 30, 2024; net liquidity was $2.6B.

• Developer exchange fees grew 11%–26% YoY, reaching $202M and reflecting higher developer earnings.

Outlook and guidance

• Q3 2024 revenue guidance: $860M–$885M (+21%–24% YoY); bookings: $1B–$1.025B (+19%–22% YoY).

• Q3 net loss guidance: $275M–$255M; adjusted EBITDA: $22M–$42M.

• FY24 revenue guidance: $3.49B–$3.54B (+25%–26% YoY); bookings: $4.18B–$4.23B (+19%–20% YoY).

• FY24 free cash flow guidance: $505M–$535M, a substantial increase from $124M in 2023.

• Full-year net loss expected between $1.089B–$1.049B; adjusted EBITDA forecasted at $92M–$132M.