Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Roblox Corporation	NYSE:RBLX	NYSE	Common Stock

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-0.97	-1.47%	65.08	66.28	65.00	65.26	3,660,658	18:54:36

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________

FORM 8-K

____________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 6, 2025

____________________________

Roblox Corporation

(Exact name of Registrant as Specified in Its Charter)

____________________________


Delaware	001-39763	20-0991664
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3150 South Delaware Street, San Mateo, California		94403
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (888) 858-2569

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

____________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Class A Common Stock, $0.0001 par value

RBLX

The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 6, 2025, Roblox Corporation (the “Company”) issued a press release announcing financial results for its fourth quarter and year ended December 31, 2024 as well as guidance for its first quarter and full year 2025. The Company also posted on its investor relations website (ir.roblox.com) a shareholder letter and supplemental materials for its fourth quarter and year ended December 31, 2024. A copy of the press release and shareholder letter are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein. Information on the Company’s website is not, and will not be deemed, a part of this report or incorporated into this or any other filings that the Company makes with the Securities and Exchange Commission.

Item 7.01 Regulation FD Disclosure.

The Company also reported guidance for its first quarter and full year 2025 in its press release and shareholder letter, which were issued on February 6, 2025, copies of which are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.

The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits


Exhibit Number						Description
99.1						Press Release dated February 6, 2025
99.2						Shareholder Letter dated February 6, 2025
104						Cover Page Interactive Data File (formatted as inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	ROBLOX CORPORATION

Date: February 6, 2025	By:	/s/ Michael Guthrie
		Michael Guthrie Chief Financial Officer (Principal Financial Officer)

Exhibit 99.1

Roblox Reports Fourth Quarter and Full Year 2024 Financial Results

Strong Year-Over-Year Growth Across Core Financial and Operating Metrics; Including Revenue, Bookings1, DAUs, and Hours Engaged

SAN MATEO, Calif., February 6, 2025 - Roblox Corporation (NYSE: RBLX), a global platform bringing millions of people together through shared experiences, released its fourth quarter and full year 2024 financial and operational results and issued its first quarter and full year 2025 guidance today. Separately, Roblox posted a letter to shareholders and supplemental materials on the Roblox investor relations website at ir.roblox.com.

Fourth Quarter 2024 Financial, Operational, and Liquidity Highlights

•Revenue was $988.2 million, up 32% year-over-year.

•Bookings1 were $1,361.6 million, up 21% year-over-year.

•Net loss attributable to common stockholders was $219.6 million, while consolidated net loss was $221.1 million.

•Adjusted EBITDA1 was $65.6 million, which excludes adjustments for increases in deferred revenue and deferred cost of revenue of $381.8 million and $(65.2) million, respectively, or a total change in deferrals of $316.5 million.

•Net cash and cash equivalents provided by operating activities was $184.5 million, up 29% year-over-year, while free cash flow was $120.6 million, up 54% year-over-year.

•Average Daily Active Users (“DAUs”) were 85.3 million, up 19% year-over-year.

•Average monthly unique payers were 18.9 million, up 19% year-over-year, and average bookings per monthly unique payer was $23.97, up 1% year-over-year.

•Hours engaged were 18.7 billion, up 21% year-over-year.

•Average bookings per DAU was $15.97, up 1% year-over-year.

•Cash and cash equivalents, short-term investments, and long-term investments totaled $4.0 billion; net liquidity2 was $3.0 billion.

Full Year 2024 Financial, Operational, and Liquidity Highlights

•Revenue was $3,602.0 million, up 29% year-over-year.

•Bookings1 were $4,369.1 million, up 24% year-over-year.

•Net loss attributable to common stockholders was $935.4 million, while consolidated net loss was $940.6 million.

•Adjusted EBITDA1 was $180.2 million, which excludes adjustments for increases in deferred revenue and deferred cost of revenue of $792.4 million and $(164.9) million, respectively, or a total change in deferrals of $627.5 million.

•Net cash and cash equivalents provided by operating activities was $822.3 million, up 79% year-over-year, while free cash flow was $641.3 million, up 417% year-over-year.

•Average DAUs were 82.9 million, up 21% year-over-year.

•Hours engaged were 73.5 billion, up 23% year-over-year.

1 Bookings, Adjusted EBITDA, and free cash flow are non-GAAP financial measures that we believe are useful in evaluating our performance and are presented for supplemental information purposes only and should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. For further information, please refer to definitions and reconciliations provided below and in our annual and quarterly SEC filings.

2 Net liquidity represents cash and cash equivalents, short-term investments, and long-term investments, less long-term debt, net.

“Roblox had a strong 2024, driven by our commitment to innovation and community. We’re building a platform that goes beyond technology—it’s about fostering genuine connections. As we aim to support 10% of the global gaming content market, we’ll continue investing in our virtual economy, app performance, and AI-powered discovery and safety, empowering creators and enhancing the user experience,” said David Baszucki, founder and CEO of Roblox.

“We are pleased that we delivered Q4 2024 results at or above the guidance we provided on our Q3 2024 earnings call. In Q4, we also continued to exceed the long term financial goals we communicated at our investor day in November 2023. For FY 2024, revenue and bookings grew by 29% and 24%, respectively, year-over-year; margins improved by over 620 bps; and cash flow from operations grew by 79% to $822.3 million from $458.2 million in FY 2023 and free cash flow increased by 417% to $641.3 million, demonstrating the operating leverage in our business model,” said Michael Guthrie, chief financial officer of Roblox.

Forward Looking Guidance

Roblox provides its first quarter and full year 2025 GAAP and non-GAAP guidance:

First Quarter 2025 Guidance

•Revenue between $990 million and $1,015 million. Our revenue guidance assumes that there are no material changes in estimates used in our revenue recognition, such as the estimated average lifetime of a paying user.

•Bookings between $1,125 million and $1,150 million.

•Consolidated net loss between $(287) million and $(267) million.

•Adjusted EBITDA between $20 million and $40 million, which excludes adjustments for:

◦Increase in deferred revenue of $140 million.

◦Increase in deferred cost of revenue of $(20) million.

◦The total of these changes in deferrals of $120 million.

•Net cash and cash equivalents provided by operating activities between $360 million and $380 million.

•Capital expenditures of $(20) million.

•Free cash flow between $340 million and $360 million.

Full Year 2025 Guidance

•Revenue between $4,245 million and $4,345 million. Our revenue guidance assumes that there are no material changes in estimates used in our revenue recognition, such as the estimated average lifetime of a paying user.

•Bookings between $5,200 million and $5,300 million.

•Consolidated net loss between $(1,070) million and $(995) million.

•Adjusted EBITDA between $190 million and $265 million, which excludes adjustments for:

◦Increase in deferred revenue of $975 million.

◦Increase in deferred cost of revenue of $(150) million.

◦The total of these changes in deferrals of $825 million.

•Net cash and cash equivalents provided by operating activities between $1,050 million and $1,110 million.

•Capital expenditures of $(250) million.

•Free cash flow between $800 million and $860 million.

Earnings Q&A Session

Roblox will host a live Q&A session to answer questions regarding its fourth quarter and full year 2024 results on Thursday, February 6, 2025 at 5:30 a.m. Pacific Time/8:30 a.m. Eastern Time. The webcast will be open to the public at ir.roblox.com or by clicking here.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion global DAUs, our vision to reach 10% of the global gaming content market, our efforts to improve the Roblox Platform, our investments to pursue the highest standards of trust and safety on our platform, our immersive advertising efforts, including our ads manager and independent measurement partnerships, our efforts to provide a safe online environment for children, our efforts regarding content curation, and live operations, our efforts regarding real world commerce, the use of AI on our platform, our economy and product efforts related to creator earnings and platform monetization, our sponsored experiences, branding and new partnerships and our roadmap with respect to each, our business, product, strategy and user growth, our investment strategy, including our opportunities for and expectations of improvements in financial and operating metrics, including operating leverage, margin, free cash flow, operating expenses and capital expenditures, our expectation of successfully executing such strategies and plans, disclosures regarding the seasonality of our business and future growth rates, benefits from agreements with third-party cloud providers, disclosures about our infrastructure efficiency initiatives, changes to our estimated average lifetime of a paying user and the resulting effect on revenue, cost of revenue, deferred revenue and deferred cost of revenue, our expectations of future net losses and net cash and cash equivalents provided by operating activities, statements by our Chief Executive Officer and Chief Financial Officer, and our outlook and guidance for the first quarter and full year 2025, and future periods. These forward-looking statements are made as of the date they were first issued and were based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,” “vision,” “envision,” “evolving,” “drive,” “anticipate,” “intend,” “maintain,” “should,” “believe,” “continue,” “plan,” “goal,” “opportunity,” “estimate,” “predict,” “may,” “will,” “could,” and “would,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including our annual reports on Form 10-K, our quarterly reports on Form 10-Q and other filings and reports we make with the SEC from time to time. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs, including the repayment of our senior notes; the demand for our platform in general; our ability to retain and increase our number of users, developers, and creators; the impact of inflation and global economic conditions on our operations; the impact of changing legal and regulatory requirements on our business, including the use of verified parental consent; our ability to develop enhancements to our platform, and bring them to market in a timely manner; our ability to develop and protect our brand and build new partnerships; any misuse of user data or other undesirable activity by third parties on our platform; our ability to maintain the security and availability of our platform; our ability to detect and minimize unauthorized use of our platform; and the impact of AI on our platform, users, creators, and developers. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from our expectations is included in the reports we have filed or will file with the SEC, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Special Note Regarding Operating Metrics

Additional information regarding our core financial and operating metrics disclosed above is included in the reports we have filed or will file with the SEC, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We encourage investors and others to review these reports in their entirety.

ROBLOX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par values)

(unaudited)


	As of December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	711,683	$	678,466
Short-term investments	1,697,862		1,514,808
Accounts receivable—net of allowances	614,838		505,769
Prepaid expenses and other current assets	75,415		74,549
Deferred cost of revenue, current portion	628,232		501,821
Total current assets	3,728,030		3,275,413
Long-term investments	1,610,215		1,043,399
Property and equipment—net	659,589		695,360
Operating lease right-of-use assets	665,885		665,107
Deferred cost of revenue, long-term	321,824		283,326
Intangible assets, net	34,153		53,060
Goodwill	141,688		142,129
Other assets	13,619		10,284
Total assets	$	7,175,003	$	6,168,078
Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable	$	42,885	$	60,087
Accrued expenses and other current liabilities	275,754		271,121
Developer exchange liability	339,600		314,866
Deferred revenue—current portion	3,004,969		2,406,292
Total current liabilities	3,663,208		3,052,366
Deferred revenue—net of current portion	1,567,007		1,373,250
Operating lease liabilities	670,051		646,506
Long-term debt, net	1,006,371		1,005,000
Other long-term liabilities	59,712		22,330
Total liabilities	6,966,349		6,099,452

Stockholders’ equity
Common stock, $0.0001 par value; 5,000,000 authorized as of December 31, 2024 and December 31, 2023, 666,419 and 631,221 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively; Class A common stock—4,935,000 shares authorized as of December 31, 2024 and December 31, 2023, 618,116 and 581,135 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively; Class B common stock—65,000 shares authorized as of December 31, 2024 and December 31, 2023, 48,303 and 50,086 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively	62		61
Additional paid-in capital	4,220,916		3,134,946
Accumulated other comprehensive income/(loss)	(3,895)		1,536
Accumulated deficit	(3,995,637)		(3,060,253)
Total Roblox Corporation Stockholders’ equity	221,446		76,290
Noncontrolling interest	(12,792)		(7,664)
Total Stockholders’ equity	208,654		68,626
Total Liabilities and Stockholders’ equity	$	7,175,003	$	6,168,078

ROBLOX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)


	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2024		2023		2024		2023
Revenue(1)	$	988,183	$	749,939	$	3,601,979	$	2,799,274
Cost and expenses:
Cost of revenue(1)(2)	218,741		171,664		801,162		649,115
Developer exchange fees	280,610		221,750		922,821		740,752
Infrastructure and trust & safety	222,822		223,310		915,418		878,361
Research and development	355,034		341,129		1,444,207		1,253,598
General and administrative	105,323		98,776		407,507		390,055
Sales and marketing	49,765		48,503		174,181		146,460
Total cost and expenses	1,232,295		1,105,132		4,665,296		4,058,341
Loss from operations	(244,112)		(355,193)		(1,063,317)		(1,259,067)
Interest income	46,260		39,530		179,531		141,818
Interest expense	(10,331)		(10,298)		(41,184)		(40,707)
Other income/(expense), net	(10,221)		898		(11,530)		(527)
Loss before income taxes	(218,404)		(325,063)		(936,500)		(1,158,483)
Provision for/(benefit from) income taxes	2,648		277		4,114		454
Consolidated net loss	(221,052)		(325,340)		(940,614)		(1,158,937)
Net loss attributable to noncontrolling interest	(1,479)		(1,642)		(5,230)		(6,991)
Net loss attributable to common stockholders	$	(219,573)	$	(323,698)	$	(935,384)	$	(1,151,946)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.33)	$	(0.52)	$	(1.44)	$	(1.87)
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted	660,900		626,817		647,482		616,445

(1)Beginning April 1, 2024, the estimated average lifetime of a paying user changed from 28 months to 27 months. Based on the carrying amount of deferred revenue and deferred cost of revenue as of March 31, 2024, the change resulted in an increase in revenue and cost of revenue during the three months ended December 31, 2024 of $12.7 million and $2.6 million, respectively, and $98.0 million and $20.4 million, respectively, during the twelve months ended December 31, 2024. Refer to “Basis of Presentation and Summary of Significant Accounting Policies — Revenue Recognition” as described in the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for further background on the Company’s process to estimate the average lifetime of a paying user.

(2)Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.

ROBLOX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
Cash flows from operating activities:
Consolidated net loss	$	(221,052)	$	(325,340)	$	(940,614)	$	(1,158,937)
Adjustments to reconcile net loss including noncontrolling interest to net cash and cash equivalents provided by operations:
Depreciation and amortization expense	51,311		54,531		226,437		208,142
Stock-based compensation expense	258,236		250,679		1,015,794		867,967
Operating lease non-cash expense	29,527		26,262		118,119		97,063
(Accretion)/amortization on marketable securities, net	(22,393)		(20,943)		(82,835)		(73,162)
Amortization of debt issuance costs	348		334		1,371		1,316
Impairment expense, (gain)/loss on investment and other asset sales, and other, net	722		1,222		3,072		8,969
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(229,939)		(219,346)		(110,479)		(126,172)
Prepaid expenses and other current assets	(6,480)		(10,909)		(3,140)		(12,770)
Deferred cost of revenue	(66,206)		(77,805)		(165,697)		(139,879)
Other assets	1,546		228		(3,376)		(5,961)
Accounts payable	(3,123)		(7,330)		(7,527)		(3,475)
Accrued expenses and other current liabilities	12,573		11,279		(2,705)		8,680
Developer exchange liability	9,329		75,438		24,734		83,162
Deferred revenue	385,613		382,196		795,422		742,294
Operating lease liabilities	(22,807)		(3,617)		(77,428)		(50,454)
Other long-term liabilities	7,286		6,426		31,168		11,397
Net cash and cash equivalents provided by operating activities	184,491		143,305		822,316		458,180
Cash flows from investing activities:
Acquisition of property and equipment	(63,860)		(65,197)		(179,646)		(320,667)
Payments related to business combination, net of cash acquired	—		—		(2,840)		(3,859)
Purchases of intangible assets	—		—		(1,370)		(13,500)
Purchases of investments	(1,168,353)		(788,063)		(4,642,540)		(4,591,974)
Maturities of investments	920,200		686,709		3,351,970		1,642,719
Sales of investments	227,501		115,416		622,354		462,182

Net cash and cash equivalents used in investing activities	(84,512)		(51,135)		(852,072)		(2,825,099)
Cash flows from financing activities:
Proceeds from issuance of common stock	13,148		5,910		70,344		53,226
Financing payments related to acquisitions	—		—		(4,450)		(750)


Proceeds from debt issuances	—		—		—		14,700


Net cash and cash equivalents provided by financing activities	13,148		5,910		65,894		67,176
Effect of exchange rate changes on cash and cash equivalents	(4,075)		337		(2,921)		735
Net increase/(decrease) in cash and cash equivalents	109,052		98,417		33,217		(2,299,008)
Cash and cash equivalents
Beginning of period	602,631		580,049		678,466		2,977,474
End of period	$	711,683	$	678,466	$	711,683	$	678,466

Non-GAAP Financial Measures

This press release and the accompanying tables contain the non-GAAP financial measure bookings, Adjusted EBITDA, and free cash flow.

We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance.

Bookings is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Substantially all of our bookings are generated from sales of virtual currency, which can ultimately be converted to virtual items on the Roblox Platform. Sales of virtual currency reflected as bookings include one-time purchases and monthly subscriptions purchased via payment processors or through prepaid cards. Bookings also include an insignificant amount from advertising and licensing arrangements. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Adjusted EBITDA represents our GAAP consolidated net loss, excluding interest income, interest expense, other income/(expense), provision for/(benefit from) income taxes, depreciation and amortization expense, stock-based compensation expense, and certain other nonrecurring adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted EBITDA is useful to investors and management in understanding our ongoing operations and ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. Free cash flow represents the net cash and cash equivalents provided by operating activities less purchases of property, equipment, and intangible assets acquired through asset acquisitions. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property, equipment, and intangible assets acquired through asset acquisitions, can be used for strategic initiatives.

Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.

Reconciliation tables of the most comparable GAAP financial measure to the non-GAAP financial measure used in this press release are included below. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measures.

GAAP to Non-GAAP Financial Measures Reconciliations

The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands, unaudited):


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023

Reconciliation of revenue to bookings:
Revenue	$	988,183	$	749,939	$	3,601,979	$	2,799,274
Add (deduct):
Change in deferred revenue	381,777		382,196		792,434		742,308
Other	(8,319)		(5,313)		(25,317)		(20,802)
Bookings	$	1,361,641	$	1,126,822	$	4,369,096	$	3,520,780


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023

Reconciliation of consolidated net loss to Adjusted EBITDA:
Consolidated net loss	$	(221,052)	$	(325,340)	$	(940,614)	$	(1,158,937)
Add (deduct):
Interest income	(46,260)		(39,530)		(179,531)		(141,818)
Interest expense	10,331		10,298		41,184		40,707
Other (income)/expense, net	10,221		(898)		11,530		527
Provision for/(benefit from) income taxes	2,648		277		4,114		454
Depreciation and amortization expense(A)	51,311		54,531		226,437		208,142
Stock-based compensation expense	258,236		250,679		1,015,794		867,967
RTO severance charge(B)	173		5,228		1,274		5,228
Other non-cash charges(C)	—		—		—		6,988
Adjusted EBITDA	$	65,608	$	(44,755)	$	180,188	$	(170,742)

(A)For the twelve months ended December 31, 2024, includes a one-time charge of $17.9 million related to the re-assessment of the estimated useful life of certain software licenses, resulting in the acceleration of their remaining depreciation within infrastructure and trust & safety expenses in the third quarter of 2024.

(B)Relates to cash severance costs associated with the Company’s return-to-office (“RTO”) plan announced in October 2023, which required a subset of the Company’s remote employees to begin working from the San Mateo headquarters for three days a week, beginning in the summer of 2024.

(C)Includes impairment expenses related to certain operating lease right-of-use assets and related property and equipment.


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023

Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow:
Net cash and cash equivalents provided by operating activities	$	184,491	$	143,305	$	822,316	$	458,180
Deduct:
Acquisition of property and equipment	(63,860)		(65,197)		(179,646)		(320,667)
Purchase of intangible assets	—		—		(1,370)		(13,500)
Free cash flow	$	120,631	$	78,108	$	641,300	$	124,013

Forward Looking Guidance: GAAP to Non-GAAP Financial Measures Reconciliations


	Guidance
	Three Months Ended March 31, 2025				Twelve Months Ended December 31, 2025
	Low		High		Low		High

Reconciliation of revenue to bookings:
Revenue	$	990,000	$	1,015,000	$	4,245,000	$	4,345,000
Add (deduct):
Change in deferred revenue	140,000		140,000		975,000		975,000
Other	(5,000)		(5,000)		(20,000)		(20,000)
Bookings	$	1,125,000	$	1,150,000	$	5,200,000	$	5,300,000


	Guidance
	Three Months Ended March 31, 2025				Twelve Months Ended December 31, 2025
	Low		High		Low		High

Reconciliation of consolidated net loss to Adjusted EBITDA:
Consolidated net loss	$	(287,000)	$	(267,000)	$	(1,070,000)	$	(995,000)
Add (deduct):
Interest income	(40,000)		(40,000)		(160,000)		(160,000)
Interest expense	11,000		11,000		42,000		42,000

Provision for/(benefit from) income taxes	1,000		1,000		3,000		3,000
Depreciation and amortization expense	55,000		55,000		225,000		225,000
Stock-based compensation expense	280,000		280,000		1,150,000		1,150,000
Adjusted EBITDA	$	20,000	$	40,000	$	190,000	$	265,000


	Guidance
	Three Months Ended March 31, 2025				Twelve Months Ended December 31, 2025
	Low		High			Low		High

Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow:
Net cash and cash equivalents provided by operating activities	$	360,000	$	380,000		$	1,050,000	$	1,110,000
Deduct:
Acquisition of property and equipment	(20,000)		(20,000)			(250,000)		(250,000)

Free cash flow	$	340,000	$	360,000		$	800,000	$	860,000

About Roblox

Roblox is an immersive gaming and creation platform that offers people millions of ways to be together, inviting its community to explore, create and share endless unique experiences. Our vision is to reimagine the way people come together– in a world that's safe, civil, and optimistic. To achieve this vision, we are building an innovative company that, together with the Roblox community, has the ability to strengthen our social fabric and support economic growth for people around the world. For more about Roblox, please visit corp.roblox.com.

CONTACTS

Stefanie Notaney

Roblox Corporate Communications

press@roblox.com

Source: Roblox Corporation

Exhibit 99.2

To Our Shareholders: Opening Commentary Our vision is to reimagine how people come together. We are building a 3D technology platform that supports communication and co-experience. We believe our platform will allow us to connect one billion people with safety and civility. We see a fundamental shift occurring in the gaming ecosystem, supported by 3D streaming technology. Our platform takes advantage of this shift by supporting instant immersion into 3D worlds. We support millions of experiences, authored by developers who publish once to our cloud and instantly and automatically go live on many platforms, in multiple languages around the world. Our cloud natively supports 3D simulation, and will ultimately supply AI generation as an integral part of the gaming experience. We have a plan to expand the functionality and economics of our platform to support 10% of the $1801 billion global gaming content market on Roblox. Today our share of that market is approximately 2.4%, and we are growing faster than the gaming industry as a whole. If successful in this plan, we believe we can continue to grow our top line by 20% year-over-year for the next several years. In order to achieve our recent financial results, we have generally invested aggressively in engineering excellence and efficiency, while driving productivity in our infrastructure and trust & safety (“IT&Sˮ) systems. At the same time, we have rapidly grown the payouts to our creator community while carefully managing our capital expenditures. As we discuss later, many of these trends accelerated in 2024, producing strong financial results. While we still have to innovate and execute on many initiatives, we believe we are in a solid financial position where we can continue to produce operating leverage while making long-term investments in hiring world class talent, and in expanding and improving our IT&S systems. At the same time, we believe we can begin to increase the economics to our developers, thereby further investing in the increasingly diverse and high quality content ecosystem on our platform. While doing all of this, we believe we can continue to drive top line growth at 20% while increasing the rate of cash flow production in excess of growth in bookings. We are excited to execute on the opportunities in front of us. 1 Source: Newzooʼs Global Games Market Report 2024. 1

Summary of Results In the remainder of this letter, we will cover our operating results for Q4 2024 and FY 2024. We will also provide guidance on key metrics for Q1 2025 and FY 2025. We delivered Q4 2024 results at or above the guidance we provided on our Q3 2024 earnings call. In Q4, we also continued to exceed the long term financial goals we communicated at our investor day in November 2023. We grew revenue and bookings in Q4 2024 by 32% and 21%, respectively, year-over-year, in excess of our 20% goal; margins improved by over 500 basis points year-over-year in Q4, above the 100300 bps target; net cash and cash equivalents provided by operating activities grew by 29% year-over-year, and free cash flow in Q4 grew 54% year-over-year. We had difficult growth comparisons in Q4 2024 as we lapped our Playstation launch and a significant Xbox product update - both of which occurred in October 2023 - and a large prepaid card purchase in November 2023. By December 2024, however, with a strong lineup of content and major updates from some of our top monetizing experiences, bookings growth for the month was 25% year-over-year and 27% on a constant currency basis, taking into account foreign exchange impacts as the US dollar strengthened against many major currencies. The momentum we saw in late December has continued in January and is reflected in the bookings guidance we will provide for Q1 2025 later in this note. For FY 2024, revenue and bookings grew by 29% and 24%, respectively, year-over-year; margins improved by over 620 bps; net cash and cash equivalents provided by operating activities grew by 79% to $822.3 million from $458.2 million in FY 2023; and free cash flow grew by 417% to $641.3 million from $124.0 million in FY 2023. Over the course of the year, our fully diluted share count increased 2.3%. We believe several key drivers enabled us to accelerate growth in 2024 over the prior year and to deliver strong top line growth in Q4 2024. These are trends that we have discussed previously and that we believe provide us with momentum in 2025 and for several years to come. By succeeding in these initiatives, we believe we can achieve our goal of having 10% of the global gaming content market flowing through Roblox: ● Trust & Safety: In 2024, we released over 40 new safety products and policies to our users including updates to our parental controls for our youngest users to give parents and caregivers more control and clarity. For example, users under the age of 13 can no longer communicate through platform chat and parents can now monitor their children's activities 2

on Roblox from their own devices. We plan to launch many more new safety products and policies in 2025. ● Performance and quality: We provide our developer community with a vertically integrated stack including developer tooling, game engine, infrastructure, and content moderation and safety. Over the past year, key investments enabled us to improve app launch times, reduce crash rates, and increase frame rates and overall app quality. We expect to continue to invest in our technology to unlock higher content depth and expand game genres. For instance, we plan to improve graphical fidelity, memory performance, and our matchmaking systems to better support competitive gameplay. Our infrastructure is more reliable and handles more concurrent users than ever before. In 2024, we hit all-time highs in the usage of our platform while maintaining high reliability. ● Genre expansion: When we improve our technology and infrastructure, developers can build better, more compelling content that is more appealing and engaging to a wider audience. AI-powered creation tools in Studio today allow conversational creation and composition of 3D worlds, including objects, behaviors, sounds, and more. This opens up access to new genres which in turn grows the size of our served market and helps us to continue growing our user base. We currently have approximately 2.4% of the $1802 billion global gaming industry content revenues flowing through Roblox. We believe we can move this to 10% over the next few years. Key genres that drove growth in 2024, and that we expect to support growth on our way to the 10% goal, include RPGs, sports and racing, and action. ● Search and Discovery: Throughout 2024, enhancements to our AI-powered discovery algorithms improved personalization, showcasing more relevant experiences and items to users. This was a major factor enabling us to drive improved bookings growth starting in April 2024. In addition to supporting our top creators, we are also distributing impressions among more experiences to promote overall ecosystem health and the long-tail of content creators where new experiences can be discovered and prosper while existing popular experiences continue to grow. ● Economy, Ads and Brands: During 2024, we instituted dynamic pricing in the avatar marketplace, which boosted monetization. In 2024, we also offered dynamic price optimization to our creators so they could improve their game economics. Toward the end of 2024 we began to offer more Robux for users buying on lower cost platforms which we believe will help to improve the percentage of economics we share with the developer community. Overall, in comparison to fiscal year 2023, all of our key monetization metrics increased in fiscal year 2024 - bookings per DAU; bookings per hour engaged; and bookings per monthly unique Payer. In 2025, we plan to focus on expanding creator 2 Source: Newzooʼs Global Games Market Report 2024. 3

earnings through paid access experiences, localized Robux pricing, and continued price optimization. We continued to expand our brand partnerships throughout 2024. We have seen significant momentum with brands activating on Roblox. ● Live Ops: In response to community feedback, we reintroduced platform-wide events in Q1 2024. We started with The Hunt in March and continued our sequence of events with The Classic, The Games, The Haunt, and Winter Spotlight. We believe these events accelerate content momentum and further inspire creators to update their experiences while inviting influencers to create Roblox video content which leads to user engagement and reactivations. Following the success of these events, we intend to continue investing more in Live Ops events in 2025. ● Artificial Intelligence: We continue to implement artificial intelligence (“AIˮ) across our stack including for safety, discovery, and content creation. In 2024, we made progress improving our safety systems leading with quality and getting the added benefit of lower cost-to-serve. We open sourced our voice safety model on Hugging Face and it has been downloaded over 20,000 times. We are pleased that more AI models are following our lead by going open sourced and we will continue to push the gaming industry in this direction. Within search and discovery, we continue to tune our objective function towards long-term retention and are measuring many signals that contribute to that key objective. We have multiple AI-powered creation tools live, and are seeing evidence of increases in productivity for early adopters and more engaged creators. By releasing these models to our large creator ecosystem, we are able to get rapid feedback, allowing us to tune and adapt them to extend our technology further with more data. In 2024 we launched Roblox Assistant, built on our expanding dataset, which allows conversational creation of 3D objects, behaviors, and more. We also launched Avatar Autosetup, which allows creators to bring any 3D human mesh to life on the platform, with full automatic rigging, skinning, and caging. We expect to see much more activity on these fronts in 2025, including developments to our 3D Foundational Model. 4

Financial Analysis In Q4 2024 and FY 2024, our key financial and operating metrics grew quickly and were at or above the guidance we delivered on our Q3 2024 earnings call. ● Revenue in Q4 2024 was $988.2 million, an increase of 32% over Q4 2023, and was ahead of our guidance range of $935 million - $960 million. For FY 2024, revenue was $3,602.0 million, 29% higher than revenue in FY 2023 and above our guidance range of $3,549 - $3,574 million. ● Bookings in Q4 2024 were $1,361.6 million, an increase of 21% year-over-year, and better than our guidance range of $1,336 million - $1,361 million. For the full year, bookings were $4,369.1 million, up 24% over bookings in FY 2023 and above our guidance range of $4,343 million - $4,368 million. ● In Q4 2024, top line growth was driven by growth in Monthly Unique Payers MUPs which reached 18.9 million in Q4 2024, an increase of 19% over Q4 2023, as well as a 1.4% increase in Average Bookings per Monthly Unique Payer (“ABPMUPˮ) which increased to $23.97 from $23.65 in Q4 2023. In Q4 2024, we continued to manage our costs and capital expenditures while investing strategically. ● Developer exchange fees were $280.6 million, a record quarterly amount and up 27% over Q4 2023. Developer exchange fees were 28% of revenue and 21% of bookings in Q4 2024 compared to 30% of revenue and 20% of bookings in Q4 2023. ● Personnel costs, exclusive of stock-based compensation expense, were $200.2 million, up less than 1% over Q4 2023. These costs amounted to 20% of revenue and 15% of bookings in Q4 2024 compared to 26% of revenue and 18% of bookings in Q4 2023. ● Certain infrastructure and trust & safety expenses grew to $126.6 million, 2% higher versus Q4 2023. These costs amounted to 13% of revenue and 9% of bookings in Q4 2024 compared to 17% of revenue and 11% of bookings in Q4 2023. ● Consolidated net loss in Q4 2024 was $221.1 million, better than our guidance range of $303 million - $283 million and an improvement over consolidated net loss in Q4 2023 of $325.3 million. Consolidated net loss for FY 2024 was $940.6 million, better than our guidance range of $1,023 million - $1,003 million, and an improvement over consolidated net loss in FY 2023 of $1,159 million. ● Adjusted EBITDA in Q4 2024 was $65.6 million, above our guidance range of $10 million - $30 million. Adjusted EBITDA excludes the adjustments for an increase in deferred revenue of $381.8 million and an increase in deferred cost of revenue of $65.2 million, or a total 5

change in deferrals of $316.5 million. Adjusted EBITDA in FY 2024 was $180.2 million, above our guidance range of $125 million - $145 million. Adjusted EBITDA excludes the adjustments for an increase in deferred revenue of $792.4 million and an increase in deferred cost of revenue of $164.9 million, or a total change in deferrals of $627.5 million. ● Net cash and cash equivalents provided by operating activities in Q4 2024 was $184.5 million, up 29% year-over-year and at the high end of our guidance range of $170 million - $185 million. In FY 2024, net cash and cash equivalents provided by operating activities was $822.3 million, at the high end of our guidance range of $808 million - $823 million, and an increase of 79% over FY 2023. ● Free cash flow in Q4 2024 was $120.6 million, up 54% over free cash flow in Q4 2023 and above our guidance range of $100 million - $115 million. Free cash flow in FY 2024 was $641.3 million, above our guidance range of $621 million - $636 million, and an increase of 417% over FY 2023 when free cash flow was $124.0 million. ● Our fully diluted share count, consisting primarily of shares of Class A and Class B common stock issued and outstanding, unvested RSUs outstanding, and stock options outstanding, was 731.2 million as of December 31, 2024, an increase of 2.3% over December 31, 2023. 6

Liquidity As of December 31, 2024, the balances of our liquidity components were: ● Cash and cash equivalents: $711.7 million ● Short-term investments: $1,697.9 million ● Long-term investments: $1,610.2 million ● Carrying amount of the senior notes due 2030 $991.7 million) and the portion of the non-eliminated carrying amount of notes due 2026 issued by the Companyʼs fully consolidated joint venture $14.7 million), or $1,006.4 million3 in total. ● Cash and cash equivalents plus short-term and long-term investments totaled $4,019.8 million in Q4 2024, up 24% from $3,236.7 million in Q4 2023 ● Net liquidity (cash, cash equivalents and investments less debt) was $3,013.4 million For additional GAAP results, see our Q4 2024 earnings release and supplemental materials accessible at ir.roblox.com and our Annual Report on Form 10K for the year ended December 31, 2024, when available. 3 The principal amounts of the 2030 Notes and 2026 Notes were $1.0 billion and $14.7 million, respectively. 7

Guidance Our bookings guidance for fiscal 2025 is $5,200 million - $5,300 million, or year-over-year growth of 1921%. We expect growth in the first half of 2025 to exceed growth in the second half. In particular, we will be lapping very strong results in Q3 2024 when overall bookings grew by 34% year-over-year, and non-console bookings grew by 28%. With that said, we are working diligently on a number of initiatives that we believe can accelerate bookings growth in the back half of 2025. We believe we can drive margin improvements while actually sharing even more of the economics with our developer community (as we did in Q4 2024. Our Q1 2025 bookings guidance recognizes that the broad-based strength from December 2024 and January 2025 generally persists, while recognizing that we are comparing against leap day last year and the fact that the Easter holiday was in Q1 in 2024, but will be in Q2 in 2025. Thus, within Q1, we expect stronger growth earlier in the quarter. We also continue to operate in a tougher foreign exchange environment than last year. Management guidance is as follows: For Q1 2025 ● Revenue of $990 million - $1,015 million, or year-over-year growth of 2427%.4 ● Bookings between $1,125 million - $1,150 million, or year-over-year growth of 2224%. ● Consolidated net loss between $287 million - $267 million. ● Adjusted EBITDA between $20 million - $40 million, which includes: - Increase in deferred revenue of $140 million. - Increase in deferred cost of revenue of $20 million. - The total of these changes in deferrals of $120 million. ● Net cash and cash equivalents provided by operating activities between $360 million - $380 million, a year-over-year increase of 5159%. ● Capital expenditures of $20 million, or a year-over-year decrease of 57%. ● Free cash flow between $340 million - $360 million, or year-over-year increase of 7888%. 4 Our revenue guidance assumes that there are no material changes in estimates used in our revenue recognition, such as the estimated average lifetime of a paying user. 8

For fiscal 2025 ● Revenue of $4,245 million - $4,345 million, or year-over-year growth of 1821%.5 ● Bookings of $5,200 million - $5,300 million, or year-over-year growth of 1921%. ● Consolidated net loss between $1,070 million - $995 million. ● Adjusted EBITDA between $190 million - $265 million, which includes: - Increase in deferred revenue of $975 million. - Increase in deferred cost of revenue of $150 million. - The total of these changes in deferrals of $825 million. ● Net cash and cash equivalents provided by operating activities between $1,050 million - $1,110 million, a year-over-year increase of 2835%. ● Capital expenditures of $250 million, or a year-over-year increase of 39%. ● Free cash flow between $800 million - $860 million, or year-over-year increase of 2534%. 5 Our revenue guidance assumes that there are no material changes in estimates used in our revenue recognition, such as the estimated average lifetime of a paying user. 9

EARNINGS Q&A SESSION We will host a live Q&A session to answer questions regarding our fourth quarter and full year 2024 results on Thursday, February 6, 2025 at 530 a.m. Pacific Time/830 a.m. Eastern Time. The live webcast and Q&A session will be open to the public at ir.roblox.com and we invite you to join us and to visit our investor relations website at ir.roblox.com to review supplemental information. 10

Forward-Looking Statements This letter and the live webcast and Q&A session which will be held at 530 a.m. Pacific Time/830 a.m. Eastern Time on Thursday, February 6, 2025 contain “forward-looking statementsˮ within the meaning of the “safe harborˮ provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our vision to connect one billion global DAUs, our vision to reach 10% of the global gaming content market, our efforts to improve the Roblox Platform, our investments to pursue the highest standards of trust and safety on our platform, our immersive advertising efforts, including our ads manager and independent measurement partnerships, our efforts to provide a safe online environment for children, our efforts regarding content curation, and live operations, our efforts regarding real world commerce, the use of AI on our platform, our economy and product efforts related to creator earnings and platform monetization, our sponsored experiences, branding and new partnerships and our roadmap with respect to each, our business, product, strategy and user growth, our investment strategy, including our opportunities for and expectations of improvements in financial and operating metrics, including operating leverage, margin, free cash flow, operating expenses and capital expenditures, our expectation of successfully executing such strategies and plans, disclosures regarding the seasonality of our business and future growth rates, benefits from agreements with third-party cloud providers, disclosures about our infrastructure efficiency initiatives, changes to our estimated average lifetime of a paying user and the resulting effect on revenue, cost of revenue, deferred revenue and deferred cost of revenue, our expectations of future net losses and net cash and cash equivalents provided by operating activities, statements by our Chief Executive Officer and Chief Financial Officer, and our outlook and guidance for the first quarter and full year 2025, and future periods. These forward-looking statements are made as of the date they were first issued and were based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “expect,ˮ “vision,ˮ “envision,ˮ “evolving,ˮ “drive,ˮ “anticipate,ˮ “intend,ˮ “maintain,ˮ “should,ˮ “believe,ˮ “continue,ˮ “plan,ˮ “goal,ˮ “opportunity,ˮ “estimate,ˮ “predict,ˮ “may,ˮ “will,ˮ “could,ˮ and “would,ˮ and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SECˮ), including our annual reports on Form 10K, our quarterly reports on Form 10Q and other filings and reports we make with the SEC from time to time. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs, including the repayment of our senior notes; the demand for our platform in general; our ability to retain and increase our number of users, developers, and creators; the impact of inflation and global economic conditions on our operations; the impact of changing legal and regulatory requirements on our business, including the use of verified parental consent; our ability to develop enhancements to our platform, and bring them to market in a timely manner; our ability to develop and protect our brand and build new partnerships; any misuse of user data or other undesirable activity by third parties on our platform; our ability to maintain the security and availability of our platform; our ability to detect and minimize unauthorized use of our platform; and the impact of AI on our platform, users, creators, and developers. Additional information regarding 11

these and other risks and uncertainties that could cause actual results to differ materially from our expectations is included in the reports we have filed or will file with the SEC, including our annual reports on Form 10K and our quarterly reports on Form 10Q. The forward-looking statements included in this letter represent our views as of the date of this letter. We anticipate that subsequent events and developments will cause our views to change. However, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this letter. Special Note Regarding Operating Metrics Additional information regarding our core financial and operating metrics disclosed above is included in the reports we have filed or will file with the SEC, including our annual reports on Form 10K and our quarterly reports on Form 10Q. We encourage investors and others to review these reports in their entirety. 12

Non-GAAP Financial Measures This letter contains the non-GAAP financial measure bookings, Adjusted EBITDA and free cash flow. We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance. Bookings is defined as revenue plus the change in deferred revenue during the period and other non-cash adjustments. Substantially all of our bookings are generated from sales of virtual currency, which can ultimately be converted to virtual items on the Roblox Platform. Sales of virtual currency reflected as bookings include one-time purchases and monthly subscriptions purchased via payment processors or through prepaid cards. Bookings also include an insignificant amount from advertising and licensing arrangements. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Adjusted EBITDA represents our GAAP consolidated net loss, excluding interest income, interest expense, other income/(expense), provision for/(benefit from) income taxes, depreciation and amortization expense, stock-based compensation expense, and certain other nonrecurring adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted EBITDA is useful to investors and management in understanding our ongoing operations and ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. Free cash flow represents the net cash and cash equivalents provided by operating activities less purchases of property and equipment and intangible assets acquired through asset acquisitions. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property and equipment and intangible assets acquired through asset acquisitions, can be used for strategic initiatives. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP. Reconciliation tables of the most comparable GAAP financial measure to the non-GAAP financial measure used in this letter are included at the end of this letter. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measures. 13

GAAP to Non-GAAP Reconciliations The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in thousands, unaudited): Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Reconciliation of revenue to bookings: Revenue $ 988,183 $ 749,939 $ 3,601,979 $ 2,799,274 Add (deduct): Change in deferred revenue 381,777 382,196 792,434 742,308 Other 8,319 5,313 25,317 20,802 Bookings $ 1,361,641 $ 1,126,822 $ 4,369,096 $ 3,520,780 The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands, unaudited): Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Reconciliation of consolidated net loss to Adjusted EBITDA Consolidated net loss $ 221,052 $ 325,340 $ 940,614 $ 1,158,937 Add (deduct): Interest income 46,260 39,530 179,531 141,818 Interest expense 10,331 10,298 41,184 40,707 Other (income)/expense, net 10,221 898 11,530 527 Provision for/(benefit from) income taxes 2,648 277 4,114 454 Depreciation and amortization expenseA 51,311 54,531 226,437 208,142 Stock-based compensation expense 258,236 250,679 1,015,794 867,967 RTO severance chargeB 173 5,228 1,274 5,228 Other non-cash chargesC — — — 6,988 Adjusted EBITDA $ 65,608 $ 44,755 $ 180,188 $ 170,742 A For the twelve months ended December 31, 2024, includes a one-time charge of $17.9 million related to the re-assessment of the estimated useful life of certain software licenses, resulting in the acceleration of their remaining depreciation within infrastructure and trust & safety expenses in the third quarter of 2024. B Relates to cash severance costs associated with the Companyʼs return-to-office (“RTOˮ) plan announced in October 2023, which required a subset of the Companyʼs remote employees to begin working from the San Mateo headquarters for three days a week, beginning in the summer of 2024. C Includes impairment expenses related to certain operating lease right-of-use assets and related property and equipment. 14

The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands, unaudited): Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow: Net cash and cash equivalents provided by operating activities $ 184,491 $ 143,305 $ 822,316 $ 458,180 Deduct: Acquisition of property and equipment 63,860 65,197 179,646 320,667 Purchases of intangible assets — — 1,370 13,500 Free cash flow $ 120,631 $ 78,108 $ 641,300 $ 124,013 15

Forward Looking Guidance6: GAAP to Non-GAAP Financial Measures Reconciliations The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to Bookings, for each of the periods presented (in thousands): Guidance Three Months Ended Twelve Months Ended March 31, 2025 December 31, 2025 Low High Low High Reconciliation of revenue to Bookings: Revenue $ 990,000 $ 1,015,000 $ 4,245,000 $ 4,345,000 Add (deduct): Change in deferred revenue 140,000 140,000 975,000 975,000 Other 5,000 5,000 20,000 20,000 Bookings $ 1,125,000 $ 1,150,000 $ 5,200,000 $ 5,300,000 6 Our revenue guidance assumes that there are no material changes in estimates used in our revenue recognition, such as the estimated average lifetime of a paying user. 16

The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in thousands): Guidance Three Months Ended Twelve Months Ended March 31, 2025 December 31, 2025 Low High Low High Reconciliation of consolidated net loss to Adjusted EBITDA Consolidated Net Loss $ 287,000 $ 267,000 $ 1,070,000 $ 995,000 Add (deduct): Interest income 40,000 40,000 160,000 160,000 Interest expense 11,000 11,000 42,000 42,000 Provision for/(benefit from) income taxes 1,000 1,000 3,000 3,000 Depreciation and amortization expense 55,000 55,000 225,000 225,000 Stock-based compensation expense 280,000 280,000 1,150,000 1,150,000 Adjusted EBITDA $ 20,000 $ 40,000 $ 190,000 $ 265,000 The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in thousands): Guidance Three Months Ended Twelve Months Ended March 31, 2025 December 31, 2025 Low High Low High Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow: Net cash and cash equivalents provided by operating activities $ 360,000 $ 380,000 $ 1,050,000 $ 1,110,000 Deduct: Acquisition of property and equipment 20,000 20,000 250,000 250,000 Free cash flow $ 340,000 $ 360,000 $ 800,000 $ 860,000 17

Cover	Feb. 06, 2025
Cover [Abstract]
Document Type	8-K
Document Period End Date	Feb. 06, 2025
Entity Registrant Name	Roblox Corporation
Entity Incorporation, State or Country Code	DE
Entity File Number	001-39763
Entity Tax Identification Number	20-0991664
Entity Address, Address Line One	3150 South Delaware Street
Entity Address, City or Town	San Mateo
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94403
City Area Code	888
Local Phone Number	858-2569
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, $0.0001 par value
Trading Symbol	RBLX
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001315098

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RBLX Roblox Corporation