Roblox Corporation reported significant financial developments in its latest 10-Q filing for the third quarter of 2024, highlighting a robust increase in revenue and a reduction in net losses compared to the previous fiscal period. For the three months ended September 30, 2024, Roblox generated revenue of $918.9 million, a 29% increase from $713.2 million in Q3 2023. For the nine months ended September 30, 2024, revenue reached $2.6 billion, up 28% from $2.05 billion in the same period last year. This growth is attributed to higher amortization of prior period deferred revenue and an increase in bookings, with the average number of daily unique paying users rising from approximately 870,000 in Q3 2023 to about 1.14 million in Q3 2024.
Despite the revenue growth, total costs and expenses also increased, totaling $1.2 billion for Q3 2024, compared to $1.01 billion in Q3 2023. The cost of revenue rose by $41.4 million, primarily due to increased payment processing fees. The consolidated net loss for Q3 2024 was $240.4 million, a decrease from a loss of $278.8 million in Q3 2023. For the nine-month period, the net loss was $719.6 million, down from $833.6 million in the prior year.
Roblox's cash and cash equivalents decreased to $602.6 million as of September 30, 2024, from $678.5 million at the end of 2023. However, total assets increased to $6.7 billion, up from $6.2 billion, and total stockholders' equity rose to $178.5 million, compared to $68.6 million at the end of 2023.
Strategically, Roblox made a notable acquisition of Speechly, Inc. for $10.1 million, which is expected to enhance its platform capabilities. The company also announced a change in the estimated average lifetime of a paying user, decreasing from 28 months to 27 months, which impacted revenue recognition positively by $26.4 million for Q3 2024.
Roblox continues to invest heavily in its platform, focusing on enhancing user engagement through high-fidelity avatars and AI tools. The company is also adapting to regulatory changes, particularly those affecting child safety and online transactions, which may influence user engagement and revenue in the near term.
Overall, while Roblox faces challenges related to rising operational costs and regulatory compliance, its financial performance shows promising growth in revenue and a strategic focus on enhancing its platform and user experience.
About Roblox Corp
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