Roblox Q3 Earnings Call Highlights

• RBLX
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Key Points

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• Strong engagement drove Q3 outperformance: Roblox reported 138 million daily active users, nearly 34 billion engagement hours, and bookings above the high end of guidance. Retention reached its highest level since 2021, while adult users grew rapidly and monetize at least 50% more than users under 18.

• AI is accelerating creation on the platform: AI-powered game development and asset uploads surged, with more than 80% of the top 100 games using AI in creation. Roblox plans a broader U.S. rollout of its Build tool in December and a global launch in 2027.

• Roblox is expanding distribution while increasing investment: Initiatives such as Roblox Everywhere and Universal Player aim to bring Roblox games and third-party titles to more platforms and app stores. However, the company expects fourth-quarter bookings to decline 10%–15% year over year as infrastructure and marketing spending rise.

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Roblox (NYSE:RBLX) said third-quarter bookings exceeded the high end of its guidance, supported by stronger retention and engagement, while outlining a broad set of artificial intelligence, distribution and infrastructure initiatives intended to expand its reach among adult users and game creators.

Co-founder and CEO David Baszucki said the company continues to pursue a long-term goal of capturing 10% of the global gaming market and connecting 1 billion daily active users. He said Roblox estimates that about 20% of U.S. gaming revenue among users under 18 is already generated on its platform, and the company is now focused on replicating that position among users 18 and older.

Engagement and retention reach multiyear highs

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Roblox reported 138 million daily active users in the third quarter, up 12% sequentially, and nearly 34 billion hours of engagement, up 17% from the prior quarter. Baszucki said seasonally adjusted platform retention reached its highest level since 2021.

The company said its daily active users and engagement hours have nearly doubled over the past three years compared with the third quarter of 2023. In the U.S., Roblox estimates that 30% of 13- to 17-year-olds use the platform daily, with more than 80% of that cohort having completed age checks.

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