Roblox earnings: CEO talks gaming, AI, and user growth

Software Stock Valuation Reset [0:00]

• Recent AI developments from Google and Anthropic have caused a significant reset in software stock valuations.
• The core business models of software companies, both large and small, are perceived to be under attack.
• Despite the challenging market, positive fundamental developments at a software company like Roblox are being recognized.

  It's not like big software companies are involved in AI.

Roblox's Strong Financial Performance and User Growth [0:29]

• Roblox beat analyst estimates for bookings, users, and bottom-line performance in the recent quarter.
• The company forecasts sales to be up 23% to 29% and bookings up 22% to 26%.
• Q4 bookings reached $2.2 billion, representing 55% year-on-year growth.
• Daily Active Users (DAUs) increased by 69% year-on-year, with significant growth in international markets like Japan (up 160%).

  2025 was a banner year. We're targeting 10% of all of the global gaming content running on Roblox.

Online Safety and Age Verification [01:27]

• Roblox has taken a lead in online safety and civility with its "gold standard" approach.
• The platform is rolling out age checks for all users to improve communication safety.
• The age-checked segment of users (18 and up) is growing at over 50% year-on-year, indicating strong potential.
• This initiative aims to connect people of similar ages and enhance trusted connections within the platform.

  And as part of it is we started rolling out age check for everyone on our platform to use communication.

Expanding to Older Demographics and Genre Diversification [02:01]

• Roblox is re-emphasizing its appeal to the under-18 segment while also capitalizing on growth in the over-18 demographic.
• Innovative gameplay experiences created by the community, such as "Dress to Impress" and "Grow a Garden," demonstrate new gameplay types.
• With 50% growth in the over-18 segment and a strong creator community, genre expansion is expected in areas like RPGs and sports games, which tend to monetize better.
• The company's mission is to connect a billion people daily with optimism and civility, supported by a robust technology stack.

  We with 50% growth in over 18 and the amazing creator community we have the amazing tooling we expect to see more and more um genre expansion in genres like RPGs and sports games.

Market Opportunity for Older Gamers [03:07]

• Older consumers (25-35) are finding time for games, leveraging the massive global gaming market estimated at $200 billion annually ($50 billion in the US).
• A significant portion of the US gaming market is already composed of individuals aged 18 and up.
• Roblox experiences are perceived as social and feature innovative gameplay, with increasing incorporation of AI for new experiences.

  So, just like with younger players, the market is really already there.

Addressing Scrutiny on Safety [04:05]

• Roblox acknowledges the challenge of implementing safety measures like age verification without causing friction.
• The company is making significant advances in connecting users of similar ages and optimizing chat within games.
• Roblox is committed to leading the industry in online safety and civility, aiming to be recognized as the "gold standard."

  We're we're optimistic that our teams are going to come out of this better than we were before.

AI as an Accelerator for Creators [06:09]

• Roblox is optimistic that AI will accelerate its creator community, leading to more innovative, high-quality, and diverse content.
• The company does not foresee AI replacing creators but rather empowering them, which is reflected in the projected increase in creator earnings.
• In 2025, creators on Roblox earned over $1.5 billion, a figure expected to rise with AI integration.

  We we don't see creators being replaced. We see them being accelerated.

Roblox's Unique Multiplayer Focus in the AI Era [07:04]

• While many companies are focused on single-player video technologies, Roblox emphasizes its core as a communication and connection platform centered on multiplayer experiences.
• The company runs over 400 AI models that power various aspects of its platform, including safety, search, translation, and creation.
• Roblox believes AI will expand the definition of gaming, communication, and content, and its technical strength lies in coordinating thousands of players in real-time, augmented by AI.

  Some of the advances we're seeing are are very exciting and important, but they are they are not multiplayer technologies.

In-House Cloud Infrastructure for Efficiency [08:48]

• Roblox is not spending Amazon-like capital but is investing significantly in its own infrastructure.
• The company has built its own cloud, utilizing tens of thousands of CPUs and GPUs, enabling cost-efficient operations compared to relying on third-party providers like Amazon, Google, or Microsoft.
• This self-built infrastructure is critical for operating at a high-performance, low-cost, and efficient level.

  So, we we think running an efficient cloud is a big part of our business and we're building our own cloud which is helping keep our costs in an efficient mode.