Roblox Corporation Q2 FY2025 earnings call

David Baszucki highlighted a focus on performance, quality, discovery, economy, and live ops over 18 months, with viral hits and growth in Q2. Notable viral hits include 5 experiences with over 10M DAUs in July. Investments in platform performance, discovery, and economy were mentioned. Safety platform innovations like Trusted Connections and RoGuard 1.0 were noted. IP License Manager and Catalog launched with partners. Rewarded Video with Google is in beta. Cube 3D model improved with over 1M 3D models generated. Genre expansion efforts in RPG, sports, etc., saw 66% spending growth. Manuel Bronstein leaving Roblox was mentioned.

In Q2 2025, Roblox had revenue of $1.1 billion, up 21% year-on-year. Bookings were $1.4 billion, up 51% year-on-year. U.S. and Canada saw bookings growth of 43%, APAC grew 75% with regions like Japan over 50%, India over 90%, etc. DAUs were 111.8 million, up 41% YOY, with U.S./Canada up 21% and APAC up 76%. Hours engaged were 27.4 billion hours, up 58% YOY, with Japan up 61% and Indonesia 170% YOY. Monthly unique payers were 23.4 million, up 42% (new record), and DevEx was $316.4 million, up 52% YOY (new record).

Roblox raised full year 2025 revenue guidance to 22%-25% YOY and bookings guidance to 34%-37% YOY. Guidance is conservative in Q3 and Q4 due to comps and uncertainty in Q4 bookings capture.

Q: Color on platform capacity to absorb demand surge?

A: David Baszucki said the platform uses a mix of bare metal infrastructure and cloud providers to handle load, spinning up cloud servers for peak times without constant CapEx.

Q: Ecosystem implications for professional developers?

A: David Baszucki noted growth from non-top 10 experiences and ongoing tech pipeline for genre expansion.

Q: Attribution of viral hits?

A: David Baszucki said viral hits are due to multiple factors like discovery, infrastructure, and studio tooling working together.

Q: Monetization building blocks?

A: David Baszucki and Naveen Chopra discussed a range of monetization vehicles, Rewarded Video with Google, and future of subscription aspects.

Q: Creator Rewards and discovery?

A: David Baszucki said Creator Rewards align with driving organic traffic to the platform, and discovery is focused on long-term platform health.

Q: New customer acquisition from Grow a Garden?

A: David Baszucki and Naveen Chopra said Grow a Garden brings new users, with social nature and live ops contributing to sustainability.

Q: Algorithmic changes for viral hits?

A: David Baszucki said the recommendation system is based on long-term value estimation, making it repeatable.