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Roblox First Quarter 2023 Financial Results Show The Metaverse Is Still Alive

First quarter revenue up 22% year-over-year at $655.3 million

Global online gaming platform Roblox which brings people together through shared experiences has released its first quarter 2023 financial and operational results.

The company’s financials show that the revenue for the quarter was $655.3 million, a 22% increase year-over-year and a 24% increase year-over-year on a constant currency basis.

Bookings for the quarter were $773.8 million, a 23% increase year-over-year and a 25% increase year-over-year on a constant currency basis while the net loss attributable to common stockholders was $268.3 million.

David Baszucki, founder and CEO of Roblox said, “Since inception, we have focused on building a technology platform that enables a large and growing community of creators to build amazing experiences. The momentum in our business demonstrates the success of our creator community as they bring their visions to life on Roblox, attracting an ever-growing global user base that spans all ages.”

The Roblox metaverse stands strong

Roblox’s net cash provided by operating activities was $173.8 million and while the average daily active users (DAUs) were 66.1 million, a 22% increase year-over-year which shows that despite the current setbacks and backlash facing the metaverse, it still has a decent number of users on Roblox.

In terms of hours engaged, the company saw a staggering 14.5 billion, which is a 23% increase year-over-year. The average bookings per DAU (ABPDAU) were $11.70, which was flat year-over-year and up 2% year-over-year on a constant currency basis.

“In Q1 2023 we delivered strong performance across our core operating and financial metrics,” said Michael Guthrie, chief financial officer of Roblox. “Now that we are generating high rates of year-over-year bookings growth, we can now moderate our rate of investment in headcount and infrastructure thereby generating operating leverage.

The CFO adds that the company expects to see more of its bookings processed through credit cards as well as prepaid cards, which should have a positive impact on margins.

Overall, Roblox’s first-quarter financial results showed strong growth in revenue, bookings, and DAUs. The rise of AI technology has many convinced that the metaverse is no longer a priority for Meta and other tech companies, but Roblox’s DAUs show that many people are still interested in a virtual world after all.

Written By

Isa Muhammad is a writer and video game journalist covering many aspects of entertainment media including the film industry. He's steadily writing his way to the sharp end of journalism and enjoys staying informed. If he's not reading, playing video games or catching up on his favourite TV series, then he's probably writing about them.

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