At a 26% year-on-year increase, Roblox generated $2.8 billion in revenue in 2023. And as per the platform’s latest financial report, its engagement time rose by 22% too, reaching a giant 60 billion hours.
With a strong fourth quarter rounding off the successful year, it appears Roblox has sailed above the tumultuous tide of 2023, which sank many a game maker’s earnings.
And following another successful year, Roblox has reaffirmed its vision to reach one billion daily active users.
Plenty to celebrate
In Q4 alone Roblox generated $749.9 million at a year-on-year increase of 30%, above the average for its quarters last year and almost $100 million more than its Q1 result of $653.5 million. And in net cash from operating activities, Roblox reaped $143.3 million, up 20% year-on-year.
The successful quarter mirrors its userbase, up 22% to 71.5 million people every day on average. Unique players per month came in at 15.9 million, an 18% rise year-on-year. Players spent 15.5 billion hours engaged in Roblox’s platform in Q4 – yet another rise, in this case by 21%.
The impressive incline is just one part of a wider paradigm in Roblox, with all those metrics also up over the year as a whole. Bookings were up to $3.5 billion, revenue grew by 26% to $2.8 billion, net cash provided by operating activities increased to $458 million; the covenant adjusted EBITDA2 also rose by 21% to $431.7 million.
A less positive figure to rise, however, was Roblox’s net loss, up from $934 million in 2022 to $1.15 billion in 2023. Even so, Roblox still landed safely in the green thanks to its gigantic revenue figure; minus the losses still theoretically leaves over $1.5 billion in profit, though Roblox neglected to include an official profit figure in its report.
“We ended the year with our strongest rate of quarterly bookings growth in two years and delivered our first quarter of $1 billion in bookings. We are scaling our operations efficiently, thereby improving our margins and cash flow, and we expect those trends to continue in 2024,” said Roblox chief financial officer Michael Guthrie.
The cherry on top
2023 was indeed a massive year for Roblox, with the platform having become increasingly synonymous with brand collaborations and finding more and more users to engage. Over the course of the year, 14.5 million unique players jumped into the platform monthly, while daily active users rose to 68.4 million. The hours spent on the platform rose to an incredible 60 billion for the year, and average bookings per DAU maintained a hefty $51.50.
Looking forward, the company has stated its ambitions to make as much as $3.4 billion in revenue in 2024.
“We finished 2023 with another strong quarter of growth as we continue to drive innovation and new experiences across the Roblox platform. We enter 2024 with even more conviction of being able to achieve our long-term goal of attracting over one billion daily active users with optimism and civility,” said Roblox CEO David Baszucki.
“We continue to benefit from the strong network effects in content, social connection, and communication, as well as our investments in immersive experiences, advertising, and AI.”
On the AI side, Roblox has just this week launched a new chat translator, enabling players across 16 languages to seamlessly interact.
