Roblox Corporation - Ordinary Shares - Class A

Q2 headline results (mixed: growth but soft monetization): - Revenue: $1.5B (+36% YoY); Bookings: $1.6B (+8% YoY) — bookings growth was at the low end of guidance and below internal goals. - Scale/engagement: 123M DAUs (+10% YoY) and 29B hours (+5% YoY), with strong international growth (Japan DAUs +67%, India DAUs +64%; hours Japan +60%, India +160%). - Cash generation: Operating cash flow +$318M (+60% YoY); Free cash flow $294M (+66% YoY) — a key positive despite bookings softness.

Core challenge: monetization weakness driven by younger users + discovery changes (not a user-engagement collapse): - Bookings per hour (monetization) missed forecast, especially for under-13 cohorts. - Management attributes it to: - A mix shift away from high-monetizing “25 vintage viral games” toward new/evergreen experiences with lower hourly monetization. - Discovery/recommendation algorithm changes optimizing for long-term retention (more impressions for stickier games, fewer for short-term monetization). - An additional, smaller headwind: disabling sale of cross-experience game passes. - Important “good vs bad” nuance: they emphasize engagement/sign-ups/retention looked okay—the problem was primarily dollars per hour, not users churning.

Guidance / forecasts (near-term cautious): - Q3 bookings forecast: $1.58B to $1.65B, implying -14% to -18% YoY (sequential DAU may improve, but monetization weakness likely persists). - Full-year outlook: no revised full-year guidance given high variability and multiple ongoing platform/product changes (safety, discovery, and new initiatives like Build/Moments/Reality).