Q4 2021 Roblox Corp Earnings Call
Speaker 1: Mike Guthrie.
Speaker 1: Before we start, I want to remind everyone that yesterday after market closed, we published a shareholder letter and earnings results on our investor relations website at ir.roblox.com. On this call, we will make some brief opening remarks and reserve the rest of the time for your questions. For our webcast participants, please note the question icon at the bottom of your screen where you can type in your questions. We'll do our best to take as many as possible.
We published a shareholder letter and earnings results on our Investor Relations website at IR Dot roadblocks Dot com.
On this call we will make some brief opening remarks and reserve the rest of the time for your questions.
Webcast participants. Please note the question icon at the bottom of your screen, where you can type in your question, we will do our best to take as many as possible.
Speaker 1: On today's call, we may be making forward-looking statements, including but not limited to our expectations of our business, future financial results, and strategies.
On today's call, we may be making forward looking statements, including but not limited to our expectations of our business future financial results and strategy.
Speaker 1: Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in our forward-looking statements. And such risks are described in our risk factors included in our SEC filings, including our Form 10-2 files for the fiscal quarter ended September 30, 2021. You should not rely on our forward-looking statements as predictions of future events.
Forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in our forward looking statements and such risks are described in our risk factors, including included in our SEC filings, including our Form 10-Q filed for the first quarter ended for the.
Our fiscal quarter ended September 32021, you should not rely on our forward looking statements as predictions of future events, we disclaim any obligation to update any forward looking statements, except as required by law.
Speaker 1: We disclaim any obligation to update any forward-looking students, except as required by law.
Speaker 1: During this call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics for reported results can be found in our press release issued yesterday, as well as in our supplemental slides, copies of which can be found on our IR website.
During this call we will also discuss certain non-GAAP financial measures.
Conciliations between GAAP and non-GAAP metrics for our reported results can be found in our press release issued yesterday as well as in our supplemental supplemental slides copies of which can be found on our IR website.
Speaker 1: Finally, this call is being webcast and it will be archived on our website shortly after. With that, I'll turn the call over to David.
Yeah.
Finally, this call is being webcast.
It will be archived on our website shortly after with that ill turn the call over to David.
Yes.
Speaker 2: Thank you, Anna. This is David Bazuki and I'm joined by Mike Guthrie this morning. We'd like to welcome our Roblox community and our investors, both large and small. Great to be with you all today.
Thank you Anna this is David <unk> and I'm joined by Mike go through this morning, we'd like to welcome our robots community and our investors both large and small are great to be with you all today.
Speaker 2: And we're wishing you and your families all the best as hopefully we're emerging from COVID. Last year at this time we were heavily buttoned down. Today we have many of our Roblox games live in the office.
And were wishing you and your families all the best as hopefully we're emerging from Covid.
Last year at this time, we were heavily buttoned down today, we are in many of our ruble Oxfam's live in the office. We appreciate your partnership as you are joining us in our mission of bringing 1 billion people together with stability and optimism around the world.
Speaker 2: We appreciate your partnership as you're joining us in our mission of bringing one billion people together with stability and optimism around the world.
Speaker 2: A couple quick highlights before we dive in with some additional facts that were not shared in our shareholder letter. In addition to our January user growth our 17 through 24 year old segment in January grew 51 percent year on year which is a wonderful validation of our vision to bring people of all ages together on our platform.
Couple of quick highlights before we dive in with some additional facts that were not shared in our shareholder letter. In addition to our January user growth or 17 through 24 year old segment in January grew 51% year on year, which is a wonderful validation of our <unk>.
<unk> to bring people of all ages together on our platform and internationally. In addition to strong growth in Asia Pacific Latin America, and Europe , two countries that we have a lot of focus on Japan, and India. Both grew over a 100% year on year.
Speaker 2: and internationally in addition to strong growth in Asia Pacific, Latin America and Europe .
Speaker 2: Two countries that we have a lot of focus on, Japan and India, both grew over 100% year on year, which is wonderful for us.
Which is wonderful for us.
Speaker 2: As we start to look at expanding the uses of Roblox, our community fund is live and we have as we've announced some exciting partnerships including with FIRST Robotics.
As we start to look at expanding the use of the roadblocks or community fund is live and we have as we've announced some exciting partnerships, including with first robotics and we continue to do branded events and concerts almost as fast as we can go as we move towards <unk>.
Speaker 2: And we continue to do branded events and concerts almost as fast as we can go as we move towards our vision of making these types of experiences completely self-serve. And I would highlight our recent partnership both with the NFL and Zara Larsson.
Vision of making these types of experiences completely self serve and I would highlight our recent partnership both with the NFL and Zara Larsson.
Speaker 2: Over 40% of the top 100 experiences on Roblox right now are using voice.
Over 40% of the top hundred experiences on robust right now are using voice and we are working thoughtfully and carefully as we expand this rollout to our 13 and validated users and as always we will do this with safety and stability.
Speaker 2: And we are working thoughtfully and carefully as we expand this rollout to our 13 and up validated users. And as always, we'll do this with safety and civility. And we have a lot of wonderful stuff in the pipeline that we can talk about today on the product side.
And we have a lot of wonderful stuff in the pipeline that we can talk about today on the product side.
Speaker 2: With that, I would just like to highlight our core value is always safety and stability. And that's where we put our primary focus. And with that, I'll hand it over to Mike Guthrie to see if he has any opening remarks. MR. GUTTRIE, Q&A MODERATOR, NATIONAL ANTHEM Thanks, Dave. I just wanted to end on something that Dave said. In addition to the high rate of growth in 17 to 24-year-olds, the number of people who have been diagnosed with COVID-19 is rising. And we're seeing that in the United States. And we're seeing that in the United States. And we're seeing that in the United States. And we're seeing that in the United States. And we're seeing that in the United States. And we're seeing that in the United States. And we're seeing that in the United States.
With that just like to highlight our core value is always safety and stability.
And that's where we put our primary focus and with that I'll hand, it over to Mike Guthrie to see if he has any opening remarks same theme one.
One of them.
And as Dave said in addition to the high rate of growth in 17 to 24 year olds.
Speaker 2: That aid demographic did comprise 20.5% of all VAUs in January . So it's not as though it's a small segment for us.
Is that a demographic that comprise 25% of our views and January so it's not as though it's a small segment for us.
Speaker 2: It's a large segment and it's growing quickly. As they also mentioned, we're basically seven quarters.
The large segment, it's growing quickly.
And they are.
Also mentioned, we're basically seven quarters into Covid, the first four quarters, our business pretty dramatically and we had quarters in which our topline was tripling year over year uneven.
Speaker 2: into COVID. The first four quarters, our business grew dramatically and we had quarters in which our top line was tripling year over year and even in this time last year it was...
This time last year it was $2 six actually it had been the year before so we're obviously lapping some fairly significant growth, while we do know for sure.
Speaker 2: 2.6 actually, the year before. So we're obviously laughing some fairly significant growth. But we do know for sure.
Is that we're jumping off into 'twenty, two and in the periods as hopefully the world is reopening and pointing to and we just have never been bigger or better position. We are at peak users on the platform.
Speaker 2: bigger or better position. We are at peak users on the platform. We are at peak engagement, having been over 4.2 billion hours and over 4 billion for the first time. We have never had as many payers on the platform. And most importantly, we've never shared more of the economics with the developer community and had a stronger set of incentives for developers to build amazing content. We've never worked with more artists on the music side or brands on Roblox. And last and certainly not least, we have never had more incredibly talented product and engineering professionals in our company excited to build amazing things over the next few years. So we couldn't be more excited about jumping into 2022 and beyond. And we really look forward to taking questions this morning. And with that, I think we'll open it up. So over to you, Audra. Thank you. And at this time, I would like to remind everyone in order to ask
Pete engagement Havent been number $4 2 billion hours.
And over 4 billion for the first time, we have never had as many payers on the platform.
Most importantly, we've never shared more and the economics of the developer community and a stronger set of incentives for developers to build amazing content. We've never worked with more artists on the music side or brand on roadblocks.
And certainly that we have never had more incredibly talented product and engineering professionals in our company excited to build on these things over the next few years. So we couldnt be more excited about something into 2022 and beyond and we really look forward to.
Taking questions. This morning, and with that I think we'll open it up.
Speaker 3: Over to you, Audra.
Over to you.
Speaker 1: Thank you. And at this time, I would like to remind everyone, in order to ask a question, please press the star followed by the number one on your telephone keypad. We'll go first.
Yes.
Thank you and at this time I would like to remind everyone in order to ask a question. Please press <unk>.
Followed by the number one any conferences.
We'll go first to Mike coming back.
Speaker 4: Hi, good morning. Thank you very much for the question. I'm just wondering if you could talk a little bit about your view on the impact of gift cards in the quarter, particularly in December , and how that may have impacted January bookings. Thank you very much.
Hi, good morning, and thank you very much for the question I was just wondering if you could talk a little bit about your view on the impact of gift cards in the.
Quarter, particularly in December and how that May have impacted January bookings. Thank you very much.
Speaker 2: Thanks for the question.
Hey, Mike Thanks for the question.
We had a huge Q4 and gift cards gift cards grew incredibly quickly.
Speaker 2: to foreign gift cards. Gift cards grew incredibly quickly. What we've learned is that it's an incredible channel. It's very powerful. Getting gift cards in front of more people as they're in the physical world is a high priority for us. And we just grew a really accelerated rate in the gift card business in December .
We've learned is that it's an incredible channel, it's very powerful getting gift cards in front of more people.
Is there in the physical world is a high priority for us and we just grew really accelerated rate in the gift card business in December .
Speaker 2: Because it's such a great gifting item, it's certainly possible that users came into January with robust balances.
Because it's such a great gifting item, it's certainly possible that users came into January with robust balances.
Speaker 2: We've been doing a little bit of work inside the company trying to figure that out. I don't have enough good data to suggest that there might have been some deferred purchasing in January . So I don't want to I really don't want to make that statement. We're going to continue to do some work, but what you should take away from this is our prepaid card team.
We've been doing a little bit of work inside the company is trying to figure that out I don't have enough. Good data to suggest that there might have been some deferred purchases in January if I don't want to I really don't want to make that statement, we're going to continue to do some work, but what you should take away from this is.
R R.
Our prepaid card team.
Speaker 2: What's the store value product as a really exciting one? And we're going to be putting quite a bit of resources behind growing that in 2022.
Visit the store value product is a really exciting one and we're going to be putting quite a bit of resources behind growing that in 2022.
Speaker 4: And if I could just have a quick follow up, could you just talk a little bit about how you see the booking growth evolving throughout 2022 and then into 2023? Thank you.
And if I could I just have a quick follow up.
Could you just talk a little bit about how you see the bookings growth evolving throughout 2022, and then into 2023. Thank you.
Speaker 2: Yeah, thanks Mike. I mean, yeah, we don't give formal guidance as you know. I always look...
Yes, Thanks, Mike Yes.
We don't give formal guidance as you know I always look.
Speaker 2: variety of data, but I look at our bookings charts and our DAU charts a lot. I look at them over, you know, like a 12-quarter period and obviously on an absolute basis the business has been, you know, really up and to the right over the last, well, 12 quarters and even before that.
Alrighty of data, but I look at our bookings.
And our new charts, a lot and look at them over a 12 quarter period, and obviously on an absolute basis the business has been.
Really up into the right over the last 12 quarters and even before that the point of that.
Speaker 2: The point of that though is that when I look at the growth rates that were in 2q of 20 and 3q of 20 and 4q of 20, the first four quarters of COVID, we just had immense growth, three times the rate of growth in some of the quarters. And between the first quarter of 21 and the second quarter of 21, we went from 161% bookings growth to 35%. And what that really represented was
The growth rates that were in QQ, <unk> and <unk> 'twenty.
First four quarters.
And we just had immense grow three times the rate of growth in some of the quarters between the first quarter of 'twenty, one and the second quarter of 'twenty. One we went from a 161% bookings growth to 35% and was that really represented was.
Speaker 2: um you know comparisons we were we were finally in a period where we were comparing against our early quarterly results when COVID-19 started we look at the data a lot to see
Comparisons we were finally in a period, where we are comparing against our early quarterly results. When Covid started when you look at the data a lot to see is that a onetime bump in our business or are we retaining those users are they becoming engaged users on roadblocks in as we open things up.
Speaker 2: Is that a one-time bump in our business or are we retaining those users? Are they becoming engaged users on roadblocks? And do we open things up?
Speaker 2: As the world opens up, are they staying with us? And the answer is yes. We probably most clearly see that in payer data, where just the raw number of payers has been growing sequentially for a long time. And now since it's at peak level.
The World opens up are they are they staying with us and the answer is yes.
Probably most clearly see that in payer data, where just the raw number of payers have been growing sequentially for a long time analysis at peak levels.
Speaker 2: What we also know right now is that
But we also know.
Right now is that the.
Speaker 2: The big difference in bookings, separate from users and engagement, is the big difference in the growth in bookings.
Big difference in bookings separate from users and engagement.
It's the big guys and the growth in bookings really has to do as the rates of growth on weekdays and weekends. So if we just look at the United States and the United Kingdom in particular.
Speaker 2: really has to do with the rates of growth on weekdays and weekends. So if we just look at the United States and the United Kingdom in particular.
Speaker 2: When COVID started every day, Monday through Friday, we had super high growth because people weren't at work or at school versus our normally high rates of growth mostly focused on the weekends. Now we're kind of unwinding that trend that people are going back to work. Our growth rates necessarily are slowing down on the weekdays. But the weekend growth is still significant. And so that gives us confidence to say that as we laugh.
When Covid started every day Monday through Friday.
We had super high growth because people weren't at work or at school.
Our normally high rates of growth, mostly focus on the weekend now were kind of unwinding that trend as people are going back to work our growth rate necessarily are slowing down on the weekdays, but the weekend growth is still there is still significant and so that gives us confidence to say that as we lap. We believe that we will be returning to.
Speaker 2: We believe that we'll be returning to the, you know, high rates of growth of a, you know, a great...
High rates of growth.
Great consumer Internet business. So that's what we're that's what we're focused on doing the difficult compares.
Speaker 2: consumer in that business. So that's what we're focused on doing. The difficult compares really when we look at last.
Really when you look at last year.
Speaker 2: It's right after April , so it's that May-June timeframe that we talked about. And just having looking at that data as you're coming down the other side, I would expect that you know growth starts to accelerate. And as we look to late this year, then we're going to start getting more normalized comparisons. And that should be an indication of what we think we can do in 23 and 24. But overall...
It's right. After April May June timeframe that we talked about and just having looking at that data because you are coming down the other side I would expect that growth starts to accelerate and as we look to late this year, then we're going to start getting more normalized comparisons and that should be an indication of what we think we can do.
In 'twenty three 'twenty four but overall when we look at that data. We also get a lot of other things like changes to our product things that we're doing and how we're investing in the business.
Speaker 2: While we look at that data, we also look at a lot of other things like changes to our product, things that we're doing, how we're investing in the business. And as a company focused on getting to a billion users, we're nowhere close to that. So we're quite optimistic about growth, especially as we expand the platform into other areas. Great. Thank you very much.
As a company focused on getting the 1 billion users. We're nowhere close to that so we're quite optimistic about growth, especially as we expand the platform into other areas.
Great. Thank you very much.
Well move next city that kind of JP Morgan.
Speaker 2: Mike, maybe just to follow up on your prior comments as it pertains to U.S. and U.K. specifically, do you see January sort of representing at this point a normalized level of post-pandemic spend and engagement for weekdays, or do you expect, you know, just a little bit more further readjustment as these regions head toward a full reopening?
Alright. Thank you Mike maybe just a follow up on your prior comments as it pertains to the UK specifically.
January is sort of representing at this point a normalized level of post pandemic spanned in engagement for weekdays or do you expect.
A little bit more further readjustment as these regions tend toward a full reopening.
Speaker 2: David, good question. We've watched this trend for a little while. It's hard for me to
David.
Good question, we've watched this trend for a little while it's hard for me to.
Speaker 2: exactly the date we were would be absolutely sort of back to normal. As Dave mentioned in his comments, you know, we're in the office today. There's a big geneG Sand superiority in this space across these two…
Peg exactly the date will be absolutely sort of back to normal.
As Dave mentioned in his comments, we are in the office today is a team of folks.
Speaker 2: in a conference room for the first time in a long time. And so I think the world's adjusting to that. And my sense is it's gonna, it'll take a few more, a few more weeks and months, but in a sense, every country's a little bit different. The US has had its own cadence of...
In a conference room for the first time in a long time, and so I think I think the world adjusting to that.
And my sense is it's going to it will take a few more.
A few more recent months.
In a sense every country is a little bit different.
The U S has had its own cadence of.
Speaker 2: openings and closings and different policies given state by state. The UK has been different than we have been. Scandinavia has always been a core, great market for us, albeit smaller from a user perspective because people are very fluent in English. It was an early adopter of Roblox, but they had a very different approach to COVID than we have had from a policy standpoint.
Openings and closings and different policies different state by state U K has been different than we have been Scandinavia has always been a core.
Great market for us, albeit smaller from a unit perspective.
Because people are very fluent in English. It was an early adopter of robots, but they had a very different approach to take.
The curve is and we've had from a policy standpoint so.
Speaker 2: it's not easy to pick the bottom. So I think we'll see these kinds of trends going for a little while. And in a sense, COVID is such an odd externality for businesses to deal with.
It's not easy to pick the bottom. So I think we will see these kinds of trends going for a little while.
And in a sense essentially covenant is an odd externality for businesses to deal with.
Speaker 2: I think it's possible that almost every business, 23 will be hopefully its first clean year in about three years because you just had an impact of either having it, shutting things down or then reopening. And I think obviously we're still, we're all optimistic that 22 is open, like we're open for business. So it's not as far away. When I look at the year over year numbers.
I think it's possible that almost every business 23 will be hopefully, it's furnished by clean year and about three years, because you just had an impact of either having it.
Shutting them down and then our then reopening and I think obviously we're still.
We're all optimistic that <unk> is open for business. So it's not.
Far away when I look at the year over year numbers.
Speaker 2: I sort of think it is somewhere between April , May, May, June , but that's still a guess.
Sorry to peg it as somewhere between April May May June , but thats still out.
But that's still a guess.
Speaker 5: OK, and then Dave, can you maybe expand a bit on some of the actions you're taking to make a platform more scalable for brands and then for companies like Nike or Vans that are running for an experience on Roblox. It would be interested to know the feedback so far and how they do the platform as a channel to reach their consumers.
Okay, and then Dave can you maybe expand a bit on some of the actions you've taken to make our platform.
More scalable for brands and then for companies like Nike or vans that are running for keeping experience on robust it will be interested to know the feedback so far and how they view the platform as a channel to reach their consumers.
Speaker 6: Yeah, thanks for asking that. Whether it's Gucci, Vans, Nike, or the NFL, the vision we have...
Yes, thanks for asking that for whether it's <unk>.
She then Nike or the NFL. The vision, we have is that immersive three the interaction is ultimately an amazing ways for fans to connect with brands, possibly even more than print or image or video and we shared some of the numbers with Gucci I don't think we've shared Nike vans number.
Speaker 6: is that immersive 3D interaction is ultimately an amazing way for fans to connect with brands, possibly even more than print or image or video. And we shared some of the numbers with Gucci. I don't think we shared Nike or Vans numbers or the NFL.
They are the NFL numbers.
Speaker 6: We can see a future where brands come to our platform, they use our talent hub to connect with our community. The talent hub is live to find partners to help build these experiences. And ultimately the building of these experiences is very similar to building a video spot.
We can see a future where brands come through our platform. They use our talent hub to connect with our community count and how those lives to find partners to help build these experiences and ultimately the building of these experiences are very similar to building a video spot we are working now. Additionally.
Speaker 6: We are working now additionally in ways for brands and artists to validate their accounts so we know it's the real brand or artist.
Ways for brands and artist to validate their accounts. So we know it's the real brand or artist so that they can boost traffic internally to their destination. If they want so on a single day for example, they can use facilities on their own without a partnership with us to boost.
Speaker 6: so that they can boost traffic internally to their destination if they want. So on a single day, for example, they can use facilities on their own without a partnership with us to boost traffic to those experiences. And then finally Waze, just based on our core technology, to make it easier and easier for very scaled, highly complex experiences to work at super high performance on all devices, phone, tablet, and computer, where ultimately the technology we're building will be akin to video or camera and that is more and more people can make these things very easily.
Traffic to those experiences and then finally weighs just based on our core technology to make it easier and easier for various scaled highly complex experiences to work at Super High performance on all devices phone tablet and computer where ultimately the technology.
We are building will be attuned to video or camera and that is more and more people can make these being very easily.
Speaker 7: Thank you.
Thank you.
Well go next to clinical and <unk>.
Speaker 2: Hi, thanks. Good morning. I have a quick question on user growth and the impact that international mix is going to have as that sort of grows over time. I was wondering if you could help us think about.
Hi, Thanks, good morning.
I had a quick question on user growth and the impact that international mix is going to have is that sort of grow over time I was wondering if you could help us think about.
Speaker 2: you know, how much localizing the Roblox software and developer kit has on growth. You know, I think you guys cover a little over 40% of the world's population in their native language, and I'm curious how that's benefiting, you know, consumer onboarding, developer growth, you know, velocity creation, things along those lines.
How much localizing the roadblock software developers kit has on growth I think you guys cover a little over 40% of the world's population in their native language and I'm curious how that's benefiting.
Tumor onboarding developer growth.
For the creation and things along those lines.
Speaker 6: I'll go first with a high-level product vision, and then I'll hand it over to Mike. We have a two-fold vision. Like any other traditional software product, we want our clients and in certain countries, Roblox Studio to be available in the local language, and we continue to expand those languages. But the second thing is when a creator makes content on Roblox, we want to make it available on Roblox.
I'll go first with a high level product vision, and then I'll hand, it over to Mike.
We have a twofold vision.
Like any other traditional software product, we want our clients and in certain countries robots studio to be available in the local language and we continue to expand those languages, but the second thing is when a creator makes content on roadblocks.
Speaker 6: In addition to pushing that content one time to any device, phone, tablet, computer, console
In addition to pushing that content, one time to any device on tablet computer console. We also want that content to push automatically to multiple languages at the same time and this is this is how we run right now we continue to add languages Japanese for example.
Speaker 6: Now, we continue to add languages, Japanese, for example, and Russian and other languages to make that happen automatically. And in addition, we always bring up live ops, trust, and safety as well to complement the live operations of that in multiple countries. So yes, as we add more languages, there's increased coverage, hopefully with the exact same quality we have in our native English first language.
Russia and other languages to make that happen automatically and in addition, we always bring up live ops Trust and safety as well to complement the live operations of that in multiple countries. So yes, as we add more languages.
Increased coverage.
Speaker 6: Hopefully, with the exact same quality we have in our native English first language. Then I'll take that in my case. Did that get to your question or is there a more specific financial part to it as well?
Hopefully with the exact same quality, we have in our native English first language and then I'll.
Does that get your question was there a more specific financial criteria as well.
Speaker 2: Yeah, no, I mean nothing specific. I guess I'm just curious if you guys have seen as that happens that there is, you know, significant uptake in developer onboarding or, you know, consumer onboarding and engagement. It sounds like it's just kind of across the board a couple.
Yeah, no nothing specific I guess I'm just curious if you guys are seeing as that happens that there is a significant uptake in developer onboarding or consumer onboarding and engagement and it sounds like it's kind of across the board a couple.
Speaker 2: Yeah, that's right. We do look at data where we look at what we call affinity. So is there a local affinity for content in that language? And there generally is, which means to the extent that...
Yeah, that's right.
We do look at data, where we look at can we call affinity so as a local affinity for content in that language and Theyre generally is which means and to the extent that we're successful in growing our local developer community in those markets.
Speaker 2: we are successful in growing a local developer community in those markets, that content will probably find a really receptive market. On the other hand, it's also been true over the years that we're blocked that.
That that content will probably find it really receptive market on the other hand.
It's also been true over the years the roadblocks that.
Speaker 2: Popular global content is pretty popular around the world. Localization tends to help.
We are a global content is pretty popular around the world.
Amortization to help.
Speaker 2: But some things are just universal, which is cool. But I don't think it ever hurts us to have a growing and healthy local developer community because some of that content will just find a really receptive audience. Just a final wrap up on the developer community. We have a recent blog post where we identify the ranking where we see Roblox developers. So please feel free to message me if you like what we're doing or have additional resources. And some of the resources at the end would be just pop up as an answer right after this stress analysis. When we present this article, people think that's really necessary. And it's pretty easy even to confine Suicide to say hey, reactions,usions,Initial Broad mapleseeds, Chapter 2, End time pavilion, and observation.
But some things are just universal, which is which is cool, but I don't think it ever hurts us to have a growing.
Healthy local developer community because some of that content was defined a really receptive audience.
And just a final wrap up on the developer community.
Recent blog post where we identify the ranking of where we see robots developers.
Speaker 6: in order, United States, Brazil, Russia, Philippines, United Kingdom, Germany, Canada, Mexico, Turkey, South Korea. There's really a variety of organic creators and developers coming on from around the world.
In order to United States, Brazil, Russia, Philippines, United Kingdom, Germany, Canada, Mexico, Turkey, South Korea, there's really a variety of organic creators and developers coming on from around the world.
Speaker 1: Next, we'll move to Brian Nowak at Morgan Stanley .
So move to Brian Nowak at Morgan Stanley .
Speaker 6: Great. Thanks for your question. Rather than talking year on years, I think it could be helpful to talk about sequential a little bit, just given the noise in the year on year comps. It looks like North America daily active users were down sequentially. Could you just talk about what age group is driving that? Which one's declining versus not growing as quickly sequentially? And then are you seeing North America DAUs up in January versus December ? And how do you think about the sequential growth of North America DAUs throughout the rest of this quarter?
Great. Thanks, taking my questions rather than talking year on years. It could be helpful to talk about sequential a little bit just given sort of the noise in the year on year comps it looks like North America daily active users were down sequentially.
Can you just talk about what age group is driving that which was declining versus not growing as quickly sequentially. And then are you seeing North America da use up in January versus December and how do you think about the sequential growth in North America da use throughout the rest of this quarter.
Speaker 2: Yeah, hey Brian .
Yes, Hey, Brian .
Iain.
Speaker 2: you know, in the fourth quarter, it's not unusual to have a decline. Just think a little bit, like Q3 is July , August and September . July and August are just peak for us. That's an absolutely high level time of activity. September is back to school, things slow down. It's a shorter month. And then October and November are actually pretty quiet for us until late when things pick up. A little bit of a bump around Halloween. So it really picks up around December , obviously, for the holidays. So Q3 has been bigger than Q4.
In the fourth quarter, it's not unusual to have.
Clive just think a little bit. The Q3 has July August and September July and August peak for us.
Absolutely high level time of activity September back to school and things slowdown.
It's a shorter month in October and November actually pretty quiet for us until late and things pick up a little bit of a bump around Halloween. So and then it really picks up around December obviously for the holiday so.
Q3 has been bigger than Q4.
Speaker 2: you know, many years. It's not really unusual. The other effect on DA's, on daily active users is this...
Many years, it's not it's not really unusual.
The other effect that on.
Daily active users is the shrink.
Speaker 2: The number of accounts, I don't have that up off the top of my head, is probably not.
Currency issues right. The number of accounts I don't have that.
On top of my head.
Probably not.
Speaker 2: down year over year. It's just the daily activity is coming down because again people are back to school, back to work. And it's incredibly difficult to compare with a period where everything was shut down. You've never seen anything like that in our history. So, January , my guess is, over December , the thought in my head, is that we're still sequentially down. Again, just frequency, especially after the holidays.
Down year over year is just the daily activity.
It's coming down because again people are back to school and back to work and it's incredibly difficult to compare with the period, where everything is shut down just never seen anything like that.
And our history so.
Annual area and my guess is the December top my head is that were still sequentially down.
Again, just frequency, especially after the holidays.
Speaker 2: We'll see what happens overall in Q2, but the comparisons actually will also affect the sequential data.
We'll see what happens overall in Q2, but.
The comparisons actually will also affect the sequential data.
Okay, So Jamie January still down versus December .
Speaker 2: North America? I'm guessing it is. I'm going to look around the table and get the data for you and we'll come back before the end of the call. Okay.
Is America.
Guessing it is al.
Look around the table and get the data for you and we'll come back before the end of the call.
Okay.
We'll go next to Brandon Ross at <unk> Shang.
Speaker 8: Hi. Thanks for the questions. I have a few. First, as we try and sort through this noise that COVID has presented, if you look at it on a two-year basis, USDA growth is the caters, like 25 percent. Should we expect that number to be similar as we approach, like, real normalization going forward? Is that a good way to think about user growth on a...
Hi, Thanks for the question queue.
First as we try and.
Sort through this.
Noise that Covid has presented if you look at the.
A two year basis USDA growth.
The CAGR is like 25%.
Should we expect that number to be similar as we approach like real normalization going forward is that is that a good way to think about.
User growth on a normalized basis.
Speaker 2: And you have.
In the U S.
In the U S yet.
Speaker 2: I don't know specifically if 25% is the right number.
I don't know specifically at 25% is the right number what's going to happen over the next few years is that number is going to be defined and much more by an older user base. So for example, right now.
Speaker 2: What's going to happen over the next few years is that number is going to be defined much more by an older user base. So for example, right now...
Speaker 2: If I get back to Brian's earlier question, my strong sense is that 17 to 24 is actually not down sequentially. We know the year-over-year growth rates are really substantial.
If I get back to Brian's earlier question My strong sense is.
17 to 24 is actually not down sequentially and we know the year over year growth rates are really substantial so in the U S market generally generally what youre seeing right now.
Speaker 2: In the US market, generally what you're seeing right now, what we expect to see over the next few years, is that growth will be defined primarily by older users.
We expect to see over the next few years is that growth will be defined primarily by older users.
Speaker 2: and those numbers build a user base. If they look at 13 to 16 and 17 to 24, those growth rates are pretty high right now. 9 to 12 and even U9, we have a huge user base there, but we also have a very high percentage of the population. So we've been incredibly successful. Our strategy and expectation with that market is that we're going to be able to get a lot of growth rates in the next few months. So we're going to be able to get a lot of growth
And those numbers build a user base of over 13% to 16 and 17 to 24 those growth rates are pretty high right now.
912, and even <unk> nine we have a huge user base there, but we also have a very high percentage of the population. So we've been incredibly successful.
Our our strategy and expectations for that market is to continue to penetrate that market, but we're getting the points where obviously.
Speaker 2: is to continue to penetrate that market, but we're getting to points where obviously...
Speaker 2: additional penetrations are going to be hard to do because we have such a good effort and our focus will be to make sure that we don't
Additional penetration is going to be hard to do because they have such a good foothold.
Focuses will be to make sure that we don't lose that market and we're continuing to do.
Speaker 2: lose that market. We continue to focus on what is in our core market. But growth is going to be driven by older users and that will be...
We continue to focus on what is in our core market, but growth is going to be driven by older users and that will be.
Speaker 2: you know, when Dave talked about the percentage of experiences that are aged up experiences and the percentage of experiences
When Dave talks about the percentage of of experiences that are aged up experienced this oil percentage of experiences.
Speaker 2: where we have voice, those are gauge verified older users. Those are the kinds of things that are going to drive growth in the United States. Now, again, you look at our numbers right now, growth is also being driven outside of the United States at pretty aggressive rates. And that's just necessary, right? We're going to be.
Voyage, so their age verified older users those are the kinds of things that are going to drive growth in the United States now.
Again, you look at our look at our numbers right now growth is also being driven outside of the United States is pretty aggressive rates and that's just necessary right we're going to be.
Speaker 2: We're going to be growing, we're fortunate to be growing in Asia Pacific, Latin America, parts of Europe . So overall, you know, if I cut into pieces...
We're going to be growing we're fortunate to be growing in Asia Pacific Latin America parts of Europe . So so overall.
Currently the pieces.
Speaker 2: The slower growth will be core age demographics in the U.S. December 13, high growth and aging up. And then really, we should be high growth in the rest of the world for quite a while. And I'll turn it back over to David. I just want to highlight one other.
Slower growth will be core markets U S and core age demographics in the U S number 13 high growth and aging up and then really we should be high growth in the rest of the offer for quite a while and I'll turn it back over to David I just want to highlight one other.
Speaker 6: You know, for a long time, we were a monthly active user company, and we don't share those results I believe publicly. But those numbers highlight a traditional type of behavior on Roblox, especially weekend behavior, where those numbers are supported by weekend behavior. As we move to DAU behavior, and Mike has shared that, we capture usage on every day.
For a long time, we were a monthly active user company and we don't share those results I believe publicly what those numbers highlight a traditional type of behavior on roadblocks, especially weekend behavior, where those numbers are supported by weekend behavior as we move to <unk>.
Behavior and Mike just shared that.
We capture.
Usage on every day.
Speaker 6: One thing to note, a lot of the product vision that we are working on right now for Roblox in addition to engagement.
One thing to note a lot of the product vision that we're working on right now for roadblocks. In addition through engagement.
Speaker 6: is the DAU type product behavior, spontaneous communication, voice communication, faster frequency of the product.
<unk>.
Type product behavior spontaneous communication voice communication faster frequency of the products. So there are a lot of product functionality things that we're working on that in a world where we're growing we would expect.
Speaker 6: So there are a lot of product functionality things that we're working on that in a world where MAUs were growing, we would expect DAUs to grow even faster based on that product functionality.
Is to grow even faster based on that product functionality.
Speaker 2: And then before you bring a question, sorry, I just want to I just want to respond to Brian's last question. So Brian , DAUs in January are, in US and Canada are up sequentially in January over December . It's actually a pretty nice bump. So just to just to pose out your prior question. So Brandon, sorry, back to you.
Thanks broadband it before.
Brent next question, sorry, I, just want I, just want to respond to Brian's last question Brian .
Da use in January .
The us and Canada are up sequentially in January over December it's actually a pretty nice bump. So just to just to close out your prior question so branded sorry.
Back to you.
Speaker 8: Before I get to a big picture question, just kind of extrapolating from what you're saying, overall, are monthly active users in the US and more established markets continuing to grow despite the decline in DAU.
Before I get too big.
Your question.
Extrapolating from what you are saying overall.
Our monthly active users in the U S and more established market continuing to grow despite the decline in <unk>.
Speaker 8: as it's been less of a daily habit moving to the weekend.
As it's been less of a daily habit moving through the weekend.
Speaker 2: Um, yeah, it probably is a little different. We'll go back and look at it. We're not very difficult for us to report that number and answer your question because we know we have people get accounts on that number. So it doesn't really do me a lot of good to give you that number if I'm not totally confident.
Yes.
He is on a treadmill, let me go back and look at it we're not it's very difficult for us to report that number and in answering your question because we know we have.
Was it accounts in that number so it doesn't really do mean a lot of it goes it gives you that number if im not totally confident.
Speaker 2: However, what I will tell you is conversion.
However, what I will tell you is conversion.
Speaker 2: of in our we look at our numbers the conversion of DAOs to MAOs is actually growing. The right I think the question you're trying to get at Brandon would be accounts. If we looked at accounts or accounts growing or contracting I definitely don't have that number off the top of my head.
And are.
When you look at our numbers the conversion is down to now is actually growing.
I think the question Youre trying to get our brand it would be accounts as we've looked at accounts or accounts growing or contracting I definitely don't have that number off the top of my head but.
Speaker 2: But my guess is that number is still growing in the US. And again,
My guess is that number is still growing in the U S.
And again the older users growing as quickly as they are I am almost positive is that so that's the number that we should.
Speaker 2: number that we should go back and take a look at. But the MOU number, because it includes all the counts, it's just a little more complicated. But we know the conversion rate is going up. So that is good. There is a frequency there. It's just a frequency compared to a period of time, I don't think it's like a broken record, where everybody was locked down. And so it's very, very hard to compare to a period where people weren't leaving the house and really didn't have a lot of alternatives. Yet we're still quite a bit bigger than we were then. So.
You go back and take a look at but with the Mou number because it includes all the accounts just a little more complicated, but we know the conversion rate is going up so that is good.
There is a frequency there is just a frequency compared to a period of time in the cycle broken record.
Everybody was locked down and so very very hard to compare to a period, where people are leaving the house.
Speaker 2: and really didn't have a lot of alternatives, yet we're still quite a bit bigger than we were then. So that's really the thing that we're working through right now.
And had really didn't have a lot of alternatives yet we're still quite a bit bigger than we were then so that's really that's really the thing that we're working through right now.
Speaker 6: Okay, great. And then you talked in the letter about learning a lot from the brand experimentation on the platform. And as you look at the brands that have built experiences for your platform, which ones do you believe have been the most successful experiences and why? What does it take for a brand to succeed on Roblox right now?
Okay, Great and then you talked in the letter about learning a lot from the brand experimentation on the platform and as you look at the brands.
That half.
Built experiences for your platform, which one do you believe has been the most successful experiences and why what does it take for a brand to succeed on roadblocks right now.
Speaker 2: I think we love all of our children equally. I don't like to say that every brand is done. You know, it's so early. I'm going to answer this question. It's just so early. We do love seeing the experimentation. Brands and heads of marketing all have different goals and different approaches to interaction with the user base. And it's.
I'll start by saying I think we love all of our children equally I don't like to say is that.
So I'm going to.
Some discussion of it it's just so early.
We do love seeing experimentation.
Brands and heads of marketing different goals and different approaches to interaction with the user base.
Speaker 2: Anyway, I'll let Dave respond. But I think we're really in a very cool experimentation phase. So we love the fact that people are testing. One of the things that.
Ali.
Dave respond, but I think it was really in a very cool experimentation phase. So we love. The fact that people are testing one of the things that's.
Speaker 2: So different is the sheer level of engagement that brands may be able to enjoy on our platform versus anything else.
So different is the sheer level of engagement of brands may be able to enjoy our platform versus anything else, but yes.
Speaker 6: Yeah, I think it's really early. I think without getting any forward-looking thoughts on future product functionality, one can imagine.
Yes, I think I think it's really early I think.
Without giving any forward looking thoughts on future product functionality, one can imagine just.
Speaker 6: Just as in video, advertising and brand is such a large market, one can imagine the size of that in immersive 3D. Once we start moving into 3D human co-experience, we start to see things that mirror the real world. And so when we walk through Gucci,
Just as in video advertising and brand is such a large market one can imagine the size of that an immersive three D. Once we start moving into <unk> human experience, we start to see things that mirror, the real world and so when we walk through Gucci that is an experience that is.
Speaker 6: That is an experience that is virtually visiting an installation and purchasing things and we've actually seen some Interesting trading of those items just like in the real world following that with a nike and van's experience Wearing that clothing taking your skateboard out hanging out with your friends something we do in the real world with the nfl, you know interacting and playing with your friends around Virtual football league and all of those kind of things. So
Virtually visiting and installation and purchasing things and we've actually seen some interesting trading of those items just like in the real world following that.
With Nike and vans experience.
And wearing that clothing, taking a skateboard hanging out with your friends, it's something we do in the real world with the NFL interacting.
With your friends around.
Virtual football League and all of those kinds of things. So are they are all our children. We want to highlight right now that we are focused on the scalability the self serve the elegance of the experience.
The engagement of those experiences.
Well reserving all of the long term monetization. So we are more focused on.
User engagement growth with them than trying to monetize them heavily.
We're very optimistic there is a lot of <unk>.
Speaker 6: flexibility and creativity for brands to take what they would do in the real world and mirror it in our digital world. Thank you. We'll go next to Matthew Bortman at Tourist Security. Hey, good morning everyone. Maybe just following up on the brands commentary there, David, I guess, you know, how far are we from...
Speaker 6: flexibility and creativity for brands to take what they would do in the real world and mirror in our digital world. Thank you.
Next the ability and creativity for brands to take what they would do in the real world and in our digital World.
Thank you.
We'll go next to Matthew Thornton Securities.
Speaker 9: Hey, good morning everyone. Maybe just following up on the brand's commentary there, David. I guess, you know, how...
Hey, good morning, everyone.
Maybe just following up on the on the brand's commentary there David I guess.
How far are we.
Speaker 9: from seeing commerce enabled on the platform with a first step maybe being a partnership with someone like a Shopify or a comparable. I'm kind of curious, any thoughts there? Secondly, coming back to the UCAN DAU's question, I know sequentially they've always been down historically, but I think...
From seeing commerce enabled enabled on our platform with a first step maybe being a partnership with someone like a.
Like a shopify or.
Or a comparable I'm kind of curious any any thoughts there.
Secondly, coming back to the U can da use question I know sequentially. They are they've always been down historically, but I think year on year, if we back out the outage I'm curious if that would if you have any idea as to how much impact that had on the on a year on year comparison on on the <unk> and then and then just relatedly.
Speaker 9: year on year if we back out the outage I'm curious if that would...
Speaker 9: if you have any idea as to how much impact that had on your comparison on the DAU. And then just relatedly there I guess, Mike I'm not sure if you have any data on.
There I guess, Mike I'm not sure. If you have any data on the under 13 cohort in particularly like the 5% to 11 type demo because obviously vaccination is it really just kicked off.
Speaker 9: the under 13 cohort and particularly the 5 to 11 type demo because obviously vaccination has really just kicked off in in November there so I'm curious if that's kind of coming into into play there as well any any thoughts there would be great thanks guys so I'll highlight that we do watch usa 9 through 12 as well as 17 through 24 we do not publish the mau numbers but you know
In November there. So I'm curious, if that's kind of coming into play there as well any thoughts there would be great. Thanks Scott.
So I'll highlight that we do watch USA nine through 12 as well as <unk> through 'twenty four we do not publish the Mou numbers, but.
Sure.
Speaker 6: It's pretty well known that in USA 9 through 12 on the MAU side were a cultural phenomenon with very high usage.
It's pretty well known that in USA nine through 12 on the MH side, we're a cultural phenomenon with very high usage.
Speaker 6: the same. There's a lot of headroom on the D A. U to N A U ratio. And so when we look at future d A used in the United States as that ratio gets better as robot, you know the headroom. Roblox is a utility that's used daily for a wide range of things. Communication play learning. There's a lot of flexibility from the D A. US ACR almost runway as USA nine through 12 d A. U. Can
A lot of headroom on the <unk> ratio and so when we look at future.
In the United States is that ratio gets better as robot.
<unk> is a utility that's used daily for a wide range of things communication play learning, there's a lot of headroom on that ratio. So so that is the vision of how those USA nine through 12 da use can continue to grow on the brand.
Speaker 6: on the brand.
Speaker 6: There's, as you correctly note, future areas of monetization include digital shopping. One of our partners, Someday, their 3D destination, in addition to a tried-on brand experience, people will be buying from those experiences and having those items delivered to their doorstep, although we're not going to announce when and how that will work.
There is.
But as you correctly note future areas of monetization include.
Digital shopping.
One of our partners someday there are three the destination. In addition to try it on brand experience people will be buying from those experiences.
Having those items delivered to their doorstep, although we're not going to announce and when and how that will work. There is obviously a full brand immersion type of advertising is that we're starting to see early signals.
Speaker 6: There is obviously a full brand immersion type of advertising that we're starting to see early signals of.
Speaker 6: There's also a dynamic advertising opportunity that will be
There is also a dynamic advertising opportunity that will be.
Speaker 6: you know, exploring, which includes the use of teleports to go from place to place to launch people into individual places, includes the use of dynamic display ads that instead of getting in front of the experience and delaying the user are immersive and native. So the highlight here...
Exploring which includes the use of teleports to go from place to place to launch people into individual places includes the use of dynamic display ads that instead of getting in front of the experience of delaying the user our immersive and Nathan So high.
A highlight here as.
Speaker 6: You know, we've got $3 billion or whatever the right number might get cash in the bank. We're hiring a lot of amazing engineers, but we are primarily focused on safe and civil quality user engagement growth and DAU growth right now on the platform with a lot of opportunity for gentle increased monetization that doesn't get in front of our users long term.
We've got $3 million or whatever the right number Mike of cash in the bank. We're hiring a lot of amazing engineers, but we're primarily focused on safe and stable quality user engagement growth and <unk> growth right now on the platform with a lot of opportunity for gentle increase.
<unk> monetization that will get in front of our users long term.
Speaker 2: Yeah, and Matt, what, sorry, go back to your second question was about
Yes.
Sorry go back here your second question was about.
Speaker 2: US and Canada, VAU, do I break out something? I just didn't track.
U S and Canada.
He joined breakout something and I just didn't track.
Speaker 9: Yeah, sorry Mike. I guess I know they're always down sequentially. I guess year on year, are you able to quantify what impact the outage had? And then just relatedly, if you think about the 5 to 11 demo, obviously vaccination has really just kicked off in early November . I'm curious if you have any data to kind of maybe talk to what kind of impact that could be having in that cohort in 4Q and as we go into 22. Thanks.
Sorry, yes, sorry, Mike I guess.
I know there are always down sequentially, if I guess year on year are you able to quantify what impact the outage had and then just relatedly. If you think about the 5% to 11 demo. Obviously vaccination is it really just kicked off in early November there were so I'm curious if you have any data to kind of maybe talk to what kind of impact that could be having in that cohort.
<unk> and as we go into <unk> into 'twenty two.
Speaker 2: Yeah, um, what I can tell you on the on the nine U9 cohort is that on a global basis it's growing quickly.
Yeah.
Okay.
What I can tell you on that.
The.
Nine cohort is that on a global basis, it's growing quickly.
Speaker 2: And it's going to be one second.
And it's <unk> one second.
Speaker 2: Unite right now on a global basis is just about at the average growth rate of DAE. It's just a little underneath it. Unite is still growing quickly. US specifically, I don't have it in front of me. I'm not sure. I'm not going to actually go through that level of detail. Now the other aspect of the outage...
Yes.
Right now on a global basis.
Just about at the average growth rate of these just a little underneath it so United is still growing quickly and U S. Specifically I don't have it in front of me I'm not sure I'm not going to actually get to that level of detail.
Now if you had asked that the outage.
<unk>.
Speaker 2: In our November release, we talked a little bit about it, the three days and the timing. I think we did a pretty good job of estimating it. So I'll go back and take a look at that.
We talked in our November earnings, we've talked a little bit about it for three days and the timing I think we did a pretty good job of estimating and so I'll go back and take a look at that.
Speaker 2: Yeah, okay. But I know for a fact in January over December , this overall U13 is growing sequentially. The year of the year data I don't have in front of me and I don't generally have it with U9 versus 9 to 12. U9 is less penetrated than 9 to 12.
<unk>.
Yeah Okay.
Yes.
I know for a fact in January over December .
Overall user team is growing sequentially the year over year data I don't have in front of me and I don't certainly havent nine versus nine to 12 of United is less penetrated in the nine to 12.
Speaker 1: And we ask that you please limit yourself to one question for the remainder of the call due to time constraints. We'll go next to Bernie Mettern in with Needham & Company.
And we ask that you please.
Let me stop to one question for the remainder of the cost to the time constraint. We will go next to Bernie Mcternan with Needham and company.
Speaker 2: Great, thanks for taking the question. Mike, I was wondering, you know, I appreciate the breakdown between weekends and weekdays. I think that's really helpful. Is it possible to give a number for what weekends grew at in either 4Q or January for bookings?
Great. Thanks for taking the question.
Mike I was wondering I appreciate the breakdown between weekends and weekdays I think thats really helpful is it possible to give us.
A number for what weekends grew at in either <unk> or January for bookings.
Speaker 2: There's not. But thank you for asking. I'm just not going to get into that. Do I need to put in another one then? Yeah, go ahead. Yeah. And I understand you want to keep the friction low for brands to experiment on the platform. What's the signal you guys are looking for, though, to know when the right time to focus on modernization really is?
Is that.
Thank you for asking is in fact going to get into that.
With another one.
Yes go ahead.
Yes.
I understand you want to keep the friction low for brands, who experiment on the platform.
What's the signal you guys are looking for though to know when the right time to focus on monetization really is.
Speaker 2: Uh, with brands, when is the right time to turn on monetization? Yeah.
With brand who is the right time to turn on monetization yes.
Speaker 2: I'll give you a quick overview and then I'll let Dave talk more about it. It's incredibly subjective. I'm just going to go ahead and take a look at it right now.
Yes, it does.
I'll give you a quick overview and then I'll, let David talk more about <unk>.
Incredibly subjective right now last.
Speaker 2: Last year we had 12 great successful brand experiences. In the beginning of this year, we started off at a higher rate. I think the metrics for 2022 is the sheer number of great brands that just do something with us so that they're looking at the platform and experimenting. And as we watch what they do and how they do it and the value that they get.
Last year, we had 12, great successful brand experiences at the beginning of this year, we started off at a higher rate I think the Max I think the metric for 2022 is the sheer number of great brands such as <unk>.
Something with us so that they are looking at the platform and experimenting and as we watch what they do and how they do it and the value that they get then I think we can start having those discussions.
Speaker 2: then I think we can start having those discussions. I think to do it otherwise would be to add a lot of friction, require long negotiations, and really slow down that part of the platform, which I think would be a real mistake. I've had conversations in the last few weeks and months with some of the developer community.
I think to do it otherwise we'd be that a lot of friction require long negotiations.
And really slowdown that part of the platform, which I think will be around the state I've had conversations in the last few weeks and months with.
Some of the developer community.
Speaker 2: Many of them are getting very, very sophisticated. These developers are really building.
Many of them are getting very very sophisticated.
Developers are really building sophisticated businesses theyre not just hiring developers theyre hiring business people. They look at the brand opportunity really excited about it.
Speaker 2: sophisticated businesses. They're not just hiring developers, they're hiring business people. They look at the brand opportunity, they're really excited about it.
Speaker 2: The recent brand experiences are built by our community.
<unk>.
The recent brand experiences are built by our community and they're really excited about that opportunity.
Speaker 2: And they're really excited about that opportunity. The economics of that is a great pairing to what they're doing on their other creations and building of gaming experiences. And so we want to let that really grow organically rather than try to cut that off and slow it down.
The economics of that.
<unk> is a great pairing to what theyre doing on their other creations and building of gaming experiences and so we want to let that really grow organically rather than kind of cut that off and slow it down.
Speaker 6: Yeah, and then this is Dave chiming in on what you might see once again without giving any date that is a
And then this is Dave chiming in on.
What you might see once again without giving any date that is a functionality on our platform that supports both brands and developers for developers, we're seeing more and more.
Speaker 6: functionality on our platform that supports both brands and developers. For developers, we're seeing more and more VC-backed developers, developers taking a bigger risk, and many of these developers, just as they do in other markets, are not able to get into the market.
Feedback developers developers, taking a bigger risk in many of these developers just as they do in other markets.
Speaker 6: want to initially bring people to their experience as they test, as they grow, and boost themselves. And so we have a primitive system on our platform, we are refining that.
Want to initially bring people to their experience as they test as they grow.
And boost themselves. So we have a primitive system on our platform. We are refining that so that is much more sophisticated.
Speaker 6: So that is much more sophisticated. That concept of boosting and really essentially paying to bring people to a destination in a nice way.
That concept.
Boosting and really essentially paying to bring people to a destination in a nice way is very similar to a brand in the traditional TV spot, where they want to make sure. They get a certain number of eyeballs on there in this case the video, but in the future and their <unk> immersive experience.
Speaker 6: is very similar to a brand in a traditional TV spot where they want to make sure they get a certain number of eyeballs on their, in this case, video, but in the future in their 3D immersive experience. So...
Speaker 6: You will see us working on ways for brands. If a brand wants to predictably have 5 million people in a week, for example, come to their experience.
So you will see us working on ways for brands as a brand and wants to predictably.
5 million people in a week for example come to their experience at <unk>.
Speaker 6: at some point, and once again, I'm not sure what the right number is, whether it's 100,000 or whatever, have a way to do that and guarantee they can bring that type of exposure.
And once again I'm not sure what the right number is whether it's 100000 or whatever have a way to do that and guarantee they can bring that type of exposure.
Well go next tissue comment Stifel.
Speaker 8: Hey, guys. Good morning. Several larger entities have expressed ambitions around or an intent to develop a metaverse. As you reflect on last year, did you find that this competitive push created any challenges for Roblox, including your ability to recruit and retain intellectual capital? And would you anticipate this changing in any way in 2022? Thanks.
Okay. Thanks, Hey, guys good morning.
Several larger entity is expressed ambitions around earn intend to develop a mat averse.
As you reflect on last year did you find the competitive push created any challenges for roadblocks, including your ability to recruit and retain the intellectual capital and would you anticipate this changing in any way in 2022.
Speaker 6: Yeah, I'll comment on this. The Metaverse concept has been around for 30 years and this has been a consistent arc from the initial mention in Snow Crash.
Yes.
Comment on this.
<unk> concept has been around for 30 years and this has been consistent from the initial mentioned no crash.
Speaker 6: through some products in actually the early 2000s.
Through some products and actually the early two thousands through roadblocks, we've been doing this for 16 years, we have accrue.
Speaker 6: through Roblox. We've been doing this for 16 years.
Speaker 6: We have a bunch of things that are really foundational to us, including being a 100% UGC platform, a foundation on safety and civility.
A bunch of things that are really foundational to us, including being a 100% UGC platform.
Dacian on safety.
<unk>.
Speaker 6: and really a company based on innovation. We've seen absolutely zero friction on the recruiting side as we continue to grow and show our vision of where we're going here. And next we'll move to Omar Dasuki.
And really our company based on innovation.
Absolutely zero friction on the recruiting side as we continue to grow and.
Show, our vision of where we're going here.
Okay.
And next we'll move to online at Bank of America.
Your line is now can you maybe need him.
Hi can you hear me.
Speaker 4: Yeah, we can. Great. Thank you. OK. You presented a compelling feature release roadmap for the first half of 22 at your investor day in November , including spatial voice, UGC, 3D layered clothing, avatar heads, faces and bodies, and facial expressions, for example.
Yes again, great. Thank you okay.
We presented a compelling feature release roadmap for the first half of 'twenty two at your Investor Day in November .
Including spatial voice UGC, <unk> layered clothing, avatar heads faces and bodies and facial expressions for example.
Speaker 4: Which of your feature roadmap would you consider continuous improvement of the platform versus a step change improvement in the technology? And also, how would you think about your acquired technologies such as human and gilded in that respect?
Each of your feature roadmap would you consider continuous improvement that's a platform versus a step change improvement in the technology.
And also how would you think about your acquired technologies, such as human and gilded in that respect.
Speaker 8: Yeah, so a couple highlights. We presented a really wide roadmap at our investor day. I don't think we gave any shift dates for that. And at the same time, we're live with spatial audio. And I think the layered clothing and UGC bodies are, I can see where they are in the pipeline. I'm really excited and optimistic about that. But we would never give shift dates on anything. On our acquisitions, we tend to make two types of acquisitions. We are traditionally.
Yes, so a couple of highlights.
We presented a really wide roadmap at our Investor day.
I don't think we gave any ship dates for that and at the same time, we are alive with spatial audio and I think the layered clothing and UGC bodies are I can see where they are in the pipeline and we're really excited and optimistic about that but I wouldn't we would never get a ship based on anything.
On our acquisitions, we tend to make two types of acquisitions.
Traditionally, bringing people onboard who are experts in certain fields, whether it was we may I as you mentioned some of the others that have expertise around the avatar or other types of our platforms social with bass.
Speaker 6: bringing people on board who are experts in certain fields, whether it's Loom AI, as you mentioned, some of the others that have expertise around Avatar or other types of our platforms, social with Bash. And then on the case with Gilded, this is a.
And then on the case with gilded. This is a wonderful parallel category I would call that the social communication platform and there is several other well known people in this area. We do believe there's opportunities for inter operability for connection between these types of platforms.
Speaker 6: parallel category. I would call that the social communication platform, and there's several other well-known people in this area. We do believe there's opportunities for interoperability, for connection between these types of platforms, and what we would call ROBLOX as an immersive 3D co-experience platform. So one of the things we're doing with Gilded is using that as a way to look into the way these types of platforms can connect openly, and when we do that, we will make those available to other social communication platforms.
And what we would call roadblocks as an immersive three D co experience platform. So one of the things we're doing with deal that is using that as a way to look into the way. These types of platforms can connect to openly and when we do that we will we will make those available to others social communication platform.
Yes.
Speaker 1: And we have no further questions in the phone. Can you all turn the conference over to Anna for the web questions?
And we have no further questions.
I'll turn the conference over to Ana for the ramp question.
Speaker 10: Great. I think we've got time for one more from Andrew Erkowitz from Jeffries. Dave or Mike, can you discuss sending trends relative to new users versus repeat and by international versus US Canada?
Great I think we've got time for one more here from Andrew Jeffrey.
Dave or Mike can you discuss spending trends relative to the Canadian especially as VP and by international versus U S. Canada.
So spending trends.
Speaker 2: Oh, so say again, for new users versus......versus international......new users versus repeat... Yeah, yeah, yeah....international versus U.S. Canada. Yeah. Payers tend to, over time, increase their rates of payment, and new pairs always tend to be on the low end of monetization. So as we add new pairs, they tend to come in low and grow over time as a cohort.
Oh and for new users versus they're spending less international yes.
Yes international vessel yet.
Yes.
Payer.
Tend to over time increase their rates of payment and new payers always tend to be on the low end of monetization. So.
As we add new payers they tend to come in low and grow over time as a cohort.
Speaker 2: Returning payers are pretty predictable as a cohort. They tend to grow really consistently for very long periods of time. We have really high payer retention on the platform.
Returning payers are pretty predictable.
As a cohort they tend to grow really consistently for very long periods of time, So we have really high.
Their retention.
On the platform and.
Speaker 2: It's been true forever that the new pairs are diluted. It's a little while monetization. All the existing pairs are continuing to add.
Yes, it's been true for forever that he payers are dilutive to that overall monetization of existing payers are continuing to add.
Speaker 2: International monetization very much tracks GDP per capita. You look at the wealth effects.
International.
Monetization.
Very much tracks GDP per capita you look at the worst effects of countries and the spending will look very very similar.
Speaker 2: of countries and the spending will look very, very similar. So if you took the US as a unit of one, then look at GDP for capital in the other countries and you'll probably have a pretty good sense of where monetization is around the world.
So I think to the U S. As a unit of one then look at GDP per capita in the other countries and Youll probably have a pretty good sense of our monetization is around the world.
Speaker 10: Great. I think that wraps it up for us.
Thank you.
I think that wraps it up for us.
Speaker 1: Thank you. And that does conclude today's conference. Thank you for your participation. You may now disconnect.
Thank you and that does conclude today's conference. Thank you for your participation you may now disconnect.
Speaker 7: Of Your Living belly
Okay.
Yes.
Okay.
Yes.
[music].