Q1 2025 Roblox Corp Earnings Call - Q&A
102, five to 1.15 billion.
Q1 da use 97.8 million just shy of 100 million da use up 26% year on year and let's dive into a couple of the areas. We've we've been talking about growing ever since our S. One first U S and Canada still grew.
Growing with solid <unk> growth of 22%.
APAC, 40%, Japan, one of the largest gaming markets growing 48% year on year, and India growing 77% year on year will talk a bit about some of the performance things, we're doing on our app and the ecosystem to support that.
And on demographics, very large opportunity for us over 13, 13 and up <unk> grew at 36% year on year and now our da use are at 62% over 13 an.
On ours, we hit 21 7 billion hours in Q1, that's up 30% year on year similar to the <unk> trends U S, Canada, 27%, APAC, 40%, 44% growth, Japan hours, 50% year on year, India hours 78.
8% year on year, 13, and up 40% engagement growth year on year and on the hours very similar to <unk>, 64% of the hours in 13 and up.
Continuing on our efforts for thoughtful cost management combined with our growth in Q1, our cash from operations was $443 million that was up 86% year on year and that 17% above the high end.
Our guidance, which was $380 million pre cash flow in Q1, 426 million up 123%, 18% above the high end of our guidance.
Just a little dive on some of the operational efficiencies we've been focusing on.
Trust and safety.
Up 8% year on year now, 13% of revenue, 11% of bookings I want to highlight as we generate this operational efficiency quality continues to go up.
<unk> continues to be a key component of our efficiency, there and we're getting better on all fronts AI driven moderation has really driven the quality of our system both for content safety and communications safety.
Our personnel costs exclusive of stock based comp were $2 38 million want to highlight these are growing.
Less fast or slower than bookings and revenue at 23% of revenue in two points out of bookings and we're getting great leverage here and more leverage to come as we start to continue to accelerate our coding efforts with AI.
On that.
Same time, where we would like to see more money moving in addition to our bottom line as creator earnings <unk> was up 39% year on year in Q1 at $281 million, that's 27% of revenue 23% of bookings.
Our creators are on track for earnings over a $1 billion. This year for the first time ever.
Wanted to dive a bit into our investments on creator success and making them more successful we highlighted a few of them.
Differential roadblock robust pricing.
<unk> is really working we shared some of the results here in our letter.
And the creator community is really getting into this.
Also the inexperience price optimization that we rolled out is giving us roughly 4% more than median creator earnings for creators who are participating we're now at 35% of top 100 experiences by spending using price optimization.
<unk>.
We've seen some experiences do as well as 15% improvement in the earnings including slapped battles.
And.
Really really satisfying thing here when we started running this optimize their prices went down not up which is really just a great Testament for.
Helping creators find more revenue and really an engagement and spending positive way.
Also last week regional pricing recommendations.
For game passes this means that dynamically users in for example, India or Brazil will see different prices than they would if they are in the UK.
Our early testing is showing really promising results. We've only released it for game pass is stay tuned we're going to be adding in gaming avatar marketplace items.
Going over to search and discovery, we want to highlight.
We really tried to surface diversity and content and its fair way and this is really really important because 90% of the traffic on roadblocks.
Originates from our homepage that is a really crucial channel.
We said publicly and I would say not just on roadblocks, but across the industry.
Our belief and commitment to transparency and search and discovery algorithms and we have started to outlining how retention engagement monetization and intentional co play our signals we've gone so far as to.
Make these signals available as much as possible on our analytics dashboard for creators, so transparency, but giving feedback to creators. So they can see how they're doing on these signals.
We have a lot of creators.
All sizes, we're trying to really.
Drive search and discovery not just <unk>.
With short term optimization, but factoring long term ecosystem health, which is really long term enterprise value into our search and discovery and recommendation algorithms.
I'll share a few results our top 100 creators now earned $6 $7 million on average in the last 12 months.
It's up 35% versus the 12 month period ended March 31 2024.
And the top 100 creators.
Earned over a million dollars in the last 12 months that means create.
Creator number 100, if we stack rank them by earnings over the top 12 months creator number 100 earned over $1 billion. So we have over 100 creators and studios supporting themselves, which is a great diversity of content.
And discovery efforts are really helping 24% of the top 100 experiences by spending in March were created in the last 12 months, which is amazing content velocity.
Let's look at the top 10 creators they earn $36 million on average in the last 12 months, that's up 28% versus the 12 months ended March 31 2024.
We highlighted at RTC I guess it was just last year the goal of having a robot studio valued at $1 billion, we're seeing a lot of M&A action in the roadblocks ecosystem you can read about it on the news and we're really proud that we're starting to see this kind of growth on the platform.
We've shared publicly our goal and our belief is we're going to see 10% of the gaming market by consumer spending on the roadblocks platform, we're growing faster than the gaming industry as a whole because we are a platform. We have a lot of headroom and we've also shared that.
One of the tools, we're going to use to do this is a real focus on genres and watching how we're doing in sports and racing how we're doing in role playing how we're doing in battle genres, and tracking these and making sure our platform from a technology point of view search and discovery economics point of.
You can support awesome properties on this I do want to share in the three genres, we're tracking we've seen.
69% year on year growth in these three genres that I just mentioned.
<unk> highlights about live ops, we're continuing to run live ops events.
The most recent event was the Hunt Mega addition, in Mega Mega stands for 1 million, we had 10 finalists compete for one.
In cash on April 4th at our headquarters there are over 183 million visits to our hub. During this event and I would invite you to track down this event and watch it if you want it's really fun to watch top plate Super high quality probe.
Gamers, playing a fashion game like dress to impress competitively. So that's a fun funnel highlight on brands and ads, we announced our partnership with Google to help scale ads in formats like video and rewarded video.
Integration is underway, we've also added additional tech and analytics providers.
CN double verify Ias canter in Nielsen and we continue to be really excited about creating an ecosystem, where our creators have a wide range of monetization opportunities.
Including premium, including paid access including ads.
On brand Activations.
We're seeing more and more licensing type deals NASCAR.
Teamed up and did an activation with driving Empire.
PGA tour Ultimate golf simulator launched.
We've seen European Soccer League show up with and I want to pronounce it right Bund is league.
We've also seen people using our platform to reach out to young people. The AD Council did program with Love Your mind 14, mental health with resources from Headspace and Allo Yoga also updated their experience that's focused on mental health and physical.
Well being.
And I'll look around and see if we can announce there is a fun food activation on the platform and looking whether we can announce it.
So yes, Chipotle is also activated with it with a repeat of their great partnership.
On the AI side.
We're live now with Q3 D. We've we've built our own foundational <unk> model and trained it on over $1 5 million licensed and publicly available datasets and the roadblocks ecosystem. We now have won 5000 experiences that are playing.
Around an experiment.
With an experienced generative <unk> AI and this is just the beginning we have shared publicly that we are moving forward to full <unk> seen creation and we're also enabling over the next few quarters, what we call for the generation four.
<unk>.
40 generation means.
Not just creating props and static assets, but creating native roadblocks <unk> of assets that are functional that include embedded code and the example, there is cars, where you can walk up open the door hop in the car drive the car and get a heads up instrument display on the car as well as avid.
<unk> and other interactive elements.
We have also done.
We are live now with a beta of texts generation API in our system using an LLM creators can also use this directly and experienced a power.
And Pcs that are conversational AI characters.
And we're now over 300 roadblocks.
Ml models that were running in our system.
Where we got that start way back four years ago with our first few models in trust and safety. We are running this with a focus on low latency real time inference at low cost.
And then highlighting on safety and stability really our top priority since we started.
We launched in April the latest iteration of our open source AI voice classifier model, which is even more accurate runs more efficiently. This is open source and I want to highlight.
Personal anecdote when I now go to GTC I bump into companies and I've heard them say, we're using your model which is awesome.
We added three powerful parental controls in April to give parents, even more control of how their children spend time on roadblock.
And we joined the roost consortium to contribute more of our open source to that for this industry wide initiative to improve stability and safety.
Mike: So a lot of great opportunities in front of us and with that I'll hand, it over to Mike.
Mike: Thanks, just a couple of them.
Mike: Comments on <unk>.
Mike: Top line and on cash flow and margins.
Mike: First thing that I found interesting in the numbers this quarter I'm, particularly pleased with is that.
Mike: A year ago.
Mike: Bookings and bookings growth is very concentrated at the top in a smaller number of experiences is dramatically expanded that this year over the last year and if you looked at just the experiences number of 11% to 50 on our.
Mike: On our platform a year ago, they were growing at about 5%.
Mike: This year year over year, they are growing at over 100%.
So that means more developers on the platform and frankly more genres, which is very important as we tried to get 10% of the gaming market.
Mike: Data point is that just kind of developers over the last 12 months have earned more than $1 million there really are.
Mike: A lot of developers flourishing on the <unk> platform.
Mike: Number two was.
Mike: Very pleased with the performance in the U S and Canada.
Mike: Last year last quarter, rather we had a few questions about between explained about growth rates, there, but we had very high growth.
Mike: <unk> very high growth in hours of engagement and in.
Mike: And about 31% growth in bookings in the U S and Canada. So.
Mike: Great performance in the first quarter in Europe. When you look at the geographic output Youll notice that <unk>.
Mike: Ours are growing more slowly than other regions and overall, but bookings Europe is growing just perfectly in line with the rest of the rest of the world. That's still because Turkey is still offline and so thats affecting our thousand hours, but not having a big impact on bookings, so we're doing incredibly well and consistently across.
Mike: Globe.
Mike: On margins, we're just really pleased with.
Mike: The margin growth in the business and the cash flow generation in the business since we had investor day late.
Mike: Late 'twenty three over the last six quarters, we have just dramatically outperformed.
Mike: The notion of 100 to 300 basis point improvement, we're just well well above that in.
Mike: In this quarter adjusting for a working capital benefit that we got in Q1 operating cash flow grew at over 70% year over year free cash flow more than doubled year over year over 400, right about $400 million for the quarter.
Mike: At the same time, we are hiring and we are retaining great people were.
Mike: Only diluted the business by about two 2% year over year, which means our per share metrics are very strongly and that's great for investors over the kind of top line growth, we're driving the kind of cash flow growth for driving per share metrics with a small amount of dilution look really fantastic. So all in all.
Mike: The financials are great. The balance sheet is incredibly strong and we have $4 5 billion of gross cash $3 5 billion of net cash that number has grown dramatically over the last two years. So the liquidity of the company is really strong.
Mike: With that we'll end our comments and open it up for questions.
Mike: Thank you we will now begin the question and answer session.
Mike: If you have dialed in and would like to ask a question. Please press star one on your telephone keypad.
Mike: Please join the queue.
Mike: And if you are called upon to ask your question and just being very loud speaker device. Please pickup your handset and did you say that Q4 is not on mute when asking your question.
Mike: Your first question comes from the line of.
Matthew Cost: Matthew cost with Morgan Stanley. Please go ahead.
Speaker Change: Great. Good morning, everyone. Thanks for taking the question, maybe Dave I, just wanted to double click a little bit on the commentary about John.
Speaker Change: Of growth in kind of <unk> 50, and the top developers I guess it seems like Thats, a really important driver now and youre having lot of success.
Speaker Change: What are you doing and what can you do to keep that ball rolling mix Youre seeing more genre expansion more growth from the smaller developers, obviously something that happens naturally, but what steps should we be watching for you to take the company to help keep that momentum going and then I have one follow up thank you.
Speaker Change: Hey, Great question I want to highlight besides RPG sports racing and Battle, we do track all of the genres in the gaming space and there is.
Speaker Change: There's a bunch of genres. In addition to this around avatars Sim social whatever were roadblocks is amazingly powerful and well on its way to having more than 10% of that genre running on our platform either by hours bookings or <unk>.
Speaker Change: We've taken genre as a way of breaking down the whole gaming space and looking at it over the next five to six years.
Speaker Change: To build a little bit of a roadmap of what.
Speaker Change: What roadblocks might look like 110% of the gaming space is running on our platform and we have identified these three genres RPG sports racing and battle as key genres to highlight.
Speaker Change: Both of the work we have to do but also the opportunity.
Speaker Change: Huge part of this is tech we believe the core way the gaming space is running today is a little bit in the stone age and we think more and more in the future developers will create a single build that will both performed very well on very low and the Android and difficult.
Speaker Change: I'd say networking environments as well as have that exact same experience go high raise on a great gaming PC have that experience launch immediately rather than download and have that experience.
Speaker Change: It really have all the benefits of our platform like roblox dynamic economy dynamic pricing built in safety and stability built in AI and all of that so for RPG sports racing and Battle, We're really looking at do we have the attack on the platform and we shared it at RBC do we have the tech.
Speaker Change: To build an amazing battle Royale that runs great on a two gig Ram Android device do we have the tech to build a super competitive sports game with great avatars on a gaming PC.
Speaker Change: Do we have the tech to ultimately build and run a thousand player experience.
We're also looking at economics, we've shared.
Speaker Change: Initially for higher priced experiences.
Paid access we're going to give a higher Rev share stay tuned on that and then on search and discovery, where more and more rolling out ways for.
Speaker Change: People to gather more users both on and off platform long term. We think in addition to the great Tech we want the economics to be hyper competitive. It's why we get excited when creators to make more money on the platform and stay tuned on that so economics technology search.
Speaker Change: And discovery all of them along with of course partnerships to make that possible.
Speaker Change: Great. Thank you and then just going to Mike on the differential hiking initiatives I guess, you said in the shareholder letter, but so far been neutral to slightly accretive to margin what inning are we in for consumer adoption of kind of those desktop payment and gift card payment option as we move into later.
Speaker Change: And will it become more clearly accretive to margins as you guys see it and then do you have any view on the.
Speaker Change: Last night from the epic lawsuit.
Speaker Change: And then any ability that might help to open the aperture for you to do even more on the direct payments. Thanks.
Speaker Change: Matt Thanks for your question.
Speaker Change: Since we just launched.
Speaker Change: Differential pricing I guess.
Speaker Change: Just stick with the metaphor it has to be the top of the first inning.
Speaker Change: I don't know have any out there aren't any but its pretty early.
Speaker Change: We.
Speaker Change: They have done we did testing before we launched and thus far as I said in the letter.
Speaker Change: And the results are good but it's very early it's logical to us that this is what we would see but.
Speaker Change: Until we see it in practice.
Speaker Change: We of course.
Speaker Change: I don't know for sure. So so far so good but very much early days.
Speaker Change: Yes, and just on the.
Speaker Change: Apple side I would highlight.
Speaker Change: Currently without any messaging and our mobile apps, we do see the roadblocks community amongst themselves, becoming aware that they get a robust on web with gift card and through credit card and so this is so far happened organically, we're staying tuned to see what happens.
Speaker Change: The court ruling.
Speaker Change: Great. Thank you so much.
Speaker Change: Thanks.
Speaker Change: Well move next to Jason Bazinet Citigroup.
Jason Bazinet: I just had one quick question, obviously investors are very nervous about macro.
Speaker Change: <unk>.
Speaker Change: We don't have a lot of history with your company in terms of how it might fare in the downs.
Speaker Change: Downturn, so I just wanted to get your perspective on.
Speaker Change: The pace of innovation do you think that could just sort of power through any sort of potential macro weakness, where do you think investors should should sort of think.
Speaker Change: Think about the consumer potentially weakening and.
Speaker Change: And therefore spending moderate a bit.
Speaker Change: I'll go first and then like Yugo weak.
Speaker Change: Thing about this is we were live.
Speaker Change: Past results is no predictor of the future, but we were we have been alive in prior economic downturns I think we really I'm looking around the room I think it was 2007 or 2008, where we were alive and we saw minimal impact during that.
Speaker Change: From a high level roadblocks is something where the majority of the people on our platform don't spend money and then for others. These are small incremental amounts these arent cars and houses and vacation homes.
Speaker Change: So.
Speaker Change: That makes me a bit optimistic the notion of using innovation to power through.
Speaker Change: I think thats a statement rather than in the assumption and I would say we would be.
Speaker Change: The tangle of that I think without innovation, we're a very powerful platform even in the midst of these economics, we see innovation is the way to drive towards 10% of the gaming space and we do think that's important because that's what we want to get but I wouldn't say raw innovation is needed to power.
Speaker Change: Through macro.
Speaker Change: Yeah truthfully.
Speaker Change: Although every investors make their own macro determinations.
Speaker Change: And.
Speaker Change: Investors will not businesses against that environment and decide who they think will do well against that at this point.
Speaker Change: Obviously, given the quarter that we just produced oil growth.
Speaker Change: So far we're doing quite well and we're relatively low cost entertainment, but.
Speaker Change: That's where we are today it doesn't mean, that's what we're going to be in four quarters.
Speaker Change: I agree with Dave's comments.
Speaker Change: Like we don't import physical components to assemble roadblocks.
Speaker Change: Understood.
Speaker Change: Color. Thank you guys.
Speaker Change: Thanks, Jason.
Speaker Change: We'll move next to Clark.
Speaker Change: <unk>.
Speaker Change: Thanks, very much Dave.
Speaker Change: Dave I wanted to.
Speaker Change: Just follow up on the comment that you just made in response to Jason's question, you mentioned that the majority of people on your platform.
Speaker Change: Don't spend money right now you guys have done I think a very good job over the last year or so of improving engagement rates across the aggregate user base.
Speaker Change: North America, I think being a very good example of that this past quarter.
Speaker Change: <unk> also expanded the array of monetization options AI capabilities, new AD tools that are very native to.
Speaker Change: To the sector I'm curious I guess, where you see the <unk>.
Speaker Change: The opportunities of improving sort of passive.
Speaker Change: Monetization.
Speaker Change: I know, we're not going to be huge this year, but maybe remind us I guess sort of what's on the table for the next couple of years and where there could be bigger on locks.
Speaker Change: When we look at our bookings per hour that we see that as a very healthy number and we generally seeing by region and by age that scale with growth and so we always first go back to growth rather than increasing bookings per hour.
Speaker Change: Sure.
Speaker Change: There's enormous opportunity for <unk> and hourly growth. Some of this I believe will come naturally as we analyze many of the genres on our platform irrespective of how we are monetizing the genres I mentioned RPG.
Speaker Change: Sports and racing and battle typically amongst older users I think as people would look at bookings for <unk> bookings per hour.
Speaker Change: Don't hold me to this do your own research I think you would find those typically monetize even higher than we monetize so I think.
Speaker Change: What we'll see as we go after these genres and we move to some of the targets in these genres, we will see a natural ability for the creators on our platform to monetize better.
Speaker Change: Just to add to that.
Speaker Change: Sorry, just a bit.
Speaker Change: In a market as largest gaming at $180 billion, even in a market that was flat to even contracting we're still around 3% a little under 3% in this quarter with 31% growth.
Speaker Change: We are continuing to grow market share market share is still very very small in a very very large market and the track record of growing that market share over the last few years has been very good and then this quarter, we're starting to see.
Sean Roosen: Sean Roosen.
Speaker Change: More developers.
Speaker Change: Making a very good living on the platform I think the dynamic we're continuing to grow share is very very good year and.
Speaker Change: And I would say just to add to that doesn't mean, we ignore bookings per hour. It means we focus first on genre expansion.
Speaker Change: Our expansion in the backdrop.
Speaker Change: We already mentioned three on the call automatic price optimization.
Speaker Change: Bookings for our regional pricing, we're not sharing any numbers in the early developers improves bookings per hour and finally as we move our.
Speaker Change: Really payments more of them to a higher leverage type payments also improves our ability to move that money back so.
Speaker Change: Yeah.
Speaker Change: John or expansion in this growing but in addition, we do focus on bookings per hour.
Speaker Change: Can I ask just as a very quick follow up on the sort of direct payments push right now has that in any way change the way that you guys look at the opportunity with gift cards or is that sort of really just augmented the push with a more elegant I guess mechanism for for users.
Speaker Change: <unk> balances.
Speaker Change: Roadblocks to user base is very.
Speaker Change: Communicative and savvy and the more we move to giving roebucks proportionate to the amount of raw cash we can put into our system. The more they tend to become aware of that and nudge in that direction. Our gift card business is very very healthy and.
Speaker Change: Consumers are becoming more aware that with gift cards, they do get a 25% more robust when they might get from mobile native payment.
Speaker Change: Thank you.
Speaker Change: Well move next to.
Speaker Change: Carpenter from Jpmorgan.
Speaker Change: Thanks, Good morning, I had two on.
Speaker Change: On advertising you mentioned earlier that the integration work with Google is underway, just hoping you could talk about what that rollout looks like and is that something that you'd expect to be perhaps a meaningful contributor to bookings this year.
Speaker Change: Then I'm also Mr. Holder letter you talked about being in a position to reinvest a little bit could you just talk about your biggest priorities on the investment side, and where you plan to reinvest in the second half of the year. Thank you.
Speaker Change: I'll go first on.
Speaker Change: Any bookings is meaningful to us so advertising has already from that definition contributing meaningful as far as when we break it out I'll leave that up to make and we are seeing growth in all the various advertising channels on the reinvestment.
Speaker Change: When we when we look at where we spend money, we would like payment processing to go down we would like personnel costs to be balanced and grow slower than bookings and revenue and become more efficient as we AI accelerated we would like our infra trust and safety costs to go down realm.
Speaker Change: <unk> to bookings, but at the same time get more efficient and our safety to get.
Speaker Change: Continue to increase quality and performance from AI.
Mike: That leaves the two things we would like to go which is payments to creators and we said over $1 billion and slow improvement in our margins. So that's the breakdown on those five Mike you can talk about if and when we break out at.
Mike: Yes, we said, we'll probably do that when we feel like the number is big enough that it really moves the needle todays point of course any revenue is meaningful but it's not it's not a very big business today and so.
Speaker Change: I would just the core business is doing so growing so quickly it's dominating the financial performance of the business right now and so that's really where we should focus on.
Speaker Change: Obviously, it's going to be we're excited about where we are with ads are excited about our partnership with Google and as soon as we have really good data to share with people as well.
Speaker Change: Well move next tissue at Epcot Julia of Wolfe Research.
Speaker Change: Okay. Thank you for taking my questions. Let me try two please could you please talk about.
Speaker Change: The rate of margin improvement through the year, how should we think about it as we go through the year and then the second is just on AI powered tools and you've talked about this in the past that developer use.
Speaker Change: How should we think about the flow through or the benefits that youre seeing from that is that just <unk> seem for developers are you seeing economic benefits and where should we be seeing them. Thank you.
Yeah. Thanks for the question on margins, let me just take a step back over the last five quarters.
Speaker Change: Margin improvement in the business is gone 260 basis points 710 basis points 1010 basis points 510 basis points 750 basis points.
Speaker Change: Is that a pretty dramatic increase.
Speaker Change: And margin we've guided this quarter to 310.
Speaker Change: 314 actually basis point improvement in our in our guidance at the high end of the guide and we've given you guidance for the full year. So you can it's pretty easy to map basically the way, we with guidance for the full year.
Speaker Change: On top line, we baked in the beat on bookings and we.
Speaker Change: Basically kept the margins for the full year. The same. So you can do again you can do the math on the back half of the year.
Speaker Change: <unk>.
Speaker Change: Im more than having said, we will not continue to improved 700 basis points year over year. So it's not going to happen what what you will see from us is growth rate and cash flow.
Speaker Change: In excess of growth rate in bookings for for quite a while which is which is very positive, but we are so we have outperformed our our our guidance back from late 'twenty three on on margin that we've delivered multiple years of improvement.
Speaker Change: In a single quarter last Q3 for example.
Speaker Change: 1000 basis points its like.
Speaker Change: Three years plus at the high end, so we've pulled that in a fairly quickly and pulled those pulled that cash flow and very fast, but you can do the quick math on the back half of the year.
Speaker Change: On an acceleration of human potential with AI.
Sheridan: Sheridan three separate areas, both roadblocks engineering creators on our platform and then users on our platform for both roadblocks engineering as well as creators on our platform, we view AI as a human acceleration tool that will allow individuals to do more.
Sheridan: I was making the metaphor I used to use the calculator is a very powerful calculator that can leverage people a lot more than a calculator, but I do but I do believe we'll continue both internally as well as on our creator platform to see higher quality and more output and more creative output, while still having humans in the.
Sheridan: The loop and I believe long term, we will see people coupled with their the AI. They use as the overall output of that person and so we're making available code generation three D object generation on our platform stay tuned because what I shared in my prior.
Speaker Change: Your comment is our goal is full <unk> seen creation describe on the environment you would like to describe the objects and generate that whole thing.
Speaker Change: Coupled with four D generation non static objects interactive things cars humans animals things that you really can interact with rather than static object.
Speaker Change: And then finally in the third segment for the experiences and games on Roadblock, there is a bit of unpredictability here and what are people going to build when they have native embedded <unk> generation and checks generation in their experiences we're going to see my hope is we're going to see.
Generative <unk> fashion experiences for example, where people can describe what they would like to wear and other things within games. So everyone on roadblocks can be more creative.
Speaker Change: And just for the operator, we have time for one more call.
Speaker Change: Thanks, Steve Thanks, Mike for one more question.
Speaker Change: We'll move next well move next for the last question.
Speaker Change: Which is Ken Ruskin of Wells Fargo.
Ken Ruskin: Thank you for the time I appreciate you fitting me in.
Speaker Change: Just one for me could you talk a little bit about the status of the Shopify partnership and also just more broadly.
Speaker Change: Opportunities on the e-commerce side to drive e-commerce outside of maybe even to the curated experiences that are on the platform today, but to kind of broaden the aperture a little bit on the e-commerce side, how important and how strategic is that to the business in the longer term. Thank you.
Speaker Change: Well I think it's <unk>.
Speaker Change: <unk> and important at the same time, it's part of the vision not just of getting to 10% of the gaming space, but ultimately getting to $1 billion daily active users on the platform and we've shared that as we move to 10% of the gaming space on the platform, we roughly estimate that.
Speaker Change: Could be around 300 million daily Actives are goal is 1 billion and as we go to a $1 billion. We do believe in addition to the physical shopping that we do that Judy shopping we do by ourselves.
Speaker Change: <unk> that we've seen in a lot of fashion and clothing oriented experiences on the platform.
Speaker Change: We'll continue to expand to the purchase of physical items as part of that the shopify integration as early we're not we do not yet have a full on stimulation of Stanford shopping center on platform, where one can walk around with the French fries stuff on and buy it but we do see that as a as an interesting.
Speaker Change: Opportunity, we also see physical shopping as a way to fully attribute on experience advertising and close the loop on that so it's important but we are still in the early phases of this.
Well, thank you for joining us today.
Speaker Change: And that concludes our conference call.
Speaker Change: Thank you and that does conclude today's conference call. Thank you for your participation you may now disconnect.
Speaker Change: Goodbye.
Speaker Change: Okay.
Hum.
Speaker Change: