Roblox Q4 2025 Roblox Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Roblox Corp Earnings Call
Speaker #1: Good afternoon, everyone. This is Tiffany, and I will be your conference coordinator today. Welcome to Roblox's fourth quarter and full year 2025 earnings call.
Operator: Good afternoon, everyone. This is Tiffany, and I will be your conference coordinator today. Welcome to Roblox's Q4 and full year 2025 earnings call. All lines are on mute. After the speaker's opening remarks, there will be a Q&A session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. Now I will turn the call over to Jaime Morris, Roblox's Head of Investor Relations. Jaime?
Operator: Good afternoon, everyone. This is Tiffany, and I will be your conference coordinator today. Welcome to Roblox's Q4 and full year 2025 earnings call. All lines are on mute. After the speaker's opening remarks, there will be a Q&A session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. Now I will turn the call over to Jaime Morris, Roblox's Head of Investor Relations. Jaime?
Speaker #1: All lines are on mute. After the speakers' opening remarks, there will be a Q&A session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad.
Speaker #1: Now I will turn the call over to Jamie Morris, Roblox's Head of Investor Relations.
Speaker #1: Jamie, Thank
Speaker #2: you. Good afternoon, everyone. I am very happy to be here for my first earnings call at Roblox. Thank you for joining us to discuss our Q4 and full year 2025 results.
Jaime Morris: Thank you. Good afternoon, everyone. I am very happy to be here for my first earnings call at Roblox. Thank you for joining us to discuss our Q4 and full year 2025 results. With me today is Roblox's Co-founder and CEO, David Baszucki, and our Chief Financial Officer, Naveen Chopra. Before we begin, I would like to remind you that our commentary today may include forward-looking statements, which are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those described in our forward-looking statements. A description of these risks, uncertainties, and assumptions are included in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q. You should not rely on our forward-looking statements as predictions of future events, and we disclaim any obligation to update these statements except as required by law.
Jaime Morris: Thank you. Good afternoon, everyone. I am very happy to be here for my first earnings call at Roblox. Thank you for joining us to discuss our Q4 and full year 2025 results. With me today is Roblox's Co-founder and CEO, David Baszucki, and our Chief Financial Officer, Naveen Chopra. Before we begin, I would like to remind you that our commentary today may include forward-looking statements, which are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those described in our forward-looking statements. A description of these risks, uncertainties, and assumptions are included in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q. You should not rely on our forward-looking statements as predictions of future events, and we disclaim any obligation to update these statements except as required by law.
Speaker #2: With me today is Roblox's co-founder and CEO, David Baszucki, and our Chief Financial Officer, Naveen Chopra. Before we begin, I would like to remind you that our commentary today may include forward-looking statements, which are subject to risks, uncertainties, and assumptions.
Speaker #2: That could cause actual results to differ materially from those described in our forward-looking statements. A description of these risks and uncertainties and assumptions are included in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q.
Speaker #2: You should not rely on our forward-looking statements as predictions of future events. And we disclaim any obligation to update these statements except as required by law.
Speaker #2: During this call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics can be found in our shareholder letter and supplemental slides, which are available on our Investor Relations website.
Jaime Morris: During this call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics can be found in our shareholder letter and supplemental slides, which are available on our investor relations website. With that, I will turn the call over to Dave.
Jaime Morris: During this call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics can be found in our shareholder letter and supplemental slides, which are available on our investor relations website. With that, I will turn the call over to Dave.
Speaker #2: With that, I will turn the call over to Dave.
Speaker #3: Thank you, and good afternoon, and thank you all for joining us today. One year ago, we shared our goal of growing year-on-year bookings at 19 to 21 percent.
David Baszucki: Thank you, and good afternoon, and thank you all for joining us today. One year ago, we shared our goal of growing year-over-year bookings at 19 to 21%, and we talked about our goal of capturing 10% of the $200 billion global gaming content market on Roblox. The results we're sharing today for Q4 and the full year 2025 demonstrate the incredible progress we've made. In 2025, we significantly exceeded our guidance, both on revenue, where we grew by 36%, and on bookings, where we grew by 55% year-over-year.
David Baszucki: Thank you, and good afternoon, and thank you all for joining us today. One year ago, we shared our goal of growing year-over-year bookings at 19 to 21%, and we talked about our goal of capturing 10% of the $200 billion global gaming content market on Roblox. The results we're sharing today for Q4 and the full year 2025 demonstrate the incredible progress we've made. In 2025, we significantly exceeded our guidance, both on revenue, where we grew by 36%, and on bookings, where we grew by 55% year-over-year.
Speaker #3: And we talked about our goal of capturing 10 percent of the 200 billion dollar global gaming content market on Roblox. The results we're sharing today for Q4 and the full year 2025 demonstrate the incredible progress we've made.
Speaker #3: In 2025, we significantly exceeded our guidance both on revenue, where we grew by 36 percent, and on bookings, where we grew by 55 percent year-on-year.
Speaker #3: We saw the emergence of viral hits that broke concurrency records at a platform peak in August of 2025. We hit 45 million concurrents on Roblox, and we saw a new record for individual games on Roblox, including in September of 2025, Steel of Brainrot peaked at 25.4 million concurrent players at the same time.
David Baszucki: We saw the emergence of viral hits that broke concurrency records at a platform peak in August 2025. We hit 45 million concurrents on Roblox, and we saw new records for individual games on Roblox, including in September 2025. Steal a Brainrot peaked at 25.4 million concurrent players at the same time. We saw strong engagement and bookings growth across a long tail of content, driven in part by search and discovery advancements, and we made great progress on the technical underpinnings of our platform that drive genre expansion. We took safety a step further in just the last two months, rolling out facial age estimation across our platform, and we're unique in large platforms with over 100 million DAUs. In doing this, we completed the global rollout in January. Today, we continue to be bullish of our future.
David Baszucki: We saw the emergence of viral hits that broke concurrency records at a platform peak in August 2025. We hit 45 million concurrents on Roblox, and we saw new records for individual games on Roblox, including in September 2025. Steal a Brainrot peaked at 25.4 million concurrent players at the same time. We saw strong engagement and bookings growth across a long tail of content, driven in part by search and discovery advancements, and we made great progress on the technical underpinnings of our platform that drive genre expansion. We took safety a step further in just the last two months, rolling out facial age estimation across our platform, and we're unique in large platforms with over 100 million DAUs. In doing this, we completed the global rollout in January. Today, we continue to be bullish of our future.
Speaker #3: We saw strong engagement in bookings growth across a long tail of content, driven in part by search and discovery advancements, and we made great progress on the technical underpinnings of our platform that drive genre expansion.
Speaker #3: We took safety a step further in just the last two months, rolling out facial age estimation across our platform. We're unique among large platforms with over 100 million DAUs in doing this. We completed the global rollout in January.
Speaker #3: Today, we continue to be bullish about our future. We're at about 3.4% of the global gaming content market. As you know, we're aiming for 10%.
David Baszucki: We're at about 3.4% of the global gaming content market. As you know, we're aiming for 10%, and internally, we have even more ambitious goals for the US market. Now, diving into Q4, where we delivered another quarter of outperformance, Q4 revenue was $1.4 billion, up 43% year-over-year, and our Q4 bookings were at $2.2 billion, which is up 63% year-over-year. We saw strong growth across all regions. US and Canada grew 41% year-over-year. APAC grew 96% year-over-year with a couple of key strength points, Japan at 160% year-over-year, India 110% year-over-year, and Indonesia at over 700% year-over-year.
David Baszucki: We're at about 3.4% of the global gaming content market. As you know, we're aiming for 10%, and internally, we have even more ambitious goals for the US market. Now, diving into Q4, where we delivered another quarter of outperformance, Q4 revenue was $1.4 billion, up 43% year-over-year, and our Q4 bookings were at $2.2 billion, which is up 63% year-over-year. We saw strong growth across all regions. US and Canada grew 41% year-over-year. APAC grew 96% year-over-year with a couple of key strength points, Japan at 160% year-over-year, India 110% year-over-year, and Indonesia at over 700% year-over-year.
Speaker #3: And internally, we have even more ambitious goals for the U.S. market. Now, diving into Q4, where we delivered another quarter of outperformance, Q4 revenue was $1.4 billion, up 43 percent year-on-year.
Speaker #3: And our Q4 bookings were at $2.2 billion, which is up 63 percent year-on-year. We saw strong growth across all regions, U.S. and Canada grew 41 percent year-on-year.
Speaker #3: APAC grew 96 percent year-on-year, with a couple of key strength points: Japan at 160 percent year-on-year, India 110 percent year-on-year, and Indonesia at over 700 percent year-on-year.
Speaker #3: On DAUs in Q4, we saw growth at 69 percent year-on-year—a really strong growth across all regions. And our engagement hours in Q4 of last year were at 35 billion hours.
David Baszucki: On DAUs in Q4, we saw growth of 69% year-over-year, really strong growth across all regions, and our engagement hours in Q4 of last year were at 35 billion hours. That's up over 88% year-over-year. Quarterly, monthly unique payers were nearly 37 million, which is close to a double from a year ago and up sequentially. This was strong across the globe, US and Canada, up 34% year-over-year. In Q4, DevX was at $477 million, which was up 77% year-over-year. This increase in DevX reflects our 8.5% increase rate in September, and for 2025, creators earned over $1.5 billion for the first time.
David Baszucki: On DAUs in Q4, we saw growth of 69% year-over-year, really strong growth across all regions, and our engagement hours in Q4 of last year were at 35 billion hours. That's up over 88% year-over-year. Quarterly, monthly unique payers were nearly 37 million, which is close to a double from a year ago and up sequentially. This was strong across the globe, US and Canada, up 34% year-over-year. In Q4, DevX was at $477 million, which was up 77% year-over-year. This increase in DevX reflects our 8.5% increase rate in September, and for 2025, creators earned over $1.5 billion for the first time.
Speaker #3: That's up over 88 percent year-on-year. Quarterly monthly unique payers were nearly 37 million, which is close to a double from a year ago, and up sequentially.
Speaker #3: And this was strong across the globe, U.S. and Canada up 34 percent year-on-year. And in Q4, DevEx was at 477 million, which was up 77 or 70 percent year-on-year.
Speaker #3: This increase in DevEx reflects our 8.5 percent increase rate in September. And for 2025, creators earned over $1.5 billion for the first time. If we take a look at our top 1,000 creators, they earned an average of $1.3 million, which is up over 50 percent compared to a year ago.
David Baszucki: If we take a look at our top 1,000 creators, they earned an average of $1.3 million, which is up over 50% compared to a year ago. Our results reinforce our conviction in our long-term vision. We believe the future of gaming is part of a bigger vision around human co-experience. Our mission is to connect 1 billion people every day with optimism and civility, and we remain bullish about this vision. In the shareholder letter, we outlined some areas of innovation and investment we believe will fuel growth in 2026 and beyond. First, we introduced the concept of novel game expansion, which is how we talk about expanding the genres and footprint to our older audiences.
David Baszucki: If we take a look at our top 1,000 creators, they earned an average of $1.3 million, which is up over 50% compared to a year ago. Our results reinforce our conviction in our long-term vision. We believe the future of gaming is part of a bigger vision around human co-experience. Our mission is to connect 1 billion people every day with optimism and civility, and we remain bullish about this vision. In the shareholder letter, we outlined some areas of innovation and investment we believe will fuel growth in 2026 and beyond. First, we introduced the concept of novel game expansion, which is how we talk about expanding the genres and footprint to our older audiences.
Speaker #3: Our results reinforce our conviction in our long-term vision. We believe the future of gaming is part of a bigger vision around human co-experience. Our mission is to connect a billion people every day with optimism and civility.
Speaker #3: And we remain bullish about this vision. In the shareholder letter, we outlined some areas of innovation and investment we believe will fuel growth in 2026 and beyond.
Speaker #3: First, we introduced the concept of novel game expansion, which is how we talk about expanding the genres and footprint to our older audiences. You'll note, now that we're age-checking all users who participate in communication on our platform, we've been able to find really a bigger growth opportunity in the 18-plus demographic.
David Baszucki: You'll note, now that we're age-checking all users who participate in communication on our platform, we've been able to find really a bigger growth opportunity in the 18+ demographic than previously assumed. We estimate our 18 and over cohort is growing at over 50%, and this cohort monetizes 40% higher than younger cohorts. We're optimizing our platform technically to facilitate growth of high monetizing genres popular with older users, such as shooters, RPGs, and sports and racing, and we believe our technical opportunity on the platform is enormous. When we look at the gaming industry as a whole, in a sense, there's enormous room for advancement right now.
David Baszucki: You'll note, now that we're age-checking all users who participate in communication on our platform, we've been able to find really a bigger growth opportunity in the 18+ demographic than previously assumed. We estimate our 18 and over cohort is growing at over 50%, and this cohort monetizes 40% higher than younger cohorts. We're optimizing our platform technically to facilitate growth of high monetizing genres popular with older users, such as shooters, RPGs, and sports and racing, and we believe our technical opportunity on the platform is enormous. When we look at the gaming industry as a whole, in a sense, there's enormous room for advancement right now.
Speaker #3: Than previously assumed. We estimate our 18-and-over cohort is growing at over 50 percent. And this cohort monetizes 40 percent higher than younger cohorts.
Speaker #3: We're optimizing our platform technically to facilitate growth of high monetizing genres popular with older users such as shooters, RPGs, and sports and racing. And we believe our technical opportunity on the platform is enormous.
Speaker #3: When we look at the gaming industry as a whole, in a sense, there's enormous room for advancement right now. Typically, where we're going with our platform is a focus on vertical integration from cloud to engine to tooling.
David Baszucki: Typically, where we're going with our platform is a focus on vertical integration, from cloud to engine, to tooling, to our clients on many devices, to discovery, economy, and safety, as opposed to what typically and often happens in the gaming industry, in a bespoke way, putting together different cloud, different engine, different social communication. We have an enormous amount of high-fidelity AI training data that we'll share more with you, and you can watch on our main X feed as far as what we're doing with it. And we are pushing the notion for studios that the exact same game and experience should run very well and at high performance on low-end 2 GB Android, and at the same time, blossom into high res on a PC or console. And that includes running on every language or most languages with auto translation as well.
David Baszucki: Typically, where we're going with our platform is a focus on vertical integration, from cloud to engine, to tooling, to our clients on many devices, to discovery, economy, and safety, as opposed to what typically and often happens in the gaming industry, in a bespoke way, putting together different cloud, different engine, different social communication. We have an enormous amount of high-fidelity AI training data that we'll share more with you, and you can watch on our main X feed as far as what we're doing with it. And we are pushing the notion for studios that the exact same game and experience should run very well and at high performance on low-end 2 GB Android, and at the same time, blossom into high res on a PC or console. And that includes running on every language or most languages with auto translation as well.
Speaker #3: To our clients on many devices, to discovery, economy, and safety. As opposed to what typically and often happens in the gaming industry, this is in a bespoke way—putting together different cloud, different engine, different social communication.
Speaker #3: We have an enormous amount of high-fidelity AI training data. We'll share more with you, and you can watch on our main X feed for updates on what we're doing with it.
Speaker #3: And we are pushing the notion for studios that the exact same game and experience should run very well and at high performance on low-end end 2-gigabyte Android.
Speaker #3: And at the same time, blossom into high-res on a PC or console. And that includes running in every language—or most languages—with auto-translation as well.
David Baszucki: Our stack from top to bottom is multiplayer, and we run that extremely efficiently in our own data centers. And of course, we auto scale, and we believe for cost, it's very important to run the majority of your world on your own bare metal, but be able to burst into cloud. Finally, we'll talk more about our advances in safety that are built in. A couple highlights on critical innovations we're introducing to support genre expansion. We are in the middle of a full cloud rollout of native streaming of both 2D and 3D assets with various LODs. We're doing that automatically in our cloud. We have introduced Slim, which is our nickname for dynamically compositing very complex assets in our cloud and delivering those at various levels of detail for performance on all devices.
Speaker #3: Our stack, from top to bottom, is multiplayer. And we run that extremely efficiently in our own data centers. And, of course, we auto-scale. We believe that, for cost, it's very important to run the majority of your world on your own bare metal, but be able to burst into the cloud.
David Baszucki: Our stack from top to bottom is multiplayer, and we run that extremely efficiently in our own data centers. And of course, we auto scale, and we believe for cost, it's very important to run the majority of your world on your own bare metal, but be able to burst into cloud. Finally, we'll talk more about our advances in safety that are built in. A couple highlights on critical innovations we're introducing to support genre expansion. We are in the middle of a full cloud rollout of native streaming of both 2D and 3D assets with various LODs. We're doing that automatically in our cloud. We have introduced Slim, which is our nickname for dynamically compositing very complex assets in our cloud and delivering those at various levels of detail for performance on all devices.
Speaker #3: Finally, we'll talk more about our advances in safety that are built in. A couple of highlights on critical innovations we're introducing to support genre expansion.
Speaker #3: We are now in the middle of a full cloud rollout of native streaming of both 2D and 3D assets with various LODs. We're doing that automatically in our cloud.
Speaker #3: We have introduced Slim, which is our nickname for dynamically compositing very complex assets in our cloud and delivering those at various levels of detail for performance on all devices.
Speaker #3: We are we've announced that we're bringing native server authority, which is very necessary and popular and competitive gaming. And we've rolled out custom matchmaking, which are creators can use to optimize either latency age or social connection.
David Baszucki: We are, we've announced that we're bringing native server authority, which is very, necessary and popular in competitive gaming. And we've rolled out custom matchmaking, which our creators can use to optimize either latency, age, or social connection. In the first half of this year, stay tuned, we're doing a complete release of an expansion of our avatar system, including higher fidelity and more articulation. And finally, really, we've seen over the last few years, the definition of what is a game expand. The more infra and platform technology we provide, the more we see experiences that aren't typically thought of as a game, for example, Dress To Impress and Grow a Garden. And we're sharing more and more the AI tech we're building on top of our enormous data to continue this expansion with the use of AI.
David Baszucki: We are, we've announced that we're bringing native server authority, which is very, necessary and popular in competitive gaming. And we've rolled out custom matchmaking, which our creators can use to optimize either latency, age, or social connection. In the first half of this year, stay tuned, we're doing a complete release of an expansion of our avatar system, including higher fidelity and more articulation. And finally, really, we've seen over the last few years, the definition of what is a game expand. The more infra and platform technology we provide, the more we see experiences that aren't typically thought of as a game, for example, Dress To Impress and Grow a Garden. And we're sharing more and more the AI tech we're building on top of our enormous data to continue this expansion with the use of AI.
Speaker #3: In the first half of this year, stay tuned. We're doing a complete release of an expansion of our avatar system, including higher fidelity and more articulation.
Speaker #3: And finally, really, we've seen over the last few years the definition of what is a game expand. The more infra and platform technology we provide, the more we see experiences that aren't typically thought of as a game.
Speaker #3: For example, dress to impress and grow a garden. And we're sharing more and more the AI tech we're building on top of our enormous data.
Speaker #3: To continue this expansion with the use of AI. This week, we launched 40 generation, which allows experiences to include creation of new objects simply by users prompting and creating by AI.
David Baszucki: This week, we launched 4D generation, which allows experiences to include creation of new objects simply by users prompting and creating by AI. We shared earlier our vision on using our training data to create higher and higher quality NPCs. We're now working on photo upsampling in our cloud on both 2D and 3D for higher photorealism. We shared really yesterday the work we're doing on our internal world model as a service, and as a service that could be used both for creation by walking around and painting potential worlds, as well as something we look forward to potentially integrating with Roblox moments. In addition to this AI future, AI is really driving creation, safety, discovery, translation, in addition to these potential areas of user growth on our platform.
David Baszucki: This week, we launched 4D generation, which allows experiences to include creation of new objects simply by users prompting and creating by AI. We shared earlier our vision on using our training data to create higher and higher quality NPCs. We're now working on photo upsampling in our cloud on both 2D and 3D for higher photorealism. We shared really yesterday the work we're doing on our internal world model as a service, and as a service that could be used both for creation by walking around and painting potential worlds, as well as something we look forward to potentially integrating with Roblox moments. In addition to this AI future, AI is really driving creation, safety, discovery, translation, in addition to these potential areas of user growth on our platform.
Speaker #3: We shared earlier our vision on using our training data to create higher and higher quality NPCs. We're now working on photo upsampling in our cloud on 2D and 3D.
Speaker #3: For higher photorealism. And we shared really yesterday the work we're doing on our internal world model as a service. And as a service that can be used both for creation by walking around and painting potential worlds.
Speaker #3: As well as something we look forward to potentially integrating with Roblox moments. In addition to this AI future, AI is really driving creation, safety, discovery, translation, in addition to these potential areas of user growth on our platform.
Speaker #3: Every day, we capture roughly interaction data on Roblox in a PII- and privacy-compliant way. We're actively using this data to develop and train AI models that continue to bring our vision to life.
David Baszucki: Every day, we capture roughly 30,000 years of human interaction data on Roblox in a PII and privacy compliant way. We're actively using this data to develop and train AI models that continue to bring our vision to life. I want to highlight that we're internally now running over 400 AI models. This includes, of course, Cube 3D, which has recently expanded to do 4D or functional interactive type simulation. We have our own facial tracking client-side model that we use for avatar facial animation. Our voice safety model has been open-sourced and is open-sourced as part of the RUSE Consortium. Our text filter is constantly updated, and we believe one of the best, if not the best in the world. Our text and voice translations are supporting publish once and chat in multiple languages....
David Baszucki: Every day, we capture roughly 30,000 years of human interaction data on Roblox in a PII and privacy compliant way. We're actively using this data to develop and train AI models that continue to bring our vision to life. I want to highlight that we're internally now running over 400 AI models. This includes, of course, Cube 3D, which has recently expanded to do 4D or functional interactive type simulation. We have our own facial tracking client-side model that we use for avatar facial animation. Our voice safety model has been open-sourced and is open-sourced as part of the RUSE Consortium. Our text filter is constantly updated, and we believe one of the best, if not the best in the world. Our text and voice translations are supporting publish once and chat in multiple languages....
Speaker #3: I want to highlight that we're internally now running over 400 AI models this includes, of course, Q3D, which is recently expanded to do 40 or functional interactive type simulation.
Speaker #3: We have our own facial tracking client-side model that we use for avatar facial animation. Our voice safety model has been open-sourced and is open-sourced as part of the Rusk consortium.
Speaker #3: Our text filter is constantly updated, and we believe it is one of the best, if not the best, in the world. Our text and voice translations are supported, published once, and available for chat in multiple languages.
Speaker #3: And of course, we highlighted our internal world model team and our internal NPC efforts as well. We see a future of creation in Roblox Studio.
David Baszucki: And of course, we highlighted our internal world model team and our internal NPC efforts as well. We see a future of creation in Roblox Studio that's enhanced not just by code gen and not just by experience gen, but ultimately agentic iteration and testing in our cloud, once again, powered by our 4D foundational and 3D foundational Cube models. Some other AI highlights, and then I'll turn it over to Naveen. In discovery, AI has been driving personalization. In Q4, AI drove a double-digit increase in the number of unique experiences that are surfaced and are recommended for you algorithm. In 2025, on average, users engaged with over 24 unique experiences per month.
David Baszucki: And of course, we highlighted our internal world model team and our internal NPC efforts as well. We see a future of creation in Roblox Studio that's enhanced not just by code gen and not just by experience gen, but ultimately agentic iteration and testing in our cloud, once again, powered by our 4D foundational and 3D foundational Cube models. Some other AI highlights, and then I'll turn it over to Naveen. In discovery, AI has been driving personalization. In Q4, AI drove a double-digit increase in the number of unique experiences that are surfaced and are recommended for you algorithm. In 2025, on average, users engaged with over 24 unique experiences per month.
Speaker #3: That's enhanced not just by code gen, and not just by experience gen, but ultimately a genetic iteration and testing in our cloud. Once again, powered by our 4D foundational and 3D foundational cube models.
Speaker #3: Some other AI highlights, and then I'll turn it over to Naveen. In discovery, AI has been driving personalization. In Q4, AI drove a double-digit increase in the number of unique experiences that are surfaced in our Recommended for You algorithm.
Speaker #3: In 2025, on average, users engaged with over 24 unique experiences per month. This is up double digits from 2024. And I want to note we've done this all relatively transparently by sharing with our creators the factors we use for discovery.
David Baszucki: This is up double digits from 2024, and I want to note we've done this all relatively transparently by sharing with our creators the factors we use for discovery. Of course, critically, in safety, we've been using AI not just for our voice model, but with state-of-the-art models like Roblox Sentinel and Roblox Guard. And I want to highlight in safety, the continued focus on our goal to lead the world in online gaming, safety, and civility. We shared a few months ago what we believe is the gold standard. We continue to innovate in this direction. Of course, no image sharing on Roblox, of course, monitoring text for critical harms. But in addition, moving to the estimation and of age of everyone on our platform and the use in how we support chat.
David Baszucki: This is up double digits from 2024, and I want to note we've done this all relatively transparently by sharing with our creators the factors we use for discovery. Of course, critically, in safety, we've been using AI not just for our voice model, but with state-of-the-art models like Roblox Sentinel and Roblox Guard. And I want to highlight in safety, the continued focus on our goal to lead the world in online gaming, safety, and civility. We shared a few months ago what we believe is the gold standard. We continue to innovate in this direction. Of course, no image sharing on Roblox, of course, monitoring text for critical harms. But in addition, moving to the estimation and of age of everyone on our platform and the use in how we support chat.
Speaker #3: Of course, critically, in safety, we've been using AI not just for our voice model, but with state-of-the-art models like Roblox Sentinel and Roblox Guard.
Speaker #3: And I want to highlight in safety the continued focus on our goal to lead the world in online gaming safety and civility. We shared a few months ago what we believe is the gold standard.
Speaker #3: We continue to innovate in this direction. Of course, no image sharing on Roblox, of course, monitoring text for critical harms. But in addition, moving to the estimation and of age of everyone on our platform.
Speaker #3: And the use and how we support chat. In Q4, we started a global rollout of age verification for access to communication in Australia, New Zealand, and Netherlands.
David Baszucki: In Q4, we started a global rollout of age verification for access to communication in Australia, New Zealand, and Netherlands. I'm pleased to report adoption has been strong, with approximately 60% of DAUs age checked in these markets. We completed our global rollout in early January 2026, and as of 31 January, we've achieved 45% penetration of global DAUs. We're bullish about continued adoption with Australia, New Zealand, and as a model. We are also rapidly enhancing our platform to make both age check adoption and to improve its reliability. And then kind of a fun full circle here, that as part of our age estimation release, we're really going up and down our system. We've enhanced our matchmaking to cluster users based on their age and skill level.
David Baszucki: In Q4, we started a global rollout of age verification for access to communication in Australia, New Zealand, and Netherlands. I'm pleased to report adoption has been strong, with approximately 60% of DAUs age checked in these markets. We completed our global rollout in early January 2026, and as of 31 January, we've achieved 45% penetration of global DAUs. We're bullish about continued adoption with Australia, New Zealand, and as a model. We are also rapidly enhancing our platform to make both age check adoption and to improve its reliability. And then kind of a fun full circle here, that as part of our age estimation release, we're really going up and down our system. We've enhanced our matchmaking to cluster users based on their age and skill level.
Speaker #3: I'm pleased to report adoption has been strong with approximately 60% of DAUs age-checked in these markets. We completed our global rollout in early January of '26.
Speaker #3: And as of January 31st, we've achieved 45% penetration of global DAUs. We're bullish about continued adoption, with Australia and New Zealand as a model.
Speaker #3: We are also rapidly enhancing our platform to make both age-check adoption and to improve its reliability. And then kind of a fun full circle here.
Speaker #3: As part of our age estimation release, we're really going up and down our system. We've enhanced our matchmaking to cluster users based on their age and skill level.
Speaker #3: We're moving to continuous age estimation. Which will use additional signals such as play patterns, the social graph, economic activity to supplement facial age estimation.
David Baszucki: We're moving to continuous age estimation, which will use additional signals such as play patterns, the social graph, economic activity to supplement facial age estimation. And over the coming months, we have more product launches, including always continuous refinement of our text and voice filters. We're ambitious, and we believe these types of enhancements really give us the opportunity to enable even higher level of engagements than what we saw prior to our age check rollout. From a commercial and financial standpoint, our flywheel continues to accelerate. We believe having all ages on our platform is a long-term strategic opportunity that many other platforms are not confronting as they claim 13 and up users.
David Baszucki: We're moving to continuous age estimation, which will use additional signals such as play patterns, the social graph, economic activity to supplement facial age estimation. And over the coming months, we have more product launches, including always continuous refinement of our text and voice filters. We're ambitious, and we believe these types of enhancements really give us the opportunity to enable even higher level of engagements than what we saw prior to our age check rollout. From a commercial and financial standpoint, our flywheel continues to accelerate. We believe having all ages on our platform is a long-term strategic opportunity that many other platforms are not confronting as they claim 13 and up users.
Speaker #3: And over the coming months, we have more product launches, including always continuous refinement of our text and voice filters. We're ambitious, and we believe these types of enhancements really give us the opportunity to enable even higher levels of engagement than what we saw prior to our age-check rollout.
Speaker #3: From a commercial and financial standpoint, our flywheel continues to accelerate. We believe having all ages on our platform is a long-term strategic opportunity that many other platforms are not confronting, as they claim 13-and-up users.
Speaker #3: We're seeing the growth we saw in 2025 in combination with fixed-cost discipline to reinvest in our creators and our infrastructure. All really with an eye to fueling continued growth and long-term margin expansion.
David Baszucki: We're seeing the growth we saw in 2025 in combination with fixed cost discipline to reinvest in our creators and our infrastructure, all really with an eye to fueling continued growth and long-term margin expansion. We're excited about the innovations we're developing and executing across all areas of our platform, which we believe will ensure our ability to continue to deliver on our long-term vision and deliver growth over a multiyear period. With that, I'll turn it over to Naveen.
David Baszucki: We're seeing the growth we saw in 2025 in combination with fixed cost discipline to reinvest in our creators and our infrastructure, all really with an eye to fueling continued growth and long-term margin expansion. We're excited about the innovations we're developing and executing across all areas of our platform, which we believe will ensure our ability to continue to deliver on our long-term vision and deliver growth over a multiyear period. With that, I'll turn it over to Naveen.
Speaker #3: We're excited about the innovations we're developing and executing across all areas of our platform, which we believe will ensure our ability to continue to deliver on our long-term vision and deliver growth over a multi-year period.
Speaker #3: With that, I'll turn it over to Naveen.
Speaker #2: Thank you, Dave. And good afternoon, everybody. Dave obviously shared a lot of the highlights from a spectacular 2025 and a strong end of the year in Q4.
Naveen Chopra: Thank you, Dave, and good afternoon, everybody. Dave obviously shared a lot of the highlights from a spectacular 2025 and a strong end of the year in Q4. I'm going to share a few reflections on the business based on what we've observed over the last few months, and then also share some additional color on our expectations for 2026. We have more conviction than ever in the ability for Roblox to grow in excess of 20%. Our platform is healthier than ever. In fact, if you look at Q4, we saw very strong growth rates, 63% growth in bookings without the benefit of a big, new viral hit. Our age check data, as Dave mentioned, showed that we have an even larger opportunity to grow with older audiences than previously imagined.
Naveen Chopra: Thank you, Dave, and good afternoon, everybody. Dave obviously shared a lot of the highlights from a spectacular 2025 and a strong end of the year in Q4. I'm going to share a few reflections on the business based on what we've observed over the last few months, and then also share some additional color on our expectations for 2026. We have more conviction than ever in the ability for Roblox to grow in excess of 20%. Our platform is healthier than ever. In fact, if you look at Q4, we saw very strong growth rates, 63% growth in bookings without the benefit of a big, new viral hit. Our age check data, as Dave mentioned, showed that we have an even larger opportunity to grow with older audiences than previously imagined.
Speaker #2: I'm going to share a few reflections on the business based on what we've observed over the last few months. And then also share some additional color on our expectations for 2026.
Speaker #2: We have more conviction than ever in the ability for Roblox to grow in excess of 20%. Our platform is healthier than ever. In fact, if you look at Q4, we saw very strong growth rates—63% growth in bookings—without the benefit of a big new viral hit.
Speaker #2: Our age-check data, as Dave mentioned, showed that we have an even larger opportunity to grow with older audiences than previously imagined. That's especially true in the United States, where the 18-and-over cohort on our platform is growing at more than 50%.
Naveen Chopra: That's especially true in the United States, where the 18 and over cohort on our platform is growing at more than 50%. We have an international business that is still relatively nascent and growing at close to triple-digit rates. The pace of innovation in AI is a tremendous accelerant and has the potential to help us grow beyond gaming as we develop even deeper connections into communication, entertainment, and commerce. In addition to the tailwinds on the top line, all the ingredients for long-term margin expansion are in place. Now, that margin expansion may not be linear, as you can see, with investments that we're making in 2026. But in the long run, we expect to capture operating leverage from COGS, from infrastructure, and our fixed costs.
Naveen Chopra: That's especially true in the United States, where the 18 and over cohort on our platform is growing at more than 50%. We have an international business that is still relatively nascent and growing at close to triple-digit rates. The pace of innovation in AI is a tremendous accelerant and has the potential to help us grow beyond gaming as we develop even deeper connections into communication, entertainment, and commerce. In addition to the tailwinds on the top line, all the ingredients for long-term margin expansion are in place. Now, that margin expansion may not be linear, as you can see, with investments that we're making in 2026. But in the long run, we expect to capture operating leverage from COGS, from infrastructure, and our fixed costs.
Speaker #2: We have an international business that is still relatively nascent and growing at close to triple-digit rates. And the pace of innovation in AI is a tremendous accelerant and has the potential to help us grow beyond gaming as we develop even deeper connections in the communication, entertainment, and commerce.
Speaker #2: And in addition to the tailwinds on the top line, all the ingredients for long-term margin expansion are in place. Now, that margin expansion may not be linear, as you can see with investments that we're making in 2026.
Speaker #2: But in the long run, we expect to capture operating leverage from COGS, from infrastructure, and our fixed costs. So as I said, our conviction in the ability to drive very healthy, top-line growth and bottom-line margin expansion continues to grow.
Naveen Chopra: So as I said, our conviction in the ability to drive very healthy top line growth and bottom line margin expansion continues to grow. Now, at the same time, we've learned that it's difficult to predict exactly where this business will land 12 months out. I mean, if you look back at 2025, when Roblox set guidance, Steal a Brainrot and Grow a Garden had not even launched. And that's created a situation where the company has had to provide relatively conservative guidance. I don't think that's helpful to investors, and it's certainly not helpful to day-to-day operation of our business. So we're going to get out of that cycle. We're going to give everyone a long runway. We're providing detailed guidance for 2026, but as we get into 2027, you'll see us starting to guide one quarter at a time.
Naveen Chopra: So as I said, our conviction in the ability to drive very healthy top line growth and bottom line margin expansion continues to grow. Now, at the same time, we've learned that it's difficult to predict exactly where this business will land 12 months out. I mean, if you look back at 2025, when Roblox set guidance, Steal a Brainrot and Grow a Garden had not even launched. And that's created a situation where the company has had to provide relatively conservative guidance. I don't think that's helpful to investors, and it's certainly not helpful to day-to-day operation of our business. So we're going to get out of that cycle. We're going to give everyone a long runway. We're providing detailed guidance for 2026, but as we get into 2027, you'll see us starting to guide one quarter at a time.
Speaker #2: Now, at the same time, we've learned that it's difficult to predict exactly where this business will land 12 months out. I mean, if you look back at 2025, when Roblox set guidance, Steel of Brainrot and Grow a Garden had not even launched.
Speaker #2: And that's created a situation where the company has had to provide relatively conservative guidance. I don't think that's helpful to investors, and it's certainly not helpful to the day-to-day operation of our business.
Speaker #2: So, we're going to get out of that cycle. We're going to give everyone a long runway. We're providing detailed guidance for 2026. But as we get into 2027, you'll see us starting to guide one quarter at a time.
Speaker #2: So let's talk about 2026. We're expecting bookings growth of 22 to 26%. Those estimates are informed by the quality of the users that we saw come to our platform in 2025.
Naveen Chopra: So let's talk about 2026. We're expecting bookings growth of 22 to 26%. Those estimates are informed by the quality of the users that we saw come to our platform in 2025. It's informed by recent content trends that we've seen in early 2026. It reflects our confidence in the adoption of our age checking technology and a number of things that we have planned in our roadmap related to our economy, discovery capabilities, and many other features. Now, importantly, our bookings guidance does not assume, because we wouldn't be able to predict it, another viral hit of the magnitude of a Grow a Garden or a Steal a Brainrot. Now, when it comes to margins, we're expecting at the high end of our bookings guidance, margins to be relatively flat year-over-year.
Naveen Chopra: So let's talk about 2026. We're expecting bookings growth of 22 to 26%. Those estimates are informed by the quality of the users that we saw come to our platform in 2025. It's informed by recent content trends that we've seen in early 2026. It reflects our confidence in the adoption of our age checking technology and a number of things that we have planned in our roadmap related to our economy, discovery capabilities, and many other features. Now, importantly, our bookings guidance does not assume, because we wouldn't be able to predict it, another viral hit of the magnitude of a Grow a Garden or a Steal a Brainrot. Now, when it comes to margins, we're expecting at the high end of our bookings guidance, margins to be relatively flat year-over-year.
Speaker #2: It's informed by recent content trends that we've seen in early 2026. It reflects our confidence in the adoption of our age-checking and a number of things that we have, technology-wise.
Speaker #2: Planned in our roadmap related to our economy discovery capabilities and many other features. Now, importantly, our bookings guidance does not assume—because we wouldn't be able to predict it—another viral hit of the magnitude of a Grow a Garden or a Steel of Brainrot.
Speaker #2: Now, when it comes to margins, we're expecting that at the high end of our bookings guidance, margins will be relatively flat year over year. At the low end of bookings, we are estimating a slight year-over-year decline in margin.
Naveen Chopra: At the low end of bookings, we are estimating a slight year-over-year decline in margin. That's driven by the increase in the DevX rate that we announced last year, and we'll see a full year impact of that in 2026. It incorporates investments that we've talked about related to continued growth in users and engagement, and also AI workloads. And we're also planning to invest more aggressively in safety marketing to better educate our users, parents, and other constituents about everything we're doing to ensure that Roblox remains a leader in online safety. And we are funding a decent chunk of those investments through operating leverage on COGS and fixed costs. Our guidance also implies another year of strong free cash flow growth. In fact, at the midpoint of our guidance range, we're estimating 26% year-over-year growth in free cash flow.
Naveen Chopra: At the low end of bookings, we are estimating a slight year-over-year decline in margin. That's driven by the increase in the DevX rate that we announced last year, and we'll see a full year impact of that in 2026. It incorporates investments that we've talked about related to continued growth in users and engagement, and also AI workloads. And we're also planning to invest more aggressively in safety marketing to better educate our users, parents, and other constituents about everything we're doing to ensure that Roblox remains a leader in online safety. And we are funding a decent chunk of those investments through operating leverage on COGS and fixed costs. Our guidance also implies another year of strong free cash flow growth. In fact, at the midpoint of our guidance range, we're estimating 26% year-over-year growth in free cash flow.
Speaker #2: That's driven by the increase in the DevEx rate that we announced last year, and we'll see a full-year impact of that in 2026. It incorporates investments that we've talked about related to continued growth in users and engagement, and also AI workloads.
Speaker #2: And we're also planning to invest more aggressively in safety marketing to better educate our users, parents, and other constituents about everything we're doing to ensure that Roblox remains a leader in online safety.
Speaker #2: Now, we are funding a decent chunk of those investments through operating leverage on COGS and fixed costs. Our guidance also implies another year of strong free cash flow growth.
Speaker #2: In fact, at the midpoint of our guidance range, we're estimating 26% year-over-year growth in free cash flow. That includes a slight uptick in CapEx spend relative to last year, as we are continuing to land GPUs in our own data centers and also navigating the recent inflation in memory prices.
Naveen Chopra: That includes a slight uptick in CapEx spend relative to last year, as we are continuing to land GPUs in our own data centers and also navigating the recent inflation in memory prices. So overall, we see 2026 as another year of strong growth on top of a spectacular 2025. We're making investments in our creators, in our infrastructure, in our safety, all of which sets us up for future shareholder value creation in the form of long-term growth and margin expansion. With that, we'll open the line for questions.
Naveen Chopra: That includes a slight uptick in CapEx spend relative to last year, as we are continuing to land GPUs in our own data centers and also navigating the recent inflation in memory prices. So overall, we see 2026 as another year of strong growth on top of a spectacular 2025. We're making investments in our creators, in our infrastructure, in our safety, all of which sets us up for future shareholder value creation in the form of long-term growth and margin expansion. With that, we'll open the line for questions.
Speaker #2: So overall, we see 2026 as another year of strong growth on top of a spectacular 2025. We're making investments in our creators, in our infrastructure, in our safety, all of which sets us up for future shareholder value creation in the form of long-term growth and margin expansion.
Speaker #2: With that, we'll open the line for questions.
Speaker #1: Thank you. At this time, if you would like to ask a question, press star, then the number one on your telephone. To withdraw your question, simply press star one again.
Operator: Thank you. At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again. Once your line is open, we ask that you present all questions upfront to our speakers. We will pause for just a moment to compile the Q&A roster. We'll take our first question from the line of Ken Gawrelski with Wells Fargo. Please go ahead.
Operator: Thank you. At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again. Once your line is open, we ask that you present all questions upfront to our speakers. We will pause for just a moment to compile the Q&A roster. We'll take our first question from the line of Ken Gawrelski with Wells Fargo. Please go ahead.
Speaker #1: Once your line is open, we ask that you present all questions upfront to our speakers. We will pause for just a moment to compile the Q&A roster.
Speaker #1: We'll take our first question from the line of Ken Gorelski with Wells Fargo. Please go ahead.
Speaker #1: ahead. Thank you very
Ken Gawrelski: Thank you very much for the opportunity to ask questions. Appreciate it. Two, if I may. First, maybe one, could you talk about... Could you give a little bit more color on, you know, the elements that inform your outlook for the bookings outlook for the year? I think it certainly has been a bit better than, you know, than feared. Could you talk about... I know you're saying that you don't assume any big viral hit, but, like, what- how much visibility do you have kind of beyond the first quarter into content schedules and releases? And kind of what informs your conviction in that guidance?
Ken Gawrelski: Thank you very much for the opportunity to ask questions. Appreciate it. Two, if I may. First, maybe one, could you talk about... Could you give a little bit more color on, you know, the elements that inform your outlook for the bookings outlook for the year? I think it certainly has been a bit better than, you know, than feared. Could you talk about... I know you're saying that you don't assume any big viral hit, but, like, what- how much visibility do you have kind of beyond the first quarter into content schedules and releases? And kind of what informs your conviction in that guidance?
Speaker #2: much for the opportunity to ask a question. I appreciate it. Two, if I may. First, maybe one, could you talk about, could you give a little bit more color on the elements that inform your outlook for the bookings outlook for the year?
Speaker #2: I think it was, it certainly has been a bit better than feared. Could you talk about, I know you're saying that you don't assume any big viral hit, but how much visibility do you have kind of beyond the first quarter into content schedules and releases and kind of what informs your conviction in that guidance?
Speaker #2: And then the second one, maybe just—could you elaborate a little bit more on the—you said the increased, better opportunity to target the 18-plus, and maybe within that, could you please talk a little bit about the recent developments with Genie and AI gaming? Just how does that inform your view and help or hurt, and how are you going to use AI to make the platform better for developers?
Ken Gawrelski: And then the second one, maybe just could you elaborate a little bit more on the opportunity you said, the increased opportunity, the better opportunity to target the 18 plus. And maybe within that kind of, if you could please talk a little bit about, you know, the recent developments with Genie and AI gaming. Just, you know, how does that inform your view and help, hurt, you know, how are you going to use AI to make the platform better for developers? Thank you.
Ken Gawrelski: And then the second one, maybe just could you elaborate a little bit more on the opportunity you said, the increased opportunity, the better opportunity to target the 18 plus. And maybe within that kind of, if you could please talk a little bit about, you know, the recent developments with Genie and AI gaming. Just, you know, how does that inform your view and help, hurt, you know, how are you going to use AI to make the platform better for developers? Thank you.
Speaker #2: Thank you.
Speaker #3: Hey, it's Dave. I'll kick off a little on the first question, pass it over to Naveen, and then come back on the second question.
Naveen Chopra: Hey, it's Dave. I'll kick off a little on the first question, pass it over to Naveen, and then come back on the second question. You know, we have a lot of internal leading indicators we can see that, you know, somewhat correlate to the health of our system, and part of that is content diversity.
David Baszucki: Hey, it's Dave. I'll kick off a little on the first question, pass it over to Naveen, and then come back on the second question. You know, we have a lot of internal leading indicators we can see that, you know, somewhat correlate to the health of our system, and part of that is content diversity.
Speaker #3: We have a lot of internal leading indicators. We can see that somewhat correlate to the health of our system. And part of that is content diversity, content distribution, content velocity, and types of content that are hitting different age ranges and genres.
David Baszucki: ... content distribution, content velocity, and types of content that are hitting different age ranges and genres, and we see a lot of health in that. So from just a high level predictive view, that is one confidence inspiring thing we would see. I'll hand it over to Naveen on more of the modeling and the makeup of our bookings forecast.
David Baszucki: ... content distribution, content velocity, and types of content that are hitting different age ranges and genres, and we see a lot of health in that. So from just a high level predictive view, that is one confidence inspiring thing we would see. I'll hand it over to Naveen on more of the modeling and the makeup of our bookings forecast.
Speaker #3: And we see a lot of health in that. So from just the high-level predictive view, that is one confidence-inspiring thing we would see. I'll hand it over to Naveen on more of the modeling and the makeup of our bookings forecast.
Speaker #3: And we see a lot of health in that. So from just the high-level predictive view, that is one confidence-inspiring thing we would see. I'll hand it over to Naveen on more of the modeling and the makeup of our bookings forecast.
Speaker #4: Yeah, thanks, Dave. I mean, I'll really kind of put a finer point on what Dave said, and then a little bit of what I said in my opening remarks.
Naveen Chopra: Yeah, thanks, Dave. I mean, I'll really kind of put a finer point on what Dave said, and then a little bit of what I said in my opening remarks. You know, the content dynamic that Dave mentioned, I mean, we saw both in Q4, sort of an increasing diversity of content. We noted in our shareholder letter that experiences outside of our top 10 are growing at an even faster rate than they were in Q3, and that's true both with respect to engagement and booking. So that's something we really like to see just, you know, spreading the growth around, if you will. And we've continued to see similar trends in early 2026, and we like both the diversity of content, but also the freshness of the content.
Naveen Chopra: Yeah, thanks, Dave. I mean, I'll really kind of put a finer point on what Dave said, and then a little bit of what I said in my opening remarks. You know, the content dynamic that Dave mentioned, I mean, we saw both in Q4, sort of an increasing diversity of content. We noted in our shareholder letter that experiences outside of our top 10 are growing at an even faster rate than they were in Q3, and that's true both with respect to engagement and booking. So that's something we really like to see just, you know, spreading the growth around, if you will. And we've continued to see similar trends in early 2026, and we like both the diversity of content, but also the freshness of the content.
Speaker #4: The content dynamic that Dave mentioned—I mean, we saw both in Q4 an increasing diversity of content. We noted in our shareholder letter that experiences outside of our top 10 are growing at an even faster rate than they were in Q3.
Speaker #4: And that's true both with respect to engagement and bookings. So that's something we really like to see just spreading the growth around, if you will.
Speaker #4: And we've continued to see similar trends in early 2026. We like both the diversity of content, but also the freshness of the content.
Speaker #4: So there have been, even not necessarily something as big as a Grow a Garden or a Steel of Brainrot, but there have been new titles come in that have grown in a healthy way, which gives us a lot of confidence in the power of the platform.
Naveen Chopra: So there have been, you know, even not necessarily something as big as a Grow a Garden or a Steal a Brainrot, but there have been new titles come in that have grown in a healthy way, which, you know, gives us a lot of confidence in the power of the platform. I also mentioned the quality of the users that we saw in 2025. You know, there was some uncertainty in that period of very high growth. You know, are these sort of low-calorie users that are gonna come in and disappear?
Naveen Chopra: So there have been, you know, even not necessarily something as big as a Grow a Garden or a Steal a Brainrot, but there have been new titles come in that have grown in a healthy way, which, you know, gives us a lot of confidence in the power of the platform. I also mentioned the quality of the users that we saw in 2025. You know, there was some uncertainty in that period of very high growth. You know, are these sort of low-calorie users that are gonna come in and disappear?
Speaker #4: I also mentioned the quality of the users that we saw in 2025. There was some uncertainty in that period of very high growth. Are these sort of low-calorie users that are going to come in and disappear?
Speaker #4: But when we look at what has happened on the platform, the behavior of the new users that came to Roblox in Q3, Q4, they largely look like our core users.
Naveen Chopra: But when we look at what has happened on the platform, the behavior of the new users that came to Roblox in Q3, Q4, you know, they largely look like our core users, and that's true when you think about, you know, how they engage, how they spend, how they retain. So that gives us confidence in, you know, how to think about the business over the next few quarters. You know, all that being said, there is still uncertainty, trying to predict exactly where things are gonna land 12 months out. That's the reason we don't think annual guidance is the right approach long term. We are using a slightly wider guidance range for 2026 than what we've used in the past, which kind of reflects some of that uncertainty.
Naveen Chopra: But when we look at what has happened on the platform, the behavior of the new users that came to Roblox in Q3, Q4, you know, they largely look like our core users, and that's true when you think about, you know, how they engage, how they spend, how they retain. So that gives us confidence in, you know, how to think about the business over the next few quarters. You know, all that being said, there is still uncertainty, trying to predict exactly where things are gonna land 12 months out. That's the reason we don't think annual guidance is the right approach long term. We are using a slightly wider guidance range for 2026 than what we've used in the past, which kind of reflects some of that uncertainty.
Speaker #4: And that's true when you think about how they engage, how they spend, how they retain. So that gives us confidence in how to think about the business over the next few quarters.
Speaker #4: All that being said, there is still uncertainty trying to predict exactly where things are going to land 12 months out. That's the reason we don't think annual guidance is the right approach long-term.
Speaker #4: We are using a slightly wider guidance range for 2026 than what we've used in the past, which kind of reflects some of that uncertainty.
Speaker #4: And then, importantly, as I said, we are not building into our guidance an assumption of a massive viral hit the size of a Grow a. We’re optimistic that things like that will happen again, but since we can’t predict them, they’re not built into our guidance.
Naveen Chopra: Then importantly, as I said, we are not building into our guidance an assumption of a massive viral hit the size of a Grow a Garden or a Steal a Brainrot. We're optimistic that things like that will happen again, but since we can't predict them, they're not built into our guidance. Dave, do you want to take the second question?
Naveen Chopra: Then importantly, as I said, we are not building into our guidance an assumption of a massive viral hit the size of a Grow a Garden or a Steal a Brainrot. We're optimistic that things like that will happen again, but since we can't predict them, they're not built into our guidance. Dave, do you want to take the second question?
Speaker #4: Dave, do you want to take the second question?
Speaker #3: Hey, and then just on the AI future, and I highlighted a little that we're optimistic we're going to see an expansion of the definition of really what is gaming and AI is going to power that.
David Baszucki: Hey, and then just on the AI future, and I, I highlighted a little that we're optimistic we're going to see an expansion of the definition of, of really what is gaming, and AI is going to power that. I'll step back, though, to our mission, and our mission is to connect 1 billion people every day with optimism and civility. And I'll highlight the word connect, which means bring multiple people together to play, to learn, to work. For the last, really, since we've gone public, we've been sharing the visionary spec we've been building, which is many, many people coming together in physically simulated environments, within games to play.
David Baszucki: Hey, and then just on the AI future, and I, I highlighted a little that we're optimistic we're going to see an expansion of the definition of, of really what is gaming, and AI is going to power that. I'll step back, though, to our mission, and our mission is to connect 1 billion people every day with optimism and civility. And I'll highlight the word connect, which means bring multiple people together to play, to learn, to work. For the last, really, since we've gone public, we've been sharing the visionary spec we've been building, which is many, many people coming together in physically simulated environments, within games to play.
Speaker #3: I'll step back, though, to our mission. And our mission is to connect a billion people every day with optimism and civility. And I'll highlight: bring multiple people together to play, to learn, to work.
Speaker #3: And for the last, really, since we’ve gone public, we’ve been sharing the visionary spec we’ve been building, which is many, many people coming together in physically simulated environments within games to play.
Speaker #3: We've started adding the notion of adding both NPCs as well as people to those environments making those environments more and more photorealistic and finally making those environments one in which in real time, people can create modify and change the environment.
David Baszucki: We've started adding the notion of adding both NPCs as well as people to those environments, making those environments more and more photorealistic, and finally, making those environments one in which, in real time, people can create, modify, and change the environment. So we're staying with that stack, that spec, and we're, you know, as we showed on X, yesterday, starting to use AI up and down the stack, upsampling 3D to bring things more to life, training NPCs with the 13 billion hours of not just video data, but intrinsic 3D world data. And we highlighted, yesterday, our internal world model team and what they've done using not just video data, but internal Roblox data, to build internal world models that we think we can use both for creation and whatever.
David Baszucki: We've started adding the notion of adding both NPCs as well as people to those environments, making those environments more and more photorealistic, and finally, making those environments one in which, in real time, people can create, modify, and change the environment. So we're staying with that stack, that spec, and we're, you know, as we showed on X, yesterday, starting to use AI up and down the stack, upsampling 3D to bring things more to life, training NPCs with the 13 billion hours of not just video data, but intrinsic 3D world data. And we highlighted, yesterday, our internal world model team and what they've done using not just video data, but internal Roblox data, to build internal world models that we think we can use both for creation and whatever.
Speaker #3: So we're staying with that spec. That spec. And we're, as we showed on X yesterday, starting to use AI up and down the stack.
Speaker #3: Upsampling 3D to bring things more to life, training NPCs with the 13 billion hours of not just video data, but intrinsic 3D world data and we highlighted yesterday our internal world model team and what they've done using not just video data but internal Roblox data to build internal world models that we think we can use both for creation and whatever.
Speaker #3: I will highlight one thing, and that's very important to the spec we're designing. We're building multiplayer platform technology. We're building stuff that brings people together.
David Baszucki: I will highlight one thing, and that's very important to the spec we're designing. We're building multiplayer platform technology. We're building stuff that brings people together, and a lot of the current work that you see out there is operating in video latent space rather than synchronized 3D multiplayer cloud space. I would just cautiously highlight investors to understand the difference of that. You can read our recent tweet on X. That said, we continue to be optimistic about hybridizing and putting together many AI components to build the stack we're talking about.
David Baszucki: I will highlight one thing, and that's very important to the spec we're designing. We're building multiplayer platform technology. We're building stuff that brings people together, and a lot of the current work that you see out there is operating in video latent space rather than synchronized 3D multiplayer cloud space. I would just cautiously highlight investors to understand the difference of that. You can read our recent tweet on X. That said, we continue to be optimistic about hybridizing and putting together many AI components to build the stack we're talking about.
Speaker #3: And a lot of the current work that you see out there is operating in video latent space, rather than synchronized 3D multiplayer cloud space.
Speaker #3: I would just cautiously highlight for investors to understand the difference of that. You can read our recent tweet on X. That said, we continue to be optimistic about hybridizing and putting together many AI components to build the stack we're talking about.
Speaker #3: about. Your next
Speaker #1: Thank
Speaker #1: you.
Eric Sheridan: Thank you.
Ken Gawrelski: Thank you.
Operator: Your next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.
Operator: Your next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.
Speaker #5: question comes from the line of Eric Sheridan with Goldman Sachs. Please go
Speaker #5: ahead.
Eric Sheridan: Thanks so much for taking the question, and appreciate all the disclosure in the materials and especially the shift around the guidance philosophy. Dave, I have one for you. The journey you've been on with respect to discovery on the platform over the last 12 months, what have been the key lessons you've learned about the opportunity that sits in front of you, based on what you've learned about the evolution of discovery, and how does that align with your strategic priorities, either for the platform or individual products, as you look out over the next couple of years? Thanks so much.
Eric Sheridan: Thanks so much for taking the question, and appreciate all the disclosure in the materials and especially the shift around the guidance philosophy. Dave, I have one for you. The journey you've been on with respect to discovery on the platform over the last 12 months, what have been the key lessons you've learned about the opportunity that sits in front of you, based on what you've learned about the evolution of discovery, and how does that align with your strategic priorities, either for the platform or individual products, as you look out over the next couple of years? Thanks so much.
Speaker #1: And appreciate all the disclosure in Thanks so much for taking the question. the materials and especially the shift around the guidance philosophy. Dave, I have one for you.
Speaker #1: The journey you've been on with respect to Discovery on the platform over the last 12 months, what have been the key lessons you've learned about the opportunity that sits in front of you based on what you've learned about the evolution of Discovery?
Speaker #1: And how does that align with your strategic priorities either for the platform or individual products as you look out over the next couple of years?
Speaker #1: Thanks so much.
David Baszucki: ... Discovery is a really hard problem to do right, and we believe being transparent in it is very important. We're, as much as possible, trying to optimize discovery, not for short-term gain, but for long-term gain. And that's both long-term gain in user engagement, as well as long-term gain in platform health and creator health. And any efforts to optimize discovery in the short term may not be optimal for long-term enterprise value and the health of our system. So figuring out how to personalize discovery for every user in a way that connects great users with great content in the long term, is what we've been focusing on.
David Baszucki: ... Discovery is a really hard problem to do right, and we believe being transparent in it is very important. We're, as much as possible, trying to optimize discovery, not for short-term gain, but for long-term gain. And that's both long-term gain in user engagement, as well as long-term gain in platform health and creator health. And any efforts to optimize discovery in the short term may not be optimal for long-term enterprise value and the health of our system. So figuring out how to personalize discovery for every user in a way that connects great users with great content in the long term, is what we've been focusing on.
Speaker #3: really hard problem to do right. And we believe being transparent in Discovery is a it is very important. We're as much as possible trying to optimize Discovery not for long-term gain.
Speaker #3: short-term gain, but for gain in user engagement as well as long-term And that's both long-term gain in platform health and creator health. And any efforts to optimize Discovery in the short term may not be optimal for long-term enterprise value and the health of our system.
Speaker #3: how to personalize Discovery So figuring out for every user in a way that connects great users with great content in the long term is what we've been focusing on.
Speaker #3: What we've seen as a result, as I mentioned, is more good content reaching more great users. An increased robustness in the diversity of our content mix in a way that we believe is very, very healthy.
David Baszucki: What we've seen as a result, as I mentioned, is more good content reaching more great users, an increased robustness in the diversity of our content mix, in a way that we believe is very, very healthy, and also future opportunities. So stay tuned with moments. We believe for many users, browsing in-game experiences will more and more be a complement to our discovery. So it's a, it's a long-term journey, and we'll keep getting better at it.
David Baszucki: What we've seen as a result, as I mentioned, is more good content reaching more great users, an increased robustness in the diversity of our content mix, in a way that we believe is very, very healthy, and also future opportunities. So stay tuned with moments. We believe for many users, browsing in-game experiences will more and more be a complement to our discovery. So it's a, it's a long-term journey, and we'll keep getting better at it.
Speaker #3: also future opportunities. So stay tuned And with Moments. We believe for many users, browsing in-game experiences will more and more be a complement to our Discovery.
Speaker #3: long-term journey. And we'll keep So it's a getting better at
Speaker #3: it.
Omar Dessouky: Thanks so much.
Eric Sheridan: Thanks so much.
Speaker #5: Our next question Thanks so comes from the line of Matthew Cost much. with Morgan Stanley. Please go
Operator: Our next question comes from the line of Matthew Cost with Morgan Stanley. Please go ahead.
Operator: Our next question comes from the line of Matthew Cost with Morgan Stanley. Please go ahead.
Speaker #5: ahead. Great.
Speaker #6: Thanks so much for taking the questions. I have two maybe one for Naveen to start. I think that the gross margins that you showed in the quarter were, I think, the second strongest that we can see going back even to 2020.
Matthew Cost: Great, thanks so much for taking the questions. I have two, maybe, one for Naveen to start. I think the gross margins that you showed in the quarter were, I think, the second strongest that we can see going back even to 2020, I think, was the only time you did better. When we think about that improvement to gross margins, is that a function in the fourth quarter of a shift towards direct payments or any other moving pieces? And could you just give us an update on kind of the direct payment initiative? And then a second one for Dave, if I could.
Matthew Cost: Great, thanks so much for taking the questions. I have two, maybe, one for Naveen to start. I think the gross margins that you showed in the quarter were, I think, the second strongest that we can see going back even to 2020, I think, was the only time you did better. When we think about that improvement to gross margins, is that a function in the fourth quarter of a shift towards direct payments or any other moving pieces? And could you just give us an update on kind of the direct payment initiative? And then a second one for Dave, if I could. I think the detail on the blog post that you've shared so far on this call about the work you're doing with, with AI and world models is, is incredibly helpful.
Speaker #6: better. When we think about that I think it was the only time you did improvement to gross margins, is that a function in the fourth quarter of a shift towards direct payments or any other moving pieces?
Speaker #6: And could you just give us an update on kind of the direct payment initiative? And then a second one for Dave, if I could.
Matthew Cost: I think the detail on the blog post that you've shared so far on this call about the work you're doing with, with AI and world models is, is incredibly helpful. And I want to put a finer point on, on kind of the concerns that we've seen coming up in the market over the past week about the potential for, you know, disruption to your business from other, you know, advances from, with AI coming from other companies out there in the space. And I wonder if you could respond to those concerns and, and, you know, what you see as the, the differentiating factors that, that protect Roblox. I think the commentary you made a moment ago about, you know, multiplayer versus non was, was really helpful, but if you could expand on that. Thank you so much.
Speaker #6: I think the detail on the blog post that you've shared so far on this call about the work you're doing with AI and world models is incredibly helpful.
Speaker #6: And I want to put a finer point on, kind of, the concerns that we've seen coming up in the market over the past week about the potential for disruption to your business from other advances with AI coming from other companies out there in the space.
Matthew Cost: And I want to put a finer point on, on kind of the concerns that we've seen coming up in the market over the past week about the potential for, you know, disruption to your business from other, you know, advances from, with AI coming from other companies out there in the space. And I wonder if you could respond to those concerns and, and, you know, what you see as the, the differentiating factors that, that protect Roblox. I think the commentary you made a moment ago about, you know, multiplayer versus non was, was really helpful, but if you could expand on that. Thank you so much.
Speaker #6: And I wonder if you could respond to those concerns and what you see as the differentiating factors that protect Roblox. I think the commentary you made a moment ago about multiplayer versus non was really helpful.
Speaker #6: you so But if you could expand on that. Thank much.
Speaker #4: Yeah. Hey, Matt. Thanks for the question. I'd really point to two things in relation to your question on gross margin in the quarter. One, as you hypothesized, we did get some tailwind from COGS.
Naveen Chopra: Yeah. Hey, Matt, thanks for the question. I'd really point to two things in relation to your question on gross margin in the quarter. One, as you hypothesized, we did get some tailwind from COGS. I think as we've spoken about in the past, we are doing a number of things in the product to try to steer the purchase of Robux to lower cost platforms, and that honestly performed better than we anticipated in Q4, and that was very helpful from a margin perspective. The other source of margin expansion in the quarter was really bookings growth. Bookings came in also better than expected, which gave us powerful leverage against fixed costs.
Naveen Chopra: Yeah. Hey, Matt, thanks for the question. I'd really point to two things in relation to your question on gross margin in the quarter. One, as you hypothesized, we did get some tailwind from COGS. I think as we've spoken about in the past, we are doing a number of things in the product to try to steer the purchase of Robux to lower cost platforms, and that honestly performed better than we anticipated in Q4, and that was very helpful from a margin perspective. The other source of margin expansion in the quarter was really bookings growth. Bookings came in also better than expected, which gave us powerful leverage against fixed costs.
Speaker #4: past, we are doing a number of things in the product to try to steer the I think as we've spoken about in the purchase of Robux to lower-cost platforms.
Speaker #4: And that honestly performed better than we anticipated in Q4. And that was very helpful from a margin perspective. The other source of margin expansion in the quarter was really bookings growth.
Speaker #4: Bookings came in also better than expected, which gave us powerful leverage against fixed costs. When we look forward—and I think I spoke about this in relation to 2026 margins—we do continue to expect improvement in COGS rates as we are able to shift more and more of the business to lower-cost platforms.
Naveen Chopra: When we look forward, and I think I spoke about this in relation to 2026 margins, we do continue to expect improvement in COGS rates as we are able to shift more and more of the business to lower cost platforms. You know, that's not going to be necessarily linear. There will be, you know, places and points in time where we're able to be more or less aggressive on that. But in the long run, we do see that as a source of additional margin expansion in the business. Dave, on AI?
Naveen Chopra: When we look forward, and I think I spoke about this in relation to 2026 margins, we do continue to expect improvement in COGS rates as we are able to shift more and more of the business to lower cost platforms. You know, that's not going to be necessarily linear. There will be, you know, places and points in time where we're able to be more or less aggressive on that. But in the long run, we do see that as a source of additional margin expansion in the business. Dave, on AI?
Speaker #4: That's not going to be necessarily linear. There will be places and points in time where we're able to be more or less aggressive on that.
Speaker #4: Long run, we do see that as—but in the business, Dave, on a source of additional margin expansion in the—
David Baszucki: Yeah, I would. Hey, this is a great question. I would flip it and share how we think about it internally, which is an opportunity for disruption in the opposite direction, which is an opportunity for the expansion of the Roblox division beyond gaming into the future mix of what is entertainment and where does gaming end, and where do other points begin. You know, 10 years ago, a lot of people in the market used to talk about how is video going to get interactive? And there's been a lot of experiments on that that have been very difficult. But the other direction to think about is how does gaming expand and become part of entertainment? So I would say stay tuned on that.
David Baszucki: Yeah, I would. Hey, this is a great question. I would flip it and share how we think about it internally, which is an opportunity for disruption in the opposite direction, which is an opportunity for the expansion of the Roblox division beyond gaming into the future mix of what is entertainment and where does gaming end, and where do other points begin. You know, 10 years ago, a lot of people in the market used to talk about how is video going to get interactive? And there's been a lot of experiments on that that have been very difficult. But the other direction to think about is how does gaming expand and become part of entertainment? So I would say stay tuned on that.
Speaker #3: would, hey, this is a great question. I would flip it and share how we think Yeah. I about it internally, which is an opportunity for disruption in the opposite direction, which is an opportunity for the expansion of the Roblox vision beyond gaming into the future mix of what is entertainment and where does gaming end and where do other points begin.
Speaker #3: Ten years ago, a lot of people in the market used to talk about how video is going to get interactive. And there have been a lot of experiments on that, that have been very difficult.
Speaker #3: But the other direction to think about is how does gaming expand and become part of entertainment. So I would say stay tuned on that.
Speaker #3: We feel what we're building which is multiplayer technology that runs in the cloud that more and more can load instantly that more and more can be consumed in smaller bite-sized nuggets, will more and more start to blur those two visions.
David Baszucki: We feel what we're building, which is multiplayer technology that runs in the cloud, that more and more can load instantly, that more and more can be consumed in smaller bite-sized nuggets, will more and more start to blur those two visions. World models are interesting. I would say not initially in many of the ways that I think many people think, but we do think they have an opportunity for walking around and painting a world, for example. They have a really interesting opportunity to think about where does video end, and snapshots end, and interactivity begin. And so we, we haven't developed our own models there, but the core of our technology will continue to be the very difficult problem of 3D cloud synchronization and building communication type technology.
David Baszucki: We feel what we're building, which is multiplayer technology that runs in the cloud, that more and more can load instantly, that more and more can be consumed in smaller bite-sized nuggets, will more and more start to blur those two visions. World models are interesting. I would say not initially in many of the ways that I think many people think, but we do think they have an opportunity for walking around and painting a world, for example. They have a really interesting opportunity to think about where does video end, and snapshots end, and interactivity begin. And so we, we haven't developed our own models there, but the core of our technology will continue to be the very difficult problem of 3D cloud synchronization and building communication type technology.
Speaker #3: interesting. I would say not World models are initially in many of the ways that I think many people think. But we do think they have an opportunity for walking around and painting a world, for example.
Speaker #3: They have a really interesting opportunity to think about where does video end and snapshots end and interactivity begin. And so we have developed our own models there.
Speaker #3: But the core of our technology will continue to be the very difficult problem of 3D cloud synchronization and building communication-type technology.
Speaker #5: Our next question comes from the line of Omar Desuki with Bank of America. Please go
Operator: Our next question comes from the line of Omar Dessouky with Bank of America. Please go ahead.
Operator: Our next question comes from the line of Omar Dessouky with Bank of America. Please go ahead.
Speaker #5: ahead.
Speaker #7: Hi. Thanks for taking my
Omar Dessouky: Hi, thanks for taking my question. I wanted to ask more of a financial question. Specifically, how do you think about dilution and stock-based compensation in 2026, with your stock price significantly down compared to last year? Could you explain how having that stock-based comp flexibility is helping you make long-term strategic investments? For example, what investments, besides headcount, have a higher ROI that you would use that cash for? Thanks.
Omar Dessouky: Hi, thanks for taking my question. I wanted to ask more of a financial question. Specifically, how do you think about dilution and stock-based compensation in 2026, with your stock price significantly down compared to last year? Could you explain how having that stock-based comp flexibility is helping you make long-term strategic investments? For example, what investments, besides headcount, have a higher ROI that you would use that cash for? Thanks.
Speaker #7: question. I wanted to ask more of a financial question. Specifically, how do you think about dilution in stock-based compensation in 2026 with your stock price significantly down compared to last year?
Speaker #7: Could you explain how having that stock-based comp flexibility is helping you make long-term strategic investments? For example, what investments besides headcount haven't have a higher ROI that you would use that cash for?
Speaker #7: Thanks.
David Baszucki: I'll go first, and then I'll hand it over to Naveen. You know, internally, we're always running a multiyear model on stock-based comp and dilution at a very, very wide range of stock prices and running the business in a way we feel comfortable. So, we do think about these things and model many dimensions. I'll hand it over to Naveen.
Speaker #3: I'll go first, and then I'll hand it over to Naveen. Internally, we're always running a multi-year model on stock-based comp and dilution at a very, very wide range of stock prices.
David Baszucki: I'll go first, and then I'll hand it over to Naveen. You know, internally, we're always running a multiyear model on stock-based comp and dilution at a very, very wide range of stock prices and running the business in a way we feel comfortable. So, we do think about these things and model many dimensions. I'll hand it over to Naveen.
Speaker #3: And running the business in a way we feel comfortable. So we do think about these things and model many dimensions. I'll hand it
Speaker #3: over to Naveen. Yeah.
Naveen Chopra: Yeah, not a ton to add to that, Omar, but, you know, number one, I would say we look at this at a pretty long-term horizon. I mean that both with respect to the share price and dilution. I mean, sure, dilution at various points in time might spike just because of what's going on with the stock price, but ultimately, we think we're going to create shareholder value, and that will cause dilution to come down over time. If you look at what's happened over the last few years, that's definitely been the case. So, something we pay attention to, but we're much more focused on the operating results of the business because dilution is going to get solved by that.
Naveen Chopra: Yeah, not a ton to add to that, Omar, but, you know, number one, I would say we look at this at a pretty long-term horizon. I mean that both with respect to the share price and dilution. I mean, sure, dilution at various points in time might spike just because of what's going on with the stock price, but ultimately, we think we're going to create shareholder value, and that will cause dilution to come down over time. If you look at what's happened over the last few years, that's definitely been the case. So, something we pay attention to, but we're much more focused on the operating results of the business because dilution is going to get solved by that.
Speaker #4: But number one, I would say we look Not a ton to add to that, Omar. at this at a pretty long-term horizon. And I mean that both with respect to the share price and dilution.
Speaker #4: I mean, sure, dilution at various points in time might spike just because of what's going on with the stock price. But ultimately, we think we're going to create shareholder value.
Speaker #4: And that will cause dilution to come down over time. If you look at what's happened over the last few years, that's definitely been the case.
Speaker #4: So something we pay attention to. But we're much more focused on the operating results of the business because dilution is going to get solved by that.
Speaker #7: Thanks a lot.
Omar Dessouky: Thanks a lot.
Omar Dessouky: Thanks a lot.
Speaker #5: Our next question comes from the line of Brian Pitts with BMO Capital Markets. Please go ahead.
Operator: Our next question comes from the line of Brian Pitz with BMO Capital Markets. Please go ahead.
Operator: Our next question comes from the line of Brian Pitz with BMO Capital Markets. Please go ahead.
Speaker #8: Thanks for the questions. Maybe a quick update on your ramping advertising ambitions and how you're thinking about the potential growth contribution from advertising in 2026.
Brian Pitz: Thanks for the questions. Maybe a quick update on your ramping advertising ambitions and how you're thinking about the potential growth contribution from advertising in 2026. And then, any additional detail about the age verification rollout, which maybe was not as smooth as you hoped. Can you comment on specific challenges and adjustments the team has made to ensure a better transition? Thanks.
Brian Pitz: Thanks for the questions. Maybe a quick update on your ramping advertising ambitions and how you're thinking about the potential growth contribution from advertising in 2026. And then, any additional detail about the age verification rollout, which maybe was not as smooth as you hoped. Can you comment on specific challenges and adjustments the team has made to ensure a better transition? Thanks.
Speaker #8: And then any additional detail about the age verification rollout, which maybe was not as smooth as you hoped, can you comment on specific challenges and adjustments the team has made to ensure a better transition?
Speaker #8: Thanks.
Speaker #3: I'll go
David Baszucki: I'll go first. We sure don't think about it that way. We're very excited and proud the way our age verification rollout has gone, and we're very optimistic that the result of it has been expanded thinking within our team on long term, how to be unique in being a platform that can have all ages on the platform, can monitor and help how communication happens on the platform. I'll say that we gave our internal teams an ambitious goal of rolling this out eventually with no friction, and I would say by doing this, we've found so many other opportunities for optimization that I'm very pleased and happy with the way the rollout's gone.
David Baszucki: I'll go first. We sure don't think about it that way. We're very excited and proud the way our age verification rollout has gone, and we're very optimistic that the result of it has been expanded thinking within our team on long term, how to be unique in being a platform that can have all ages on the platform, can monitor and help how communication happens on the platform. I'll say that we gave our internal teams an ambitious goal of rolling this out eventually with no friction, and I would say by doing this, we've found so many other opportunities for optimization that I'm very pleased and happy with the way the rollout's gone.
Speaker #3: way. We're first. very excited and We sure don't think about it that proud the way our age verification rollout has gone. And we're very optimistic that the result of it has been expanded thinking within our team on long-term how to be unique in being a platform that can have all ages on the platform, can monitor and help how communication happens on the gave our internal teams an platform.
Speaker #3: ambitious goal of rolling this out eventually with I'll say that we no friction. And I would say by doing this, we found so many other opportunities for optimization that I'm very pleased and happy with the way the rollout's gone.
Speaker #4: And then on advertising, we expect our advertising business to show some pretty healthy growth in 2026. That being said, it is still modest. It's not a major contributor to the top line, as you've heard me say in the past.
Naveen Chopra: And then on advertising, you know, we expect our advertising business to show some pretty healthy growth in 2026. That being said, it is still modest. It's not a major contributor to the top line. As you've heard me say in the past, it is going to take some time to grow. I think the long-term opportunity is very exciting given the scale and engagement of our platform, but it is going to take some time, and we are executing carefully with respect to building out those products, the integration of the technology in our platform, working with our creators to expand the amount of inventory that is available, and we're going to continue to be very methodical about that to make sure we're building the business in the right way.
Naveen Chopra: And then on advertising, you know, we expect our advertising business to show some pretty healthy growth in 2026. That being said, it is still modest. It's not a major contributor to the top line. As you've heard me say in the past, it is going to take some time to grow. I think the long-term opportunity is very exciting given the scale and engagement of our platform, but it is going to take some time, and we are executing carefully with respect to building out those products, the integration of the technology in our platform, working with our creators to expand the amount of inventory that is available, and we're going to continue to be very methodical about that to make sure we're building the business in the right way.
Speaker #4: It is going to take some time to grow. I think the long-term opportunity is very exciting given the scale and engagement of our platform.
Speaker #4: But it is going to take some time. And we are executing carefully with respect to building out those products, the integration of the technology in our platform, working with our creators to expand the amount of inventory.
Speaker #4: That is available. And we're going to continue to be very methodical about that to make sure we're building the business in the right
Speaker #4: way. Our next
Speaker #5: question comes from the line of Corey Carpenter with JP Morgan. Please go ahead.
Operator: Our next question comes from the line of Corey Carpenter with J.P. Morgan. Please go ahead.
Operator: Our next question comes from the line of Corey Carpenter with J.P. Morgan. Please go ahead.
Speaker #9: Hey, thanks for the question. I had to maybe first, there's been some reports of interest in maybe building your presence in China. Anything you can comment on there and the type of opportunity that you see?
Corey Carpenter: Hey, thanks for the question. I had, I had two. Maybe first, there's been some reports of interest in maybe building your presence in China. Anything you can comment on there and the type of opportunity that you see? And then just on the age of users, you know, framed it as the larger opportunity given in novel game experiences, given, you know, more younger users than previously reported. You know, the half glass empty view of that, of course, could be that younger users have been tougher to age up on the platform than you expected. So, you know, what's giving you the confidence to invest there, that you can, that you can age up more with users? Thank you.
Cory Carpenter: Hey, thanks for the question. I had, I had two. Maybe first, there's been some reports of interest in maybe building your presence in China. Anything you can comment on there and the type of opportunity that you see? And then just on the age of users, you know, framed it as the larger opportunity given in novel game experiences, given, you know, more younger users than previously reported. You know, the half glass empty view of that, of course, could be that younger users have been tougher to age up on the platform than you expected. So, you know, what's giving you the confidence to invest there, that you can, that you can age up more with users? Thank you.
Speaker #9: And then just on the age of users, frame it as the larger opportunity given in novel game experiences given more younger users than previously reported.
Speaker #9: The half-glass empty view of that, of course, could be that younger users have been tougher to age up on the platform than you expected.
Speaker #9: So what's giving you the confidence to invest there that you can age up more with users? Thank you.
David Baszucki: I'll go first on China. We continue to be a great partner with Tencent, and we continue to see a huge opportunity in China. We've revamped the way we look at China. If we were to go live in China, we would do it in an air-gapped way, and we think our infrastructure is built and designed in a really unique way, that we can abstract and deploy it in multiple places. On our... You know, a couple things about age checking and getting detail on estimated age. The first thing is, it highlights the level of cultural phenomena that Roblox has become. And so, yes, age checks slightly younger than self-reported, but if anything, it highlights a success. You know, I look to a couple things. First, over 50% growth year-over-year, 18+.
Speaker #3: I'll go first on China. We continue to be a great partner with Tencent. And we continue to see a huge opportunity in China. We've revamped the way we look at China.
David Baszucki: I'll go first on China. We continue to be a great partner with Tencent, and we continue to see a huge opportunity in China. We've revamped the way we look at China. If we were to go live in China, we would do it in an air-gapped way, and we think our infrastructure is built and designed in a really unique way, that we can abstract and deploy it in multiple places. On our... You know, a couple things about age checking and getting detail on estimated age. The first thing is, it highlights the level of cultural phenomena that Roblox has become. And so, yes, age checks slightly younger than self-reported, but if anything, it highlights a success. You know, I look to a couple things. First, over 50% growth year-over-year, 18+.
Speaker #3: If we were to go live in China, we would do it in an infrastructure that is built and designed in a really air-gapped way. And we think our unique way.
Speaker #3: We can abstract and deploy it in multiple places. On our a couple of things about age checking and getting detail on estimated age. The first thing is it highlights the level of cultural phenomena that Roblox has become.
Speaker #3: And so yes, age checks slightly younger than self-reported but if anything, it highlights a success. I look to a couple of things. First, over 50% growth year on year 18 plus.
Speaker #3: Two, the platform and technical advantages we've used to get to where we are in under 18 are exactly the same 18 plus. Vertical integration, all the way from cloud to apps to discovery to social graph and beyond, we believe are the same.
David Baszucki: Two, the platform and technical advantages we've used to get to where we are in under 18 are exactly the same 18 plus. Vertical integration, all the way from cloud, to apps, to discovery, to social graph, and beyond, we believe are the same. And ultimately, the tech as well, supporting more and more realistic experiences. So I continue to be absolutely bullish on our 18 and up opportunity.
David Baszucki: Two, the platform and technical advantages we've used to get to where we are in under 18 are exactly the same 18 plus. Vertical integration, all the way from cloud, to apps, to discovery, to social graph, and beyond, we believe are the same. And ultimately, the tech as well, supporting more and more realistic experiences. So I continue to be absolutely bullish on our 18 and up opportunity.
Speaker #3: And ultimately, the tech as well, supporting more and more realistic experiences. So I continue to be absolutely bullish on our 18 and up.
Speaker #3: opportunity. Our
Speaker #5: next question comes from the line of Shweta Kajuria with Wolf Research. Please go ahead.
Operator: Our next question comes from the line of Shweta Khajuria with Wolfe Research. Please go ahead.
Operator: Our next question comes from the line of Shweta Khajuria with Wolfe Research. Please go ahead.
Shweta Khajuria: Hi, this is Andrew Ralph and Shweta. Thanks for taking the question. Just kind of one on the age check rollout. You know, you talked a lot about the penetration, that seems to be going well, but have you noticed any change in behavior or engagement levels for those who have completed age check or who have not yet? And then maybe when you think about the derivative impacts of the age check, is it possible to think about how the older cohorts may be viewing this as a quality-of-life update, and that might be contributing to the engagement levels that you're seeing? Thanks.
Andrew Ralph: Hi, this is Andrew Ralph and Shweta. Thanks for taking the question. Just kind of one on the age check rollout. You know, you talked a lot about the penetration, that seems to be going well, but have you noticed any change in behavior or engagement levels for those who have completed age check or who have not yet? And then maybe when you think about the derivative impacts of the age check, is it possible to think about how the older cohorts may be viewing this as a quality-of-life update, and that might be contributing to the engagement levels that you're seeing? Thanks.
Speaker #8: question. Just kind of one on Hi, this is Andrew Roth from Shweta. Thanks for taking the the age check rollout. We talked a lot about the penetration that seems to be going well.
Speaker #8: But I've noticed the change in behavior or engagement levels for those who have completed age check versus not yet. And then maybe when you think about the derivative impacts of the age check, is it possible to think about how the older cohorts may be viewing this as a quality of life update?
Speaker #8: And that might be contributing to the engagement levels that you're
Speaker #8: saying. Yeah, I'll give one
David Baszucki: Yeah, I'll give one example on why we're excited about this, and that is the more we get into age check interacting with communication, the more we can more accurately matchmake different age bands together. Well, that's one of the factors that makes me so optimistic, is that age, you know, banding or matchmaking in ways that brings the average, you know, older user together, as well as the average 15-year-old together, we believe can be a long-term growth aspect. So we think this is gonna become. It's why we call it the gold standard, actually. And what we've seen after we did this is another very large gaming company announced they're gonna do it. A communication platform announced that they're gonna do it. So we just see this as ultimately the way the world's gonna work.
David Baszucki: Yeah, I'll give one example on why we're excited about this, and that is the more we get into age check interacting with communication, the more we can more accurately matchmake different age bands together. Well, that's one of the factors that makes me so optimistic, is that age, you know, banding or matchmaking in ways that brings the average, you know, older user together, as well as the average 15-year-old together, we believe can be a long-term growth aspect. So we think this is gonna become. It's why we call it the gold standard, actually. And what we've seen after we did this is another very large gaming company announced they're gonna do it.
Speaker #3: example on why we're excited about this. And that is the more we get into age check interacting with communication, the more we can more accurately matchmake different age bands together.
Speaker #3: That's one of the factors that makes me so optimistic is that age banding our matchmaking in ways that brings the average older 15-year-old together we believe can be a long-term growth aspect.
Speaker #3: So we think this is going to be become it's why we call it the gold standard actually. And what we've seen after we did this is another very large gaming company announced they're going to do it.
David Baszucki: A communication platform announced that they're gonna do it. So we just see this as ultimately the way the world's gonna work. We're proud to be one of the first big platforms to do it.
Speaker #3: A communication platform announced they're going to do it. So we just see this as ultimately the way the world's going to work. We're proud to be one of the first big platforms to do
David Baszucki: We're proud to be one of the first big platforms to do it.
Speaker #3: it. Our final question
Operator: Our final question comes from the line of James Heaney with Jefferies. Please go ahead.
Operator: Our final question comes from the line of James Heaney with Jefferies. Please go ahead.
Speaker #5: comes from the line of James Heaney with Jefferies. Please go ahead.
James Heaney: Yeah, great, thanks, guys. Naveen, if we look at the Q1 bookings guide, it looks like a sequential decline greater than 20%, which I think would be one of your bigger sequential slowdowns. Is there anything you're calling out there specifically, or is it just kind of the conservatism that you called out? Anything specific and even maybe what you're seeing so far in Q1? Thanks.
James Heaney: Yeah, great, thanks, guys. Naveen, if we look at the Q1 bookings guide, it looks like a sequential decline greater than 20%, which I think would be one of your bigger sequential slowdowns. Is there anything you're calling out there specifically, or is it just kind of the conservatism that you called out? Anything specific and even maybe what you're seeing so far in Q1? Thanks.
Speaker #9: if we look at the Q1 bookings guide, it Yeah, great. Thanks, guys. Naveen, looks like a sequential decline greater than 20%, which I think would be one of your bigger sequential slowdowns.
Speaker #9: specifically, or is it just kind of the Is there anything you're calling out there conservatism that you called out? Anything specific and even maybe what you're seeing so far in Q1?
Speaker #9: Thanks.
Naveen Chopra: Yeah, I mean, I guess I look at it pretty differently. You know, this is a quarter where we do not have, at this point, a big, new viral hit. And so, you know, to put up 40 to 44% top line growth in the absence of that, I think we should all be very, very excited about what that says about the health of the platform. You know, we said last quarter, that as we started to move past this period of time with huge viral hits, that growth would slow. So I don't think anyone should be surprised by the sequential trend there. If anything, I think we should be really excited about what we're seeing early in the year. I'm gonna turn it over to Dave to close it out.
Naveen Chopra: Yeah, I mean, I guess I look at it pretty differently. You know, this is a quarter where we do not have, at this point, a big, new viral hit. And so, you know, to put up 40 to 44% top line growth in the absence of that, I think we should all be very, very excited about what that says about the health of the platform. You know, we said last quarter, that as we started to move past this period of time with huge viral hits, that growth would slow. So I don't think anyone should be surprised by the sequential trend there. If anything, I think we should be really excited about what we're seeing early in the year. I'm gonna turn it over to Dave to close it out.
Speaker #4: differently. This is a quarter where we do not Yeah, I mean, I guess I look at it pretty big new viral hit. And so to put up 40 to 44 percent have at this point a top-line growth in the absence of that, I think we should all be very, very excited about what that says about the health of the platform.
Speaker #4: that as we started to move past this period of time We said last quarter with huge viral hits that growth would slow, so I don't think anyone should be surprised by the sequential trend there.
Speaker #4: If anything, I think we should be really excited about what we're seeing early in the out.
Speaker #4: year. I'm going to turn it over to Dave to close it
Speaker #3: Hey, thank you all for joining we appreciate the really interesting and thoughtful questions. Thank you all. And we'll look forward to seeing you in a quarter.
Speaker #3: Hey, thank you all for joining we appreciate the really interesting and thoughtful questions. Thank you all. And we'll look forward to seeing you in a quarter.
David Baszucki: Hey, thank you all for joining us on our call today, and we appreciate the really interesting and thoughtful questions. Thank you all, and we'll look forward to seeing you in a quarter.
David Baszucki: Hey, thank you all for joining us on our call today, and we appreciate the really interesting and thoughtful questions. Thank you all, and we'll look forward to seeing you in a quarter.
Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.
