- Roblox shared its company losses of about $176 million.
- CEO of Roblox, David Baszucki, said that the company is peaking its all-time active users and global engagement.
- Roblox plans to go into ‘investment mode’ regardless of facing losses to ensure survivability in the long run.
Roblox, one of the earliest successful metaverses, will heavily invest in their company to future-proof their platform despite huge losses.
On August 9, Roblox released a shareholder letter that explains what caused the losses and what steps they will take to address the issue.
According to the letter, Roblox suffered a loss of $176.4 million during the last three months. The firm reported its losses increased from last year’s quarterly loss of $140.1 million. However, the revenue of Roblox increased to $591.2 million in Q2 2022. This is an increase of 30% from the numbers of the same quarter last year.
Although these negative numbers hurt Roblox financially, the company saw continued growth in its average daily active users by 23% over the last year. Meanwhile, the platform also tallied a 20% increase in hours played.
Meanwhile, David Baszucki, the CEO of Roblox, said the firm continues to grow its user base and engagement globally. The company revealed it is looking into expanding the penetration of Roblox in all age groups and countries.
The report also reveals a comprehensive expenditure table for Q2 2022. According to this, Roblox has spent $135,602 on property and equipment for the year, followed by last year’s spending of $45,368.
In addition to the losses, the report shows that the user life in Q1 2022 changed from 23 months to 25 months. The report reads:
The change resulted in a decrease of $40.9 million in revenue recognized during the three months ended on June 30, 2022. If the estimated user life had not changed, revenue in Q2 2022 would have been $632.1m.
According to the report, Craig Donato, Roblox Chief Business Officer, said the company is investing in employees, increased server capacity, and global data centers.
“We’re very much in investment mode and that’s going to put a little drag on earnings, but these are the right investments for us to make. They will pay off in a three-to-five-year timeframe.”