Roblox Corporation

Good morning. My name is James, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Roblox Q1 2021 Earnings Q&A session. All lines have been placed on mute to prevent any background noise. And after the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you'd like to withdraw your question, please press the pound key. Thank you. I'm now going to hand it over to Anna Yen, Roblox Head of Investor Relations. Anna, you may begin your conference.

Thanks, James. Good morning, everyone, and thank you for joining our Q&A session to discuss Roblox's first quarter 2021 results. With me today is Roblox's CEO, David Bezouki, and CFO, Michael Guthrie. Before we start, I want to remind everybody that yesterday after market closed, we published a shareholder letter and earnings results on our investor relations website at ir.roblox.com. Since the letter provides a lot of details, we will make some brief opening remarks and reserve the rest of the time for your questions. For our webcast participants, please note the question icon at the bottom of your screen where you can type in your questions. We'll do our best to take as many questions as we can today. On today's call, we may be making forward-looking statements, including statements about our future growth rates and business and investment strategies. Any statements that refers to expectations, projections, or other characterizations of future events, including financial projections, future market conditions, or the impact of COVID-19 on our business and on the economy as a whole is a forward-looking statement based on assumptions today. Actual results may differ materially from those expressed in these forward-looking statements, and we make no obligations to update our disclosures. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued yesterday, as well as risks described in our registration statement on Form S-1, particularly the section titled Risk Factors. This information can also be found on other filings with the SEC when available. We will also discuss certain non-GAAP financial measures. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for reported results can be found in our press release issued yesterday, as well as in our supplemental materials copies of which can be found on our IR website. Finally, this call is being webcast and will be archived on our website shortly after. With that, I'm going to turn the call over to Dave.

Thanks, Anna, and thanks for everyone for joining us today. Before we start taking questions, I want to begin by saying that our hearts go out to the people around the world who are still suffering as a result of COVID-19. It appears we're making progress, and it's also clear that this virus is still a global challenge. Like everyone, we want to put these risks behind us as soon as possible. Just this month at Roblox, we're going to begin to open our offices on a limited basis, and we hope that by mid-September our offices can be fully open. This is our first earnings call since our direct listing on March 10th. Yesterday afternoon, we posted our earning results and a letter to all shareholders, as well as supplemental financial and metrics data on our investor relations website. We hope this information was helpful insight into our performance in Q1. It's been an exciting period, and we're looking forward to answering your questions. With that, we'll turn it back over to the operator.

At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for a moment to compile the Q&A roster. And our first question comes from the line of Lexia Quandrian from JP Morgan. Go ahead, please. Your line is open.

Thank you very much. I was wondering if you could give us your update or thoughts on sort of longer-term growth, specifically, you know, in the press release, you did highlight great accomplishments in terms of international expansion and aging up, which I know has been a more near-term and consistent growth driver for you. But when you look longer-term, like what extensions, such as music, you know, advertising, you know, any kind of other sort of, you know, partnerships, you know, what other sort of extensions do you think do you see as more achievable sort of in the intermediate term? Thank you.

Yeah, thanks for your question. Let me just start by saying in the near term and in the longer term, we still see incredible opportunity in the core growth drivers, which is to continue to expand the business geographically and to grow the user base in terms of the age demographic. So we feel like we're nowhere close to being done on those two growth factors, and those still are both short-term goals for us and substantial long-term goals for us to continue to expand. When we look at geographic expansion, in particular in Asia, we have a long way to go all across Europe, and we're still very optimistic about the potential for increased growth in North America and in some of our core markets like the United Kingdom and in Scandinavia. So we still see, you know, if we were to say sticking to our knitting on user growth, aging up, and geographic, those are still really big growth drivers for us over the next few years. In terms of platform extensions, you know, we still are obviously very excited about where the platform can go. We haven't given any specific numbers around brand partnerships, or music, but you've obviously seen some progress. We talked about it in the shareholder letter, and we certainly see longer-term potential for those expansions to our platform as well.

Hey, just riffing off Mike, this is Dave. In Q1, our over-13 DAUs grew by 111%, and our hours are up 128%.

Thank you.

Our next question comes from the line of Brian Nowak with Morgan Stanley. Go ahead, please. Your line is open.

Thanks for taking my question. The first one on China, I know it's very early, but any early learnings from China? As we think about this opportunity, are there any material differences that you see in the China potential user base that could cause the slope of penetration or payer growth to be different than other regions? And then secondly, on aging up, you know, David, that was a good disclosure around the age up you just mentioned on users and time spent. Can you just give us some examples of some of the content that's really driving the aging up of the overall user base to sort of really realize that opportunity? Thanks.

Yeah, I had a couple things just to share. in china we do have a license we are live and we've seen very early signs of what we hope to have happened which is we've seen some developers in china breaking to the top 250 in the world market and we have many many worlds outside of china devs who are now live in china The other thing to note is we've seen consistent growth in South Korea, in Hong Kong, in Russia, in Brazil, and really all around the world. So we can't make any forward-looking predictions on China, but we see a lot of lovely patterns out there. As far as aging up, we continue to be impressed by the quality of the content and the creations that our developers are making, and more and more of the content is helping drive this exciting trend, which we're close to passing, if not passing, Mike can chime in, on having more of our users being 13 and over than under 13. I'll highlight the fun, exciting, and iconic game Piggy, which won our Bloxy Awards, which is extremely appealing to players on our platform of all ages.

Great. Thank you. Our next question comes from the line of Mike Ng with Goldman Sachs. Go ahead, please. Your line is open.

Hi. Good morning. Thank you very much for the question. I just have two. Can you talk a little bit more about the investments in personnel and R&D made in the quarter, specifically which areas of the product roadmap are you investing for now, and how should we think about Roblox's investments in R&D for the rest of this year and over the midterm? And then second, I was just wondering if you could talk a little bit about the April bookings that you guys disclosed. Is that a good way to think about the rest of this second quarter, and how are you thinking about engagement and bookings cadence through the rest of the year? Thank you.

Mike and I will both answer this. I'll talk a bit high level about where we're investing in R&D, then I'll kick it over to Mike for the numbers, and then for April. An exciting thing about our platform is, is the breadth of technology that supports what we're doing and we go all the way from a mobile client to a 3d immersive cloud engine to developer toolkit to back-end infra it's an extremely broad surface area And part of our Roblox philosophy and the way we think about the company is we need to be innovating in many, many areas. It's what has brought us to where we are today. And what we're doing right now behind the scenes is doing that again for five years out. So some of the things we've highlighted in prior calls publicly, safety and civility, not just being defensive, but really leading the industry and creating a civil society on our platform and all the tech behind that, ML, AI, including our human awesome team of over 2000 moderators. Getting into the future of communication, which includes safe and civil, not just text, but voice, and no ship dates there, but lots of great work to come there. Our avatar system, which we've had some early announcements on some of the tech. It's really an early signal, though, for an avatar and identity system that lets everyone be who they want to be, whether it's a fashion model, a soldier, traditional Roblox character, cartoon character. We have this wonderful mix of our clients and our intro working together to really provide these immersive experiences. There's a lot of work going on there. So covering the place where we're investing, it's really manifold. We do invest 80% of our, it's not really invest. We have stayed true to the notion that about 80% of our people are working on product and engineering. We see this going into the foreseeable future. And I've touched on about four tenths of the big areas. I'm not going to go into all of them right now. I'll take it over to Mike, though, to go more into the numbers.

Sure, so a couple of things when we did the forecasting work inside the company for the direct listing. Basically, the underlying assumptions were we looked at all of our core metrics. We obviously were looking at it at a time when we were sort of right in the middle of COVID and we had seen pretty big risks in our business and we made some assumptions around. COVID basically, as a global situation, being out of the system by the end of the second quarter. So in fact, we picked an end date to the pandemic, if you will, when we did our forecasting. That hasn't happened. And so there's obviously still in the second quarter, there's a combination of just core metrics and core growth and improvement in the business. And there's still obviously, you know, the influences of COVID are still in the numbers as well. April bookings overall were very strong, definitely higher than what we expected. And you know somewhere around i don't know 45 to 47 percent of the consensus numbers for the quarter so so april numbers were really strong um when we look at what that means in the medium and longer term i'll just say the following when the when the pandemic started we immediately saw engagement go up right we had a substantial user base at the time who immediately had more time and spent more time on the platform And then we grew users very quickly. And those users have the ability to engage very quickly as well. Because of that, we started to see really strong conversion to payers and really strong monetization. And that's obviously reflected in the step up in bookings that we've seen over the last you know, several quarters. If you look at April, what you will see is Bookings looks to be the highest growth of all of the numbers. Partly that's because Bookings took a while to get going vis-a-vis users and engagement last year. And partly I think it's because we just have, when you get down to that, you know, those are the most, clearly the most engaged users are the ones that end up becoming payers. And so we're just seeing really high conversion and monetization characteristics as we head into the rest of the year.

Great. Thank you very much, Dave and Mike. Much appreciated.

Thanks, Mike.

Thank you.

Our next question comes from the line of Drew Crum with Stifel. Go ahead, please. Your line is open.

Okay, thanks. Good morning, guys. Given your experience around improving payer conversion outside of the U.S. and Canada during 1Q, Can you discuss any early observations around what has worked thus far? And, you know, as economies reopen, how you're thinking about monetization overseas progressing as we move through 21? And then separately, the developer exchange fees have averaged about 18% of bookings the last several quarters. And your comment in the shareholder letter around returning nearly $500 million to the developer community this year, just based on one cue, the math would suggest about $2.7 billion of bookings this year. Does that make sense, or how would you push back on that assumption? Thanks, guys.

We'll do this in the same order. I'll speak a bit about the stickiness of our economy, and then I'll take it back to Mike on the DevEx fees. We developed our DevEx economy over five years ago, and when we did it, the philosophy was to create a system that connects our people on our platform with our developers and allows flexibility in our developers to create amazing content, and then to monetize that in a balanced and freemium way with our player base and the people on our platform. this system has turned out to be enormously powerful. And as different countries have come online, whether it's the US and Canada, or whether it's Philippines, Brazil, and Russia, in all of these countries over time, we've seen the combination of amazing content and the players becoming more embedded in our platform and driving higher and higher bookings for DAU. So there are no... big levers we have been turning except to provide a platform and tools where developers are making increasingly high quality content and that's been driving the engine. We have made some small adjustments over time and we continue to move as much money as we think is financially prudent back to the developer community. An example would be in March where we increase the engagement-based payout rate by approximately 75%, which is driving the money we're transferring to developers based on time engaged in the platform. So no future predictions on where DevEx is going, but this general philosophy of we want to run a lean business and move as much money to our developers as possible, I think you'll see that going forward. And I'll go over to Mike for the rest of that.

One of the outputs of the engagement-based payout model has been to get some economics to developers that are maybe not in the top 100, 200, or even 300. We're seeing out in that, I don't want to call it the long tail, but we've seen developers, let's say, that are early in monetizing on the platform. This has been a real boost to their economics, and in some cases, virtually all or all of their economics come from engagement-based payouts. And that's great because it keeps them engaged in the platform. And as they get better and better at building amazing content that is appealing to a broader user base, they get some feedback. They get some economic feedback from the market, which is really wonderful. And so we have high expectations of the productivity of engagement-based payouts over the next... few years. Related to your question on developer expense, I think what we're really looking at is the Q1 number was Almost $120 million. If you multiply $120 million times four, you're at $480 million. When you're inside a company, we often have these big goals. And I can remember we did an off-site about two years ago where we really challenged ourselves to get to $400 million in engagement-based payouts. actually several years from now. And now we're in a situation now where if things break the right way, we could be at half a billion dollars this year. So I'd say rather than giving ourselves a goal of $480 million, we like the goal of a half a billion dollars.

Yeah, just riffing on that with Mike, that goal at the offsite was for total money to developers. We do believe long-term engagement-based payouts will hit that $400 million. They're a piece of the total developer pay. Yeah.

our next question comes from the line of ryan g with bank of america go ahead please your line is open hey good morning everyone thanks for taking the questions um so first one you know just in terms of identity so advanced skinning layered clothing animations i think these are several of the things you guys are pretty excited about you know around the direct listing so can you talk a little bit about what new technologies such as those that I mentioned, what that enables for the platform, for the users, and for the developers, and maybe how that ultimately flows through the model financially. And then the second question, it's very encouraging to see the older and the international users continue to grow nicely. Pretty remarkable that marketing was only around $50 million last year in 2020. So can you maybe talk about the level of investment, how that may change in 21 going forward as you extend your brand awareness into those areas? Does it require a dedicated sales team or is it more traditional channels? Thank you.

How about you, Avatar? Mike, you do that part. The things we've shipped right now, are very early tech components that ultimately form the foundation for our vision around identity and the avatar. Our vision, and we shared it publicly before, is we really believe everyone on our platform will ultimately be who they want to be. And who you want to be avatar is very important. It's whatever we can imagine. So our vision is everything from cartoon characters to classic Roblox blocky avatars to ultimately AAA avatars that we see around a wide range of immersive 3D experiences. What we're building internally is technology that allows combinatorial excellence, and it includes a system where any piece of clothing works on any avatar, and also where ultimately motion integrates with the system as well, including both captured motion, as well as you can see with our acquisition of Loom AI, a vision for ultimately including your own motion to drive the face of your avatar. So it's still early, and this complements our vision that ultimately our whole avatar system, including clothing, bodies, face, hair, animation, is 100% UGC supported by our creator community. You're going to see over the next year more and more developments along this, and I personally believe it's going to really expand the vision of what Roblox is.

Hey, Ryan. So on the economic side, back to when we wrote the perspective and we did Investor Day, we talked a lot about the characteristics of the metaverse. And what you're getting at is the importance of identity. And so Dave gave you some of the technical investments. It's a really good example of how investments in the platform and the power of the community come together is what we see as the spending on identity right now and what's happening with Avatar. So about three and a half years ago, our split between robots spent in experience versus on investments in catalog or investments in the identity was 80-20. with experience of getting 80%, 20% in the catalog. Since then, we've made the catalog user-generated and made all these investments in the platform, these technical and product investments in the platform. And we've seen it slowly move from 80-20 to actually not slowly, to 75-25. And in the past quarter, it was actually about 70-30. So we see... users are choosing to spend more of their Roblox on their identity. And they're still spending, you know, they're still growing their spending experience. But it's clearly important to them on the Roblox platform to invest in their identity. And as we make more investments in technology and product, what is possible is just going to increase. So I think we're going to see continued strong investment in identity on the platform. As it relates to marketing spend, We've always proudly focused on building great products and believing that there's excellent product market fit. And if you go back to the underlying economic model, we generally talk about four areas of investment. There's the four big cost buckets. There's payment processing, which we talked about. There's personnel, which is 80% engineering and product people. There's the money we share with the developers in the community. And then there's trust and safety and infrastructure. and then everything else we're just you know really really careful about spending and that model has been really efficient for us over the years it's driven really great unit economics and we've i guess been in a situation where we haven't had to spend a lot of money to drive user growth that organic signal to us is one that tells us that the product is is doing well and so i don't think you should expect to see us change that over the next few years

Our next question comes from the line of Matthew Thornton with Truist Securities. Go ahead, please. Your line is open.

Hey, good morning, David. Good morning, Mike. A couple of quick ones for me. I guess first, is there any way to talk about or quantify or give us just any color on kind of what the pipeline looks like for branded experiences, for music experiences, maybe now versus where we were, I don't know, six or 12 months ago, any color there. And then just secondly around subscription, I guess the question is, are we still kind of moving up and to the right in terms of mix and any way to gauge maybe what inning we're in in terms of you know getting subscription until it gets the kind of full penetrated kind of kind of run rate any any color would be helpful as well thanks guys

Yeah, first on the pipeline around immersive experiences, we can't announce anything, but historically, if one looks at what we've done, starting with Lil Nas X, going to Ava Max, going to One World Together, going through Royal Blood at the Bloxy's, there's been enormous progress there, and we're very optimistic that in the future, Being together in an immersive 3D concert with friends is very different than watching on a screen. And as we come back together following this pandemic, I think we've all learned how amazing these types of experiences can be. So we're very optimistic about this. We're not going to announce anything. But more and more technology, both the immersiveness, the ability for audio to be spatialized, ability to talk when in these concerts is going to support more and more amazing experiences. I'll talk a little about subscriptions and I'll take it over to Mike on the numbers. It's also, you know, we have a vision that ultimately, and once again, no shit dates, the types of experiences in the metaverse are going to be supported by engagement, they're going to be supported by transactions, and they're going to be supported by advertising. And when we look at some of the types of experiences that we can imagine on the platform, There will be some experiences that are more and more subscription-supported, just like many of our experiences are premium right now. So there is a range of functionality that we will be rolling out over the next few years to support those types of experiences, and it's very, very early in where we see subscriptions going. That said, our current people who have Roblox Premium retained amazingly well. It's a wonderful source of virtual currency for Robux. And even subscriptions, as we have them right now, are a wonderful, really, way for people to buy Robux and to retain

Hey, Matt. A couple things. One of your questions was on the pipeline of brands and music. And obviously, we're not going to be able to share specifics around pipelines. We made some comments in the shareholder letter on both brands and music. And I would expect that in most quarters over the next several months. we will be making some reference to things that we're doing. If you were to ask Craig Donato and his team, my guess is the pipeline of brands. More and more brands are interested in a platform of our size and scale. It's a way to reach a user base that's large and growing and very engaged. So there's no doubt that brands are quite interested. We gave two examples, three examples, rather, in the shareholder letter. I think one of the things that I like the most about it is that the brands are working with our community to build their experiences. So that's just a really great way, another way for our developers to be able to build cool stuff and see some economics. And so that's just great. Your question about subscription, the only thing I would add to Dave's comments on subscription is that if you're looking at the sources of Roblox purchases, the rate of growth and subscription is faster than the rate of growth of a la carte purchases. But both are still very important to us.

And again, as a reminder, if you'd like to ask a question over the telephone, please press star then one on your telephone keypad. Our next question comes from the line of Brandon Ross with LightShed Partners. Go ahead, please. Your line is open.

Hi, thanks for taking the questions. Maybe just a follow-up on the brands question that you just had prior. Can you talk about two things? One, the role that Roblox is specifically playing in shepherding these brands and media companies onto the platform? And as brands do come on, is that a discreet revenue opportunity for you? And how do you think about sizing the overall advertising opportunity on the platform? And then I have a follow-up.

Sure. We talked about how are we talking to the brands. We do have a dedicated team under Craig's organization that is responsible for brand partnerships. And that is both, quite honestly, inbound but also proactive. calling and coverage of businesses in retail, media, entertainment, etc. They do a great job. And again, as a platform that will be attracted to advertisers, I think we have certain characteristics that are very interesting. Ultimately, the way we do advertising will be largely different than I think anybody else. expected to be different than just a CPM kind of a business. So there's a dedicated team. They are active in the market talking to brands about our platform and what it means to our user community, our level of engagement. This is a user base that's hard to reach, especially in the digital world. linear television is not the right way to reach this audience as well, or certainly not a growing way to reach this audience. So ultimately, we're really optimistic, but it's still really early. And so when you ask about sizing the market. I mean, there's a lot of, um, there are a lot of other companies that more pure advertising model that you could probably use to, to build, to build a model. But for now, you know, I just wouldn't be putting a lot of revenue in the business. Um, in our, in our business plan, we were optimistic about where it could go, but right now we're, you know, it's not as though there's a, you know, a certain deliverable for that team for 2021. And I'll just, um,

riff on Mike a bit looking more forward without giving anything specific from a vision point of view. An exciting thing about brands connecting with people in immersive platforms like Roblox is it's a non-interrupt model. It's a native immersive experience where right now people on our platform are wearing Gucci products, where right now without stopping or without being interrupted, our players have seen branding from, for example, the Scooby-Doo movie. So there's a whole different way of advertising reaching consumers without... interrupting and with experiences that feel natural. Ultimately, my hope is the size of the opportunity is related to the total hours of immersion we provide. And in April, that was over 3.2 billion hours. So that is one way to think about what this might be.

Okay. And then just to follow up on DevEx, um, You talked about the 75% increase in engagement-based payouts, and presumably that's to help the real UGC creators that are the core of Roblox. But there's also been a professionalization of studios being built on your platform. We've seen backed by a lot of venture money that's come in over the past year. And does that put any pressure on you to also change the robux exchange rates especially as there's actually pressure on those studios to show dollar returns and pay employees in dollars and not robux and then also on devx to what extent do you see competition playing um in um in in your payouts to creators on the platform

Yeah, great question. Over the last four to five years, every year as we've tracked what developer number one, developer 10, developer 100, developer 1,000 makes, we've seen all of these categories continue to grow. And the total amount of money now going to each of those categories has continued to grow and I believe will keep growing. So the developers coming to our platform are looking Can I support or can we support a studio? And our largest studios now aren't an individual hobbyist. They are teams of 10, 20, 30, 40 professional devs. And that's part of why we're seeing all of this money flow into the platform. All of the... developers and creators on Roblox are UGC creators, whether it's developer number one or developer number thousand in the pipeline. And so there's a complementary system where even way down at developer number 10,000, As Mike mentioned earlier, there's an organic effect where when that check shows up, surprisingly, because that experience that is really experimental, we believe there's an interaction with that developer where it's motivational to create content on our platform, and it contributes to the funnel of these developers that are rising the ranks to 1,000, 251, and ultimately number one. And so even our top developers participate in engagement-based payouts. The other thing is to note, we never would announce a future increase in our DevX. That said, historically we have done it several times over the years as our P&L and balance sheet makes it prudent. So our top line philosophy is to move as much money into the hands of these developers as possible.

Hey Brandon, remember also you have to look at the value proposition for developers on our platform. It's a little bit different. than in other places you know it's used our tools our servers uh content moderation safety customer support billing collection and obviously a large audience that's really what you know you get when you come onto the roblox platform to your uh to your comment and uh and correct insight that we do pay uh developers in dollars in 2018 the developer community made 72 million dollars In 2021, as we said, we have a goal, we hope, that we can get to half a billion dollars. So the growth from 72 to potentially 500 million is a lot of incremental dollars. And so we're trying to build the biggest pool of capital that can support the biggest audience of engaged and excited developers as we possibly can. And in terms of just the multiples of the dollars available and the growth rate of those, I think that Roblox is tough to beat.

Great. Thanks very much.

Thanks, man. Our next question comes from the line of Matthew Thornton with Truist Securities. Go ahead, please. Your line is open.

Yeah, thanks, guys. A couple quick ones for me. I think earlier you talked about the mixed shift towards virtual items for identity and the avatar. Correct me if I'm wrong, but I think the payout economics there are a little bit lower, so that seems like that would be accretive to margin all those cuts. I just want to make sure that we have that right. And then just secondly, I'm just wondering if there's any movement, anything you could say about getting Roblox onto PlayStation and Switch and some of these other platforms, just any movement on those fronts. Thanks again, guys.

Yeah, I'll take the margin question and then I'll turn it over to Dave. You are correct in that the ratios are different. On the other hand, given the size and scale of the business and the investments that we're making, I would just caution everyone against, you know, looking at, you know, margin leverage immediately happening or in the next few quarters. We obviously, again, the unit economics of the business are quite positive and we're happy with the cash flow that the business is generating. On the other hand, we see our role right now as investors in this business, not as optimizers in the margin. And I don't mean that in a pejorative sense. I just mean we have such a big opportunity. We are so far from the user base and the scale that we want this business to be at. We have so many uh things that we want to invest in in product and technology that will enable more and more developers to build incredible content and bring that to a broader set of users that we still are much more focused on on those investments again hiring more people um it's great to be at you know over a thousand employees um and it's amazing how we've grown that employee base over the last few years but the the ambitions of this business when you talk about billions of users will take us, you know, be thousands and thousands of employees. So we have a long way to go in terms of investment and growing the headcount in the business. And as we've been talking about the economics for the developer community, if we keep our eyes focused on that, I think generally that will just pay incredible dividends because we'll ultimately drive, you know, greater growth in the top line of the business.

And then reasoning on devices, There's a wonderful historical context to this that goes all the way back to the original iPhone, where prior to that, two-dimensional HTML content was not consumable on mobile devices, and all of a sudden with the pinch and zoom, what you consumed on your desktop was the same as what you consumed on your phone. It was pivotal. We have the same vision for the immersive 3D multiplayer cloud stuff of the metaverse, in that we believe this should be accessible on all devices, both from viewing as well as interaction. And we've really innovated around this on phone, tablet, computer, and Xbox console, showing that developers can create content that, when pushed to our cloud, runs on all of these devices as well as auto-translates into multiple languages. So absolutely, long-term, Switch, PlayStation, Quest, all of these platforms make perfect sense for Roblox. What you're seeing right now is an incredible focus on the phone by us, which we believe is an incredibly difficult form factor and the most difficult form factor for that immersion. But these are all logical platforms, and at the same time, we won't share any shift dates for them.

Our next question comes from the line of David Gibson with Astros Advisory. Go ahead, please. Your line is open.

Thank you. Just further on your April DAU trend comments, you said the growth was, what, some 37%. Can you give us a sense of how that is different amongst the major regions like US, Canada, Europe, APAC, rest of the world? And then secondly, thinking as you emerge from COVID, Have you seen different trends out of countries that don't have much COVID, like Taiwan, Australia and others, that is different or gives you an insight into how you think US and Europe will play out in the future? Thank you.

Thanks for the question. If you go to the supplemental materials on the website, we break down users by region and by age. And so those regional numbers in Q1 and those trends that you've seen over the last few quarters pretty much translate into the April numbers. I don't know if it's absolutely exact, but my strong expectation is when you look at it, it'll be pretty similar, meaning the highest growth regions will be Asia Pacific and Europe and slightly trailing in terms of growth and year over year growth in April will be the US and Canada. Around the world, it's hard to get a great signal to find a country that is representative of the rest of the world where you saw a big COVID spike. in 2020, and then you vaccinated or you have herd immunity or whatever it is, and then all of a sudden now you don't have COVID. So it's really difficult to get an absolutely clean signal what we do see around the world is um continued high rates of conversion that's probably the one thing that seems characteristic of countries even if coded isn't as uh big an issue as it was uh prior but um i wouldn't say we have you know a perfect signal uh right now the us is um you know 60 plus percent of the bookings And so we're just still elevated in the United States. And so we don't get that much signal from other parts of the world. Haven't actually looked at Taiwan specifically, so maybe we'll go off and do that homework and see what that tells us.

Okay. And then just generally, how should we think about the seasonality of May and June versus April? I know it's like a pre-COVID world. We see them normally grow anyway, or do they slow down? How should we think about those models?

Yeah, normal seasonality, David, is that April has Easter, and so it's a little bit bigger than May. And then in June, your seasonality is better than May because basically school is out. And so the normal seasonality is we see a big jump in June versus May, and again, a decline in May versus April. We didn't have that seasonality last year, right? We were just growing straight through it. So it'll be very interesting to us to see if we see some of that seasonality. I wouldn't be surprised if we do. Last year, there was no way for seasonality to come through. This year, I would suspect that that's what you'll see, slight sequential decline in May and then June probably picking up. That's the normal seasonality.

Okay, that's great. Thanks very much. Yeah, no problem.

And now I'd like to turn it over to Anna Yen for some webcast questions.

Hi. All right. First one is from Ryan from Laney Capital. How do you think about roadblocks and potential in education? Have you considered creating educational programs for high school? We see this as an enormous opportunity.

Hey, great question, Ryan. Even when we started the company, Roblox, we had the vision that the best way to help learning was to build a very high-quality consumer platform that was free for everyone with the notion that there'd be enormous educational opportunity. The educational opportunity on our platform is really a stack, and it starts with maybe the more traditional expected learning learning to create, learning to code, learning to be a designer, learning to be an artist, learning to be a producer. We already see this manifest both within schools And more and more we have a vision that learning computer science will be happening on top of immersive platforms like Roblox. It's just so fun and it's so organic. And we have over 8 million creators right now on the platform who are really learning all of this stuff. because it's fun to create stuff and share it with friends. But going beyond this, we go to the next level, whereas we start to think about what went on in COVID, the ability at times to be together on the platform. you start to see educational opportunities that start to parallel books and video. And we use the classic example when we're studying ancient Rome in the future, we'll read about it, we'll watch video about it, but classrooms will go to ancient Rome together and immerse in it, and we think these will all be viable ways about learning and empathizing and understanding Way out in the future, we're very optimistic about people who don't have access to certain schooling or education, either geographically or for other reasons, really using the metaverse to participate spatially in learning activities. And so there's just such a bright future around supporting education on all of these levels. We are starting to support external vendors as well as our own internal curriculum, and we think there's a bright future there.

Okay, thanks, Dave. The next one is from Justin. Can you discuss any plans you have regarding video content integration into live experiences? And do you see video as a potential extension to attract new users and to further monetize the platform?

Yeah, great question. And for those of us that participated in the One World Together experience on Roblox, you got a little sense of how we view video. We are creating and supporting immersive 3D experience. With our friends, we can go places together. We can go to a concert. We can play together. We can work together. We can go to school together. And just as in the real world when we go to concerts and there are video streams and there are performers live, we think that's going to be very common in the metaverse as well. So the primary thrust right now of all of our work around video is mimicking the real world and making that video available within those experiences. One can imagine a lot of other interesting video experiences on our platform as well. Cliffs, streaming, things that typically happen right now on partners like YouTube or Twitch. And so there is a huge video ecosystem around Roblox with our influencers. It's just not on our platform right now. We don't have any future forward-looking statements around product in that area.

I think we've got time for one or two more. Roblox has shown impressive growth in our international market, and what is driving this? Is it technology? Is it content? Is it the flywheel? Can you comment on that?

Great question. Yes, yes, yes, yes. In fact, what has driven our growth historically has been a dual loop, and it's unique to this class of platforms. It's a loop around great content. The higher the quality of the content, the bigger the economy, the bigger the economy, the larger teams are able to make content mixed with up-and-coming UGC creators. And the better the content, the more people come to the platform. But that content then serves as a foundation for a second viral loop where the more of my friends are on the platform, the more exciting it's for me to come to the platform and hang out, play, work, learn, experience entertainment within that content. So it's yes to all of those. All of these work together in two viral loops to drive our growth.

Great. I think we can wrap it up.

Cool. Well, hey, team, thank you all. Really appreciate it. And thank you for all of the great questions. I just want to thank everyone out there, including members of the Roblox community, for joining us today. And it's really exciting building this metaverse. We're really excited about what's ahead for us. And finally, reach out to the world. Our hearts really reach out for all of the countries that are working through COVID, and we hope we're done with this as soon as possible. So thank you for joining us on our first earnings call today.

This concludes today's conference call.

You may now disconnect.