Roblox Corporation

Good morning. My name is Audra, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Roblox Q4 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. And again, you may now begin your conference. Good morning, everyone, and thank you for joining our Q&A session to discuss Roblox's Q4 and fiscal 2021 results. With me today is Roblox's CEO, David Bazzucchi, and CFO, Mike Guthrie. Before we start, I want to remind everyone that yesterday after market close, we published a shareholder letter and earnings results on our Investor Relations website at ir.roblox.com. On this call, we will make some brief opening remarks and reserve the rest of the time for your questions. For webcast participants, please note the question icon at the bottom of your screen where you can type in your questions. We'll do our best to take as many as possible. On today's call, we may be making forward-looking statements, including but not limited to our expectations of our business, future financial results, and strategy. forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in our forward-looking statements and such risks are described in our risk factors including included in our sec filings including our form 10-2 files for the first quarter ended for the fiscal quarter ended september 30th 2021 you should not rely on our forward-looking statements as predictions of future events We disclaim any obligation to update any forward-looking statements except as required by law. During this call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics for reported results can be found in our press release issued yesterday, as well as in our supplemental slides, copies of which can be found on our IR website. The filing of this call is being webcast. and it will be archived on our website shortly after. With that, I'll turn the call over to David.

Thank you, Anna. This is David Buzicki, and I'm joined by Mike Guthrie this morning. We'd like to welcome our Roblox community and our investors, both large and small. Great to be with you all today. And we're wishing you and your families all the best as hopefully we're emerging from COVID. Last year at this time, we were heavily buttoned down. Today, we have many of our Roblox fans live in the office. We appreciate your partnership as you're joining us in our mission of bringing 1 billion people together with civility and optimism around the world. a couple quick highlights before we dive in with some additional facts that were not shared in our shareholder letter in addition to our january user growth our 17 through 24 year old segment in january grew 51 year on year which is a wonderful validation of our vision to bring people of all ages together on our platform And internationally, in addition to strong growth in Asia Pacific, Latin America, and Europe, two countries that we have a lot of focus on, Japan and India, both grew over 100% year on year, which is wonderful for us. As we start to look at expanding the uses of Roblox, our community fund is live and we have, as we've announced, some exciting partnerships, including with FIRST Robotics. And we continue to do branded events and concerts almost as fast as we can go as we move towards our vision of making these types of experiences completely self-serve. And I would highlight our recent partnership both with the NFL and Zara Larsson. Over 40% of the top 100 experiences on Roblox right now are using voice. And we are working thoughtfully and carefully as we expand this rollout to our 13 and up validated users. And as always, we'll do this with safety and civility. And we have a lot of wonderful stuff in the pipeline that we can talk about today on the product side. um with that just like to highlight our core value is always safety and stability and that's where we put our primary focus and with that i'll hand it over to mike guthrie to see if he has any opening remarks thanks dave i just want to one addendum to things something that dave said in addition to the high rate of growth in 17 to 24 year olds

that aid demographic did comprise 20.5% of all VAUs in January. So it's not as though it's a small segment for us. It's a large segment and it's growing quickly. As Dave also mentioned, we're basically seven quarters into COVID. The first four quarters, our business grew dramatically, and we had quarters in which our top line was tripling year over year, and even this time last year, it was 2.6x what it had been the year before. So we're obviously lapping some fairly significant growth. What we do know for sure is is that we're jumping off into 22 and into a period where the hope of the world is reopening in a place where we just have never been bigger or better positioned. We are at peak users on the platform. We are at peak engagement, having been over 4.2 billion hours. and over $4 billion for the first time. We have never had as many payers on the platform. And most importantly, we've never shared more in the economics with the developer community and had a stronger set of incentives for developers to build amazing content. We've never worked with more artists on the music side or brands on Roblox. And last and certainly not least, we have never had more incredibly talented product and engineering professionals in our company excited to build amazing things over the next few years. So we couldn't be more excited about jumping into 2022 and beyond, and we really look forward to taking questions this morning. And with that, I think we'll open it up.