Roblox Corporation

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. 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 Jamie Morris, Roblox's Head of Investor Relations. Jamie?

Thank you. Good afternoon, everyone. I'm 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 Bazzucchi, 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. 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.

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%. 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 on year. We saw the emergence of viral hits that broke concurrency records. At a platform peak in August of 2025, we hit 45 million concurrence on Roblox. And we saw new records for individual games on Roblox, including in September of 2025, Steel of 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 drives 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. 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 U.S. market. Now diving into Q4, where we delivered another quarter of outperformance, Q4 revenue was $1.4 billion, up 43% year-on-year. And our Q4 bookings were at $2.2 billion, which is up 63% year-on-year. We saw strong growth across all regions. U.S. and Canada grew 41% year-on-year. APAC grew 96% year-on-year, with a couple key strength points, Japan at 160% year-on-year, India won 10% year-on-year, and Indonesia at over 700% year-on-year. On DAUs in Q4, we saw growth at 69% year-on-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-on-year. Quarterly monthly unique payers were nearly 37 million, which is close to a double from a year ago and up sequentially. And this was strong across the globe, U.S. and Canada up 34% year-on-year. And in Q4, DevEx was at $477 million, which was up 70% year on year. This increase in DevEx reflects our 8.5% 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% 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 a billion people every day with optimism and civility. And we remain bullish about this vision. In the shareholder letter, we outline 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. 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 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. 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 is 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 will 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 2GB 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. Our stack from top to bottom is multiplayer, and we run that extremely efficiently in our own data centers. And, of course, we autoscale, 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 have now 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. 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. 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 2D and 3D 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 and by walking around and painting potential worlds, as well as something we look forward to potentially integrating with Roblox in 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. 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, Cube3D, 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 Roos 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. 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 a genetic 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 in our recommended for you algorithm. In 2025, on average, users engaged with over 24 unique experiences per month. This is up double digits from 2024. And I want to know if 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 of age of everyone on our platform and the use in how we support chat. 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 of 26, and as of January 31st, 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. We're moving to continuous age estimation, which will use additional signals such as play patterns, the social graph, economic activities 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 thought 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. 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 multi-year period. With that, I'll turn it over to Naveen.