Roblox's earnings report for Q4 2024 and the full fiscal year of 2024 reflected impressive momentum across several key financial and operational indicators, highlighting the company’s steady growth and ongoing strategic focus.

In the fourth quarter of 2024, revenue reached $988.2 million, marking a robust 32% increase year-over-year. Complementing this, bookings totaled $1,361.6 million, up 21% from the same quarter the previous year. Despite these gains, the company posted a net loss attributable to common stockholders of $219.6 million, illustrating the continued investment phase it is undergoing. On a more positive note, adjusted EBITDA stood at $65.6 million (excluding deferred revenue adjustments), reflecting operational efficiency. Perhaps most notably, free cash flow surged to $120.6 million, representing a 54% year-over-year increase.

Engagement on the platform remained strong, with Average Daily Active Users (DAUs) hitting 85.3 million, up 19% year-over-year, and total hours engaged reaching 18.7 billion, a 21% increase. Monetization remained stable with average bookings per DAU at $15.97, showing a modest 1% rise.

For the full year of 2024, Roblox reported revenue of $3,602.0 million, a 29% increase over FY 2023, while bookings came in at $4,369.1 million, rising 24% year-over-year. The net loss for the year totaled $935.4 million, but the company continued to improve on other fronts. Adjusted EBITDA reached $180.2 million, and free cash flow experienced extraordinary growth, hitting $641.3 million, a staggering 417% increase compared to the prior year. The platform also saw an expansion in its user base, with average DAUs for the year at 82.9 million, up 21%, and total hours engaged reaching 73.5 billion, an increase of 23% year-over-year.

Several factors drove this growth. Geographically, the platform saw explosive adoption in key emerging markets, with DAUs in Japan and India growing over 50% year-over-year. From a demographic standpoint, users aged 13 and above now make up over 61% of total DAUs, with this age group growing by 26%. Roblox’s investment in its developer ecosystem also paid off, as the company shared $922.8 million with developers in FY 2024, an increase of 25% year-over-year.

Technological and platform enhancements further fueled user engagement and monetization. Improvements in app performance, AI-powered discovery, and live operations capabilities helped create a more seamless and dynamic experience for users and developers alike.

Looking ahead to FY 2025, Roblox has issued optimistic guidance. The company expects revenue to range between $4,245 million and $4,345 million, and bookings to reach between $5,200 million and $5,300 million. While it still anticipates a net loss of between $995 million and $1,070 million, free cash flow is projected to rise further to $800 million to $860 million.

Strategically, Roblox remains focused on scaling its share of the global gaming market. It currently holds 2.4% of the $1.802 trillion industry, but is ambitiously targeting a 10% share, driven by ongoing investments in AI, infrastructure, and enhanced developer tools. This focus underlines the company’s long-term vision of becoming a dominant force in the evolving digital entertainment ecosystem.