Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 01, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-04321 | ||
Entity Registrant Name | Roblox Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-0991664 | ||
Entity Address, Address Line One | 970 Park Place | ||
Entity Address, City or Town | San Mateo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94403 | ||
City Area Code | 888 | ||
Local Phone Number | 858-2569 | ||
Title of 12(b) Security | Class A common stock, par value of $0.0001 per share | ||
Trading Symbol | RBLX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16.3 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrants’ definitive proxy statement relating to its 2024 annual meeting of shareholders (the “2024 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2024 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001315098 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 581,551,952 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 50,086,273 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | San Jose, California |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 678,466 | $ 2,977,474 |
Short-term investments | 1,514,808 | 0 |
Accounts receivable—net of allowances | 505,769 | 379,353 |
Prepaid expenses and other current assets | 74,549 | 61,641 |
Deferred cost of revenue, current portion | 501,821 | 420,136 |
Total current assets | 3,275,413 | 3,838,604 |
Long-term investments | 1,043,399 | 0 |
Property and equipment—net | 695,360 | 592,346 |
Operating lease right-of-use assets | 665,107 | 526,030 |
Deferred cost of revenue, long-term | 283,326 | 225,132 |
Intangible assets, net | 53,060 | 54,717 |
Goodwill | 142,129 | 134,335 |
Other assets | 10,284 | 4,323 |
Total assets | 6,168,078 | 5,375,487 |
Current liabilities: | ||
Accounts payable | 60,087 | 71,182 |
Accrued expenses and other current liabilities | 271,121 | 236,006 |
Developer exchange liability | 314,866 | 231,704 |
Deferred revenue—current portion | 2,406,292 | 1,941,943 |
Total current liabilities | 3,052,366 | 2,480,835 |
Deferred revenue—net of current portion | 1,373,250 | 1,095,291 |
Operating lease liabilities | 646,506 | 494,590 |
Long-term debt, net | 1,005,000 | 988,984 |
Other long-term liabilities | 22,330 | 10,752 |
Total liabilities | 6,099,452 | 5,070,452 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Common stock issued, value | 61 | 59 |
Additional paid-in capital | 3,134,946 | 2,213,603 |
Accumulated other comprehensive income/(loss) | 1,536 | 671 |
Accumulated deficit | (3,060,253) | (1,908,307) |
Total Roblox Corporation Stockholders’ equity | 76,290 | 306,026 |
Noncontrolling interests | (7,664) | (991) |
Total Stockholders’ equity | 68,626 | 305,035 |
Total Liabilities and Stockholders’ equity | $ 6,168,078 | $ 5,375,487 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 631,221 | 604,674 |
Common stock, shares outstanding (in shares) | 631,221 | 604,674 |
Common Class A | ||
Common stock, shares authorized (in shares) | 4,935,000 | 4,935,000 |
Common stock, shares issued (in shares) | 581,135 | 553,337 |
Common stock, shares outstanding (in shares) | 581,135 | 553,337 |
Common Class B | ||
Common stock, shares authorized (in shares) | 65,000 | 65,000 |
Common stock, shares issued (in shares) | 50,086 | 51,337 |
Common stock, shares outstanding (in shares) | 50,086 | 51,337 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Revenue | $ 2,799,274 | $ 2,225,052 | $ 1,919,181 | |
Cost and expenses: | ||||
Cost of revenue | [1] | 649,115 | 547,658 | 496,870 |
Developer exchange fees | 740,752 | 623,855 | 538,321 | |
Infrastructure and trust & safety | 878,361 | 689,081 | 456,498 | |
Research and development | 1,253,598 | 873,477 | 533,207 | |
General and administrative | 390,055 | 297,317 | 303,020 | |
Sales and marketing | 146,460 | 117,448 | 86,363 | |
Total cost and expenses | 4,058,341 | 3,148,836 | 2,414,279 | |
Loss from operations | (1,259,067) | (923,784) | (495,098) | |
Interest income | 141,818 | 38,842 | 92 | |
Interest expense | (40,707) | (39,903) | (6,998) | |
Other income/(expense), net | (527) | (5,744) | (1,796) | |
Loss before income taxes | (1,158,483) | (930,589) | (503,800) | |
Provision for/(benefit from) income taxes | 454 | 3,552 | (320) | |
Consolidated net loss | (1,158,937) | (934,141) | (503,480) | |
Net loss attributable to noncontrolling interests | (6,991) | (9,775) | (11,829) | |
Net loss attributable to common stockholders | $ (1,151,946) | $ (924,366) | $ (491,651) | |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (1.87) | $ (1.55) | $ (0.97) | |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (1.87) | $ (1.55) | $ (0.97) | |
Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 616,445 | 595,559 | 505,858 | |
Weighted-average shares used in computing net loss per share attributable to common stockholders—diluted (in shares) | 616,445 | 595,559 | 505,858 | |
[1] Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net loss | $ (1,158,937) | $ (934,141) | $ (503,480) |
Other comprehensive income/(loss), net of tax: | |||
Foreign currency translation adjustments | 1,089 | 1,287 | (55) |
Net change in unrealized gains/(losses) on available-for-sale marketable securities | 94 | 0 | 0 |
Other comprehensive income/(loss), net of tax | 1,183 | 1,287 | (55) |
Total comprehensive loss, including noncontrolling interests | (1,157,754) | (932,854) | (503,535) |
Less: net loss attributable to noncontrolling interests | (6,991) | (9,775) | (11,829) |
Less: cumulative translation adjustments attributable to noncontrolling interests | 318 | 678 | (27) |
Other comprehensive loss attributable to noncontrolling interests, net of tax | (6,673) | (9,097) | (11,856) |
Total comprehensive loss attributable to common stockholders | $ (1,151,081) | $ (923,757) | $ (491,679) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity/(Deficit) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Convertible Preferred Stock Series H Preferred Stock | Class A and Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income/(Loss) | Accumulated Deficit | Non- Controlling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 337,235,000 | 337,235,000 | ||||||
Beginning balance at Dec. 31, 2020 | $ 344,827 | |||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Issuance of preferred stock (in shares) | 11,889,000 | |||||||
Issuance of preferred stock | $ 534,286 | |||||||
Conversion of convertible preferred stock to common stock in connection with the direct listing (in shares) | (349,124,000) | |||||||
Conversion of convertible preferred stock to common stock in connection with the direct listing | $ (879,113) | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | |||||||
Ending balance at Dec. 31, 2021 | $ 0 | |||||||
Balance beginning (Shares) at Dec. 31, 2020 | 201,327,000 | |||||||
Balance beginning at Dec. 31, 2020 | $ (232,381) | $ 20 | $ 239,792 | $ 90 | $ (492,290) | $ 20,007 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | 33,373,000 | 33,372,000 | ||||||
Issuance of common stock upon exercise of stock options | $ 65,242 | $ 3 | 65,284 | (45) | ||||
Issuance of unregistered restricted stock awards granted in conjunction with a business combination (in shares) | 487,000 | |||||||
Issuance of unregistered restricted stock awards granted in conjunction with a business combination | 31,274 | 31,274 | ||||||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 191,000 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 11,268 | 11,268 | ||||||
Conversion of convertible preferred stock to common stock in connection with the direct listing (in shares) | 349,124,000 | |||||||
Conversion of convertible preferred stock to common stock in connection with the direct listing | 879,113 | $ 35 | 879,078 | |||||
Vesting of restricted stock units (in shares) | 1,376,000 | |||||||
Stock-based compensation expense | 341,942 | 341,942 | ||||||
Other (in shares) | 1,000 | |||||||
Other comprehensive income/(loss) | (55) | (28) | (27) | |||||
Net loss | (503,480) | (491,651) | (11,829) | |||||
Balance ending (Shares) at Dec. 31, 2021 | 585,878,000 | |||||||
Balance ending at Dec. 31, 2021 | $ 592,923 | $ 58 | 1,568,638 | 62 | (983,941) | 8,106 | ||
Ending balance (in shares) at Dec. 31, 2022 | 0 | |||||||
Ending balance at Dec. 31, 2022 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | 9,615,000 | 9,615,000 | ||||||
Issuance of common stock upon exercise of stock options | $ 22,778 | $ 1 | 22,777 | |||||
Issuance of unregistered restricted stock awards granted in conjunction with a business combination (in shares) | 385,000 | |||||||
Issuance of unregistered restricted stock awards granted in conjunction with a business combination | 10,138 | 10,138 | ||||||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 575,000 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 22,702 | 22,702 | ||||||
Vesting of restricted stock units (in shares) | 8,169,000 | |||||||
Withholding taxes related to net share settlement of restricted stock units (in shares) | (3,000) | |||||||
Withholding taxes related to net share settlement of restricted stock units | (150) | (150) | ||||||
Stock-based compensation expense | 589,498 | 589,498 | ||||||
Other (in shares) | 55,000 | |||||||
Other comprehensive income/(loss) | 1,287 | 609 | 678 | |||||
Net loss | $ (934,141) | (924,366) | (9,775) | |||||
Balance ending (Shares) at Dec. 31, 2022 | 604,674,000 | 604,674,000 | ||||||
Balance ending at Dec. 31, 2022 | $ 305,035 | $ 59 | 2,213,603 | 671 | (1,908,307) | (991) | ||
Ending balance (in shares) at Dec. 31, 2023 | 0 | |||||||
Ending balance at Dec. 31, 2023 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | 10,670,000 | 10,670,000 | ||||||
Issuance of common stock upon exercise of stock options | $ 23,749 | $ 2 | 23,747 | |||||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 1,065,000 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 29,629 | 29,629 | ||||||
Vesting of restricted stock units (in shares) | 14,812,000 | |||||||
Stock-based compensation expense | 867,967 | 867,967 | ||||||
Other comprehensive income/(loss) | 1,183 | 865 | 318 | |||||
Net loss | $ (1,158,937) | (1,151,946) | (6,991) | |||||
Balance ending (Shares) at Dec. 31, 2023 | 631,221,000 | 631,221,000 | ||||||
Balance ending at Dec. 31, 2023 | $ 68,626 | $ 61 | $ 3,134,946 | $ 1,536 | $ (3,060,253) | $ (7,664) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Consolidated net loss | $ (1,158,937) | $ (934,141) | $ (503,480) |
Adjustments to reconcile net loss including noncontrolling interests to net cash and cash equivalents provided by operations: | |||
Depreciation and amortization | 208,142 | 130,083 | 75,622 |
Stock-based compensation expense | 867,967 | 589,498 | 341,942 |
Operating lease non-cash expense | 97,063 | 69,100 | 43,794 |
(Accretion)/amortization on marketable securities, net | (73,162) | 0 | 0 |
Amortization of debt issuance costs | 1,316 | 1,261 | 216 |
Impairment expense, (gain)/loss on investment and other asset sales, and other, net | 8,969 | 361 | 680 |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | (126,172) | (72,479) | (61,044) |
Accounts payable | (3,475) | 10,302 | 23,369 |
Prepaid expenses and other current assets | (12,770) | (33,769) | (13,593) |
Other assets | (5,961) | (1,221) | (1,367) |
Developer exchange liability | 83,162 | 67,798 | 82,994 |
Accrued expenses and other current liabilities | 8,680 | 19,560 | 58,809 |
Other long-term liability | 11,397 | 10,159 | (1,189) |
Operating lease liabilities | (50,454) | (47,875) | (34,743) |
Deferred revenue | 742,294 | 662,378 | 819,927 |
Deferred cost of revenue | (139,879) | (101,719) | (172,828) |
Net cash and cash equivalents provided by operating activities | 458,180 | 369,296 | 659,109 |
Cash flows from investing activities: | |||
Acquisition of property and equipment | (320,667) | (426,163) | (93,273) |
Payments related to business combination, net of cash acquired | (3,859) | (13,388) | (45,692) |
Purchases of intangible assets | (13,500) | (1,500) | (7,856) |
Purchases of investments | (4,591,974) | 0 | 0 |
Maturities of investments | 1,642,719 | 0 | 0 |
Sales of investments | 462,182 | 0 | 0 |
Net cash and cash equivalents used in investing activities | (2,825,099) | (441,051) | (146,821) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 53,226 | 45,752 | 76,177 |
Net proceeds from issuance of preferred stock | 0 | 0 | 534,286 |
Payment of withholding taxes related to net share settlement of restricted stock units | 0 | (150) | 0 |
Proceeds from debt issuances | 14,700 | 0 | 990,000 |
Payment of debt issuance costs | 0 | (154) | (2,339) |
Payments related to business combination, after acquisition date | (750) | (150) | 0 |
Other financing activities | 0 | (1,656) | 0 |
Net cash and cash equivalents provided by financing activities | 67,176 | 43,642 | 1,598,124 |
Effect of exchange rate changes on cash and cash equivalents | 735 | 1,287 | (55) |
Net increase/(decrease) in cash and cash equivalents | (2,299,008) | (26,826) | 2,110,357 |
Cash and cash equivalents | |||
Beginning balance | 2,977,474 | 3,004,300 | 893,943 |
Ending balance | 678,466 | 2,977,474 | 3,004,300 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 38,750 | 38,965 | 0 |
Cash paid for income taxes, net | 3,145 | 953 | 0 |
Supplemental disclosure of noncash investing and financing activities: | |||
Property and equipment additions in accounts payable and accrued expenses and other current liabilities | 31,340 | 57,199 | 50,388 |
Intangible asset purchases in accounts payable | 1,200 | 0 | 0 |
Fair value of unregistered restricted stock awards issued as consideration for a business combination | 0 | 10,138 | 31,274 |
Conversion of convertible preferred stock to common stock upon direct listing | 0 | 0 | 879,113 |
Unpaid debt issuance costs | $ 0 | $ 0 | $ 154 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Overview and Summary of Significant Accounting Policies | 1. Overview and Summary of Significant Accounting Policies Organization and Description of Business —Roblox Corporation (the “Company” or “Roblox”) was incorporated under the laws of the state of Delaware in March 2004. The Company operates a free to use immersive platform for connection and communication (the “Roblox Platform” or “Platform”) where people come to create, play, work, learn, and connect with each other in experiences built by our global community of creators. Users are free to immerse themselves in experiences on the Roblox Platform and can acquire experience-specific enhancements or avatar items by using purchased Robux, our virtual currency. Any user can be a developer or creator on the Platform using Roblox Studio, a set of free software tools. Developers and creators build the experiences that are published on Roblox and can earn Robux by monetizing their experience, creating and selling or reselling avatar items, or creating and selling Roblox Studio plugins. Direct Listing —On March 10, 2021, the Company completed a direct listing of its Class A common stock (“Direct Listing”) on the New York Stock Exchange (“NYSE”). The Company incurred fees primarily related to financial advisory service, audit and legal expenses, in connection with the Direct Listing and recorded general and administrative expenses of $50.7 million during the first quarter of the fiscal year ended March 31, 2021. Immediately prior to the Direct Listing, all shares of outstanding convertible preferred stock were converted into an equivalent number of shares of Class A common stock. Basis of Presentation and Summary of Significant Accounting Policies Fiscal Year —The Company’s fiscal year ends on December 31. For example, references to fiscal 2023, 2022, and 2021 refer to the fiscal year ending December 31, 2023, December 31, 2022, and December 31, 2021, respectively. Basis of Presentation —The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation —The consolidated financial statements include the accounts of the Company and subsidiaries over which the Company has control. All intercompany transactions and balances have been eliminated. The consolidated financial statements include 100% of the accounts of wholly owned and majority owned subsidiaries, and the ownership interest of minority investors is recorded as noncontrolling interest. Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, the estimated period of time the virtual items are available to the user, which is estimated as the average lifetime of a paying user, and the estimated amount of consumable and durable virtual items purchased for which the Company lacks specific information that is used for revenue recognition, the estimated amount of expected breakage related to prepaid card sales, useful lives of property and equipment and intangible assets, fair value of assets and liabilities acquired through acquisitions, accrued liabilities (including accrued developer exchange fees), contingent liabilities, valuation of deferred tax assets and liabilities, stock-based compensation expense, the discount rate used in measuring our operati ng lease liabilities, the carrying value of operating lease right-of-use assets, evaluation of recoverability of goodwill, intangible assets and long-lived assets, and as necessary, estimates of fair value to measure impairment losses. Management believes that the estimates, and judgments upon which they rely, are reasonable based upon information available to them at the time that these estimates and judgments are made. Actual results could differ from those estimates and any such differences may be material to the consolidated financial statements. To the extent that there are material differences between these estimates and actual results, the Company’s consolidated financial statements will be affected. Foreign Currency Transactions — The functional currency of the Company’s international subsidiaries is the U.S. dollar, with the exception of a Chinese subsidiary wholly owned by Roblox China Holding Corp., as discussed in Note 15, “Joint Venture” to the notes to these consolidated financial statements. We translate the financial statements of our non-U.S. dollar functional subsidiary to U.S. dollars using the period-end exchange rate for assets and liabilities and the average exchange rate for the period for revenues and expenses. The effects of foreign currency translation are included in stockholders’ equity/(deficit) and periodic movements are summarized as a line item in the consolidated statements of comprehensive income. We reflect foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency, which includes gains and losses from the remeasurement of assets and liabilities, as a component of other income/(expense), net. Segments — The Company operates as a single operating and reportable segment, which is at the consolidated entity level. The chief operating decision maker of the Company is its chief executive officer (“CEO”), who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. Revenue Recognition Revenue Recognition Policy In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when control of the service is transferred to the customer. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for these services. To achieve the core principle of this standard, the Company determines revenue recognition by: • identifying the contract, or contracts, with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, the Company satisfies performance obligations by transferring the promised services. The Company derives substantially all of its revenue from the sale of virtual items on the Roblox Platform. Roblox Platform The Company operates the Roblox Platform as live services that allow users to play and socialize with others for free. Within the experience, however, users can purchase virtual currency (“Robux”) to ultimately obtain virtual items to enhance their social experience. Proceeds from the sale of Robux are initially recorded in deferred revenue and recognized as revenue as a user purchases and uses virtual items. The Company’s identified performance obligation is to provide users with the ability to acquire, use, and hold virtual items on the Roblox Platform over the estimated period of time the virtual items are available to the user or until the virtual items are consumed. Users can purchase Robux as one-time purchases or through monthly subscriptions via payment processors or through prepaid cards. Payments from users are non-refundable and relate to non-cancellable contracts for a fixed price that specify Company’s obligations. Revenue is recorded net of taxes assessed by government authorities that are both imposed on and concurrent with specific revenue transactions between the Company and its users, and estimated chargebacks and refunds. The satisfaction of the Company’s performance obligation is dependent on the nature of the virtual item purchased and as a result, the Company categorizes its virtual items as either consumable or durable. • Consumable virtual items represent items that can be consumed by a specific user action. Common characteristics of consumable virtual items may include items that are no longer displayed on the user’s inventory after a short period of time or do not provide the user any continuing benefit following consumption. For the sale of consumable virtual items, the Company recognizes revenue as the items are consumed. • Durable virtual items represent items which result in a persistent change to a users’ character or item set (e.g., virtual hat, pet, or house). These items are generally available to the customer to hold, use, or display for as long as they are on the Roblox Platform. The Company recognizes revenue from the sale of durable virtual items ratably over the estimated period of time the items are available to the user which is estimated as the average lifetime of a paying user. To separately account for consumable and durable virtual items, the Company specifically identifies each purchase for the majority of virtual items purchased on the Roblox Platform. For the remaining population, the Company estimates the amount of consumable and durable virtual items purchased based on data from specifically identified purchases and the expected behavior of the users within similar experiences. The estimation of consumable and durable virtual items purchased for the population of purchases not specifically identified requires management’s judgment as the Company evaluates and estimates the expected behavior of users in the population using information from known purchases in similar experiences. The average lifetime of a paying user estimate is calculated based on historical monthly retention data for each user cohort to project future participation on the Roblox Platform. Determining the estimated average lifetime of a paying user requires management’s judgment as the Company analyzes the most recent trends in player cohort activity and other qualitative factors, including paying user behavior (e.g. impacts due to macroeconomic factors such as COVID-19), existing and new competition from a variety of entertainment resources for our users, the availability of the Roblox Platform across markets and user demographics, and other factors. The Company also considers results from prior analyses in determining the estimated average lifetime of a paying user. The Company believes this estimate is the best representation of the average life of the durable virtual items. The estimated paying user life was 28 months, 28 months, and 23 months as of December 31, 2023, 2022, and 2021, respectively. As part of the process above, in the first quarter of 2022, the Company updated its estimated paying user life from 23 months to 25 months, which was subsequently updated again to 28 months in the third quarter of 2022, where it stayed for the entire year ended December 31, 2023. Based on the carrying amount of deferred revenue and deferred cost of revenue as of December 31, 2021, these changes in estimates resulted in a decrease in revenue of $344.9 million and a decrease in cost of revenue of $79.3 million during the year ended December 31, 2022. The Company offers prepaid cards through online and physical retailers, as well as on the Company website. The Company estimates expected breakage by taking into consideration historical patterns of redemption and escheatment laws as applicable. Principal Agent Considerations The Company evaluates the sales of Robux via third-party payment processors to determine whether its revenues should be reported gross or net of fees either retained by the payment processor or paid to the developers and creators (“Developer Exchange Fees”). The Company is the principal in the transaction with the end user as a result of controlling, hosting, and integrating the delivery of the virtual items to the end user. The Company records revenue gross as a principal and records fees paid to payment processors as a component of cost of revenue and fees paid to developers and creators as a component of developer exchange fees expense. Other Revenue Other revenue primarily consists of revenue from advertising, licenses, and royalties. The Company recognizes revenue based on the performance obligations of the underlying agreements, in an amount that reflects the consideration that the Company expects to be entitled to. Cost of Revenue —Cost of revenue primarily consists of payment processing fees charged by various distribution channels, as well as costs associated with the printing of prepaid cards. Deferred Cost of Revenue —The Company defers contract costs that are direct and incremental to obtaining user contracts (i.e., sales of Robux). Deferred cost of revenue consists of payment processing fees charged by third-party payment processors. Payment processing fees are amortized over the estimated period of time the virtual items are available to the user on the Roblox Platform (based on the nature of the virtual item as either consumable or durable) in proportion to the revenue recognized. The Company classifies deferred cost of revenue as short-term or long-term based on when the Company expects to recognize the expense. Deferred cost of revenue is periodically reviewed for impairment. Concentration of Credit Risk and Significant Customers —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, long-term investments and accounts receivables. Cash is deposited with high quality financial institutions and may, at times, exceed federally insured limits. Management believes that the financial institutions that hold the Company’s cash deposits are financially creditworthy and, accordingly, minimal credit risk exists with respect to those balances. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal interest rate risk. As it relates to cash equivalents, short-term investments, and long-term investments, the Company’s investment policy limits the amount of credit exposure in its portfolio by imposing credit rating minimums and limiting purchases by security type and sector. The Company uses various distribution channels to collect and remit payments from users. As of December 31, 2023 and 2022, one distribution channel accounted for 30% and 37% of our accounts receivable, respectively, while a second distribution channel accounted for 26% and 19% of our accounts receivable, respectively. For the years ended December 31, 2023, 2022, and 2021, one distribution channel processed 30%, 32%, and 35% of our overall revenue transactions, respectively, and a second distribution channel processed 17%, 18%, and 19% of our overall revenue transactions, respectively. Fair Value Hierarchy —Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity, associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 —Inputs that are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Cash, Cash Equivalents and Restricted Cash —Cash and cash equivalents primarily consisted of cash in hand and money market instruments with maturities of 90 days or less from the date of purchase. We had no restricted cash balances as of December 31, 2023 and 2022. Short-Term and Long-Term Investments —Realized gains and losses for all investments are determined using the specific-identification method and are reflected as a component of other income/(expense), net in the consolidated statements of operations. Debt Securities Short-term and long-term investments include corporate debt securities, commercial paper, U.S. Treasury securities, U.S. agency securities, foreign government securities, and certificates of deposits. Based on our intentions, all debt investments are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded as a separate component of other comprehensive income, net of tax. The Company determines the appropriate classification of its investments as short-term or long-term at the time of purchase and reevaluates such determination at each reporting period based on their respective maturity dates and the Company’s reasonable expectation with regard to those investments (e.g. expectations of future sales or redemptions). For debt securities in an unrealized loss position, we first consider whether we intend to or it is more likely than not that we will be required to sell the individual security prior to recovery of its amortized cost basis and if so, we adjust the carrying value of security down to its fair value, with the amount of the write-down recorded as a realized loss within other income/(expense), net. Otherwise, we determine whether a decline in fair value is attributable to a partial or full credit loss by reviewing factors such as the extent to which the fair value is less than the amortized cost basis, changes in interest rates since the purchase of the security, the financial condition of the issuer, including changes in credit ratings, the remaining payment terms of the security, as well as any adverse conditions specifically related to the security, the issuer’s industry or its geographic area. If a credit loss exists, we adjust the carrying value by recording expense within other income/(expense), net equal to the amount of the credit loss, with such amount limited to the amount of the unrealized loss. Subsequent recoveries of fair value originally attributed to a credit loss are subsequently recognized as income within other income/(expense), net. Finally, any unrealized loss not deemed to be attributable to a credit loss is recognized as component of other comprehensive income/(loss), net of tax. For purposes of identifying and measuring credit losses, the Company excludes any related accrued interest from both the fair value and amortized cost basis of the investment. Accrued interest receivable, net of the allowance for credit losses (if any), is recorded as a component of prepaid expenses and other current assets in our consolidated financial statements. Equity Securities with Readily Determinable Fair Value Short-term investments include mutual fund investments related to the Company’s nonqualified deferred compensation plan, which are held in a rabbi trust. The Company classifies these investments as trading securities as the rabbi trust actively manages the asset allocation to match the participants’ hypothetical fund allocations. The Company considers investments held in the rabbi trust to be restricted given their withdrawal and general use is legally restricted. All equity inve stments are reported at fair value, with unrealized gains and losses recorded within other income/(expense), net in our consolidated statement of operations. Accounts Receivable and Related Allowances — Accounts receivable represent amounts due to us based on contractual obligations with our customers. Payments made by the Company’s users are collected by payment processors and remitted to the Company generally within 30 days of invoicing. The Company maintains allowances for potential credit losses when deemed necessary. The Company has not experienced any material credit losses to date. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, it records a specific allowance as a reduction to the accounts receivable balance to reduce it to its net realizable value. In addition, the Company holds a reserve for chargebacks and refunds based on historical data and current trends and projections. Specific allowances, chargeback, and refund reserves have not been material for any of the periods presented. Property and Equipment—Net — Property and equipment are recorded at historical cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight line basis over the estimated useful lives of the respective assets. Repair and maintenance costs are expensed as incurred. The estimated useful life for each asset category is as follows: Property and Equipment Estimated Useful Life Servers and related equipment 5 years Computer hardware and software 2 - 5 years Furniture and fixtures 2 years Leasehold improvements Shorter of remaining lease term or estimated useful life Goodwill and Intangible Assets —Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. Goodwill is not amortized but rather tested for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation by comparing the estimated fair value of our single reporting unit, determined using the Company’s market capitalization as of the testing date, to its carrying value. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during any of the periods presented. Intangible assets with finite lives are carried at cost, less accumulated amortization. Intangible assets with finite lives are generally amortized on a straight-line basis over the estimated useful life of the respective asset, generally up to 5 years, or in the case of acquired patents, up to 10 years. Business Combinations and Asset Acquisitions —To determine whether a transaction is accounted for as an asset acquisition or business combination, the Company applies a screen test to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen test does not result in substantially all of the fair value concentrated in a single identifiable asset or group of similar identifiable assets, the Company performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test indicates that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination. For business combinations, the purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their respective estimated fair values. The excess of the fair value of purchase consideration over their fair values is recorded as goodwill. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates . As a result, during the measurement period, which may be up to one year following the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded within the accompanying consolidated statements of operations. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired. Software Development Costs —The Company incurs costs related to developing the Roblox Platform and related support systems. The Company capitalizes development costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Development costs meeting the Company’s capitalization criteria were not material during the periods presented. Impairment of Long-Lived Assets— The Company periodically evaluates the carrying value of long-lived assets to be held and used when indicators of impairment exist. The carrying value of a long-lived asset to be held and used is considered impaired when the estimated separately identifiable undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying value of the asset. In that event, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company’s business strategy and internal forecasts. Developer Exchange Fees Expense —The Company has established an incentive program for developers and creators to build and operate virtual experiences within the Roblox environment. Developers and creators can earn Robux through the sale of access to their experiences and enhancements in their experiences, the sale of content and tools between developers through the Creator Store, and the sale of items to users through the Marketplace. Developers can also earn Robux through our engagement-based reward program that rewards developers based on the share of time that Roblox Premium subscribers engage in their experience. Under certain conditions, and in compliance with applicable law, these developers and creators are eligible to receive a cash payout based on the amount of accumulated earned Robux through our Developer Exchange Program. In order to be qualified for our Developer Exchange Program and eligible to exchange earned Robux for real-world currency, developers and creators must meet certain conditions, such as having earned the minimum amount of Robux required to qualify for the program, a verified developer account, and an account in good standing. On January 31, 2022, we reduced the minimum amount of earned Robux required to qualify for the program from 100,000 Robux to 50,000 Robux and subsequently on January 31, 2023, we further reduced the minimum requirement from 50,000 Robux to 30,000 Robux. The Company recognizes the expense associated with the Developer Exchange Program as Robux are earned by developers and creators that are qualified and registered in the Developer Exchange Program. Infrastructure and Trust & Safety Expense —Infrastructure and trust & safety expense consists primarily of expenses related to the operation of our data centers and technical infrastructure in order to deliver our Platform to our users and are expensed as incurred. Infrastructure expenses also include personnel costs and allocated overhead for employees and team members whose primary responsibilities relate to supporting our infrastructure and trust & safety initiatives. Research and Development Cost — Research and development costs consist primarily of personnel costs and allocated overhead and are expensed as incurred. Research and development costs also include expenses associated with our Game Fund program, which funds certain developers up front to develop new types of experiences for the Platform. Stock-Based Compensation Expense — The Company measures and recognizes stock-based compensation expense for all stock-based awards, including stock options, unregistered restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) granted to employees, directors, and non-employees, and stock purchase rights granted under the 2020 ESPP to employees, based on the estimated grant date fair value of the awards. The fair value of each stock option and stock purchase right granted is estimated using the Black-Scholes option-pricing model and is recognized as compensation expense on a straight-line basis over the requisite service period of the awards. The Black-Scholes option pricing model requires certain subjective inputs and assumptions, including the fair value of the Company’s Class A common stock, the expected term, risk-free interest rates, expected stock price volatility, and expected dividend yield of our Class A common stock. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. These assumptions and estimates are as follows: • Fair value of Class A common stock— Prior to the Direct Listing, the fair value of the shares of Class A common stock underlying the stock options and RSUs has historically been determined by the Company’s Board of Directors along with management as there was no public market for the underlying common stock. The Company’s Board of Directors along with management determined the fair value of the Company’s common stock by considering a number of objective and subjective factors including: contemporaneous third-party valuations of its common stock, the valuation of comparable companies, sales of the Company’s common and convertible preferred stock to outside investors in arms-length transactions, the Company’s operating and financial performance, the lack of marketability, and the general and industry specific economic outlook, amongst other factors. After the completion of the Direct listing, the fair value of the Company’s Class A common stock is determined based on the NYSE closing price on the date of grant. • Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term assumptions are determined based on the vesting terms, estimated exercise behavior, post-vesting cancellations and contractual lives of the awards. • Risk-free interest rates—The risk-free interest rate is based on the implied yields in effect at the time of the grant of U.S. Treasury notes with terms approximately equal to the expected term of the award. • Expected stock price volatility— Prior to the Direct Listing, the Company used the historical volatility of the Class A common stock price of similar publicly-traded peer companies. After the completion of the Direct Listing, the Company continues to use the historical volatility of the stock price of similar publicly traded peer companies since it has not established sufficient public trading history. • Expected dividend yield—The Company utilizes a dividend yield of zero, as it has no history or plan of declaring dividends on its common stock. RSUs granted by the Company prior to March 2021 vest upon the satisfaction of both a service-based vesting condition, which is typically four years, a |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. Overview and Summary of Significant Accounting Policies Organization and Description of Business —Roblox Corporation (the “Company” or “Roblox”) was incorporated under the laws of the state of Delaware in March 2004. The Company operates a free to use immersive platform for connection and communication (the “Roblox Platform” or “Platform”) where people come to create, play, work, learn, and connect with each other in experiences built by our global community of creators. Users are free to immerse themselves in experiences on the Roblox Platform and can acquire experience-specific enhancements or avatar items by using purchased Robux, our virtual currency. Any user can be a developer or creator on the Platform using Roblox Studio, a set of free software tools. Developers and creators build the experiences that are published on Roblox and can earn Robux by monetizing their experience, creating and selling or reselling avatar items, or creating and selling Roblox Studio plugins. Direct Listing —On March 10, 2021, the Company completed a direct listing of its Class A common stock (“Direct Listing”) on the New York Stock Exchange (“NYSE”). The Company incurred fees primarily related to financial advisory service, audit and legal expenses, in connection with the Direct Listing and recorded general and administrative expenses of $50.7 million during the first quarter of the fiscal year ended March 31, 2021. Immediately prior to the Direct Listing, all shares of outstanding convertible preferred stock were converted into an equivalent number of shares of Class A common stock. Basis of Presentation and Summary of Significant Accounting Policies Fiscal Year —The Company’s fiscal year ends on December 31. For example, references to fiscal 2023, 2022, and 2021 refer to the fiscal year ending December 31, 2023, December 31, 2022, and December 31, 2021, respectively. Basis of Presentation —The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation —The consolidated financial statements include the accounts of the Company and subsidiaries over which the Company has control. All intercompany transactions and balances have been eliminated. The consolidated financial statements include 100% of the accounts of wholly owned and majority owned subsidiaries, and the ownership interest of minority investors is recorded as noncontrolling interest. Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, the estimated period of time the virtual items are available to the user, which is estimated as the average lifetime of a paying user, and the estimated amount of consumable and durable virtual items purchased for which the Company lacks specific information that is used for revenue recognition, the estimated amount of expected breakage related to prepaid card sales, useful lives of property and equipment and intangible assets, fair value of assets and liabilities acquired through acquisitions, accrued liabilities (including accrued developer exchange fees), contingent liabilities, valuation of deferred tax assets and liabilities, stock-based compensation expense, the discount rate used in measuring our operati ng lease liabilities, the carrying value of operating lease right-of-use assets, evaluation of recoverability of goodwill, intangible assets and long-lived assets, and as necessary, estimates of fair value to measure impairment losses. Management believes that the estimates, and judgments upon which they rely, are reasonable based upon information available to them at the time that these estimates and judgments are made. Actual results could differ from those estimates and any such differences may be material to the consolidated financial statements. To the extent that there are material differences between these estimates and actual results, the Company’s consolidated financial statements will be affected. Foreign Currency Transactions — The functional currency of the Company’s international subsidiaries is the U.S. dollar, with the exception of a Chinese subsidiary wholly owned by Roblox China Holding Corp., as discussed in Note 15, “Joint Venture” to the notes to these consolidated financial statements. We translate the financial statements of our non-U.S. dollar functional subsidiary to U.S. dollars using the period-end exchange rate for assets and liabilities and the average exchange rate for the period for revenues and expenses. The effects of foreign currency translation are included in stockholders’ equity/(deficit) and periodic movements are summarized as a line item in the consolidated statements of comprehensive income. We reflect foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency, which includes gains and losses from the remeasurement of assets and liabilities, as a component of other income/(expense), net. Segments — The Company operates as a single operating and reportable segment, which is at the consolidated entity level. The chief operating decision maker of the Company is its chief executive officer (“CEO”), who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. Revenue Recognition Revenue Recognition Policy In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when control of the service is transferred to the customer. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for these services. To achieve the core principle of this standard, the Company determines revenue recognition by: • identifying the contract, or contracts, with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, the Company satisfies performance obligations by transferring the promised services. The Company derives substantially all of its revenue from the sale of virtual items on the Roblox Platform. Roblox Platform The Company operates the Roblox Platform as live services that allow users to play and socialize with others for free. Within the experience, however, users can purchase virtual currency (“Robux”) to ultimately obtain virtual items to enhance their social experience. Proceeds from the sale of Robux are initially recorded in deferred revenue and recognized as revenue as a user purchases and uses virtual items. The Company’s identified performance obligation is to provide users with the ability to acquire, use, and hold virtual items on the Roblox Platform over the estimated period of time the virtual items are available to the user or until the virtual items are consumed. Users can purchase Robux as one-time purchases or through monthly subscriptions via payment processors or through prepaid cards. Payments from users are non-refundable and relate to non-cancellable contracts for a fixed price that specify Company’s obligations. Revenue is recorded net of taxes assessed by government authorities that are both imposed on and concurrent with specific revenue transactions between the Company and its users, and estimated chargebacks and refunds. The satisfaction of the Company’s performance obligation is dependent on the nature of the virtual item purchased and as a result, the Company categorizes its virtual items as either consumable or durable. • Consumable virtual items represent items that can be consumed by a specific user action. Common characteristics of consumable virtual items may include items that are no longer displayed on the user’s inventory after a short period of time or do not provide the user any continuing benefit following consumption. For the sale of consumable virtual items, the Company recognizes revenue as the items are consumed. • Durable virtual items represent items which result in a persistent change to a users’ character or item set (e.g., virtual hat, pet, or house). These items are generally available to the customer to hold, use, or display for as long as they are on the Roblox Platform. The Company recognizes revenue from the sale of durable virtual items ratably over the estimated period of time the items are available to the user which is estimated as the average lifetime of a paying user. To separately account for consumable and durable virtual items, the Company specifically identifies each purchase for the majority of virtual items purchased on the Roblox Platform. For the remaining population, the Company estimates the amount of consumable and durable virtual items purchased based on data from specifically identified purchases and the expected behavior of the users within similar experiences. The estimation of consumable and durable virtual items purchased for the population of purchases not specifically identified requires management’s judgment as the Company evaluates and estimates the expected behavior of users in the population using information from known purchases in similar experiences. The average lifetime of a paying user estimate is calculated based on historical monthly retention data for each user cohort to project future participation on the Roblox Platform. Determining the estimated average lifetime of a paying user requires management’s judgment as the Company analyzes the most recent trends in player cohort activity and other qualitative factors, including paying user behavior (e.g. impacts due to macroeconomic factors such as COVID-19), existing and new competition from a variety of entertainment resources for our users, the availability of the Roblox Platform across markets and user demographics, and other factors. The Company also considers results from prior analyses in determining the estimated average lifetime of a paying user. The Company believes this estimate is the best representation of the average life of the durable virtual items. The estimated paying user life was 28 months, 28 months, and 23 months as of December 31, 2023, 2022, and 2021, respectively. As part of the process above, in the first quarter of 2022, the Company updated its estimated paying user life from 23 months to 25 months, which was subsequently updated again to 28 months in the third quarter of 2022, where it stayed for the entire year ended December 31, 2023. Based on the carrying amount of deferred revenue and deferred cost of revenue as of December 31, 2021, these changes in estimates resulted in a decrease in revenue of $344.9 million and a decrease in cost of revenue of $79.3 million during the year ended December 31, 2022. The Company offers prepaid cards through online and physical retailers, as well as on the Company website. The Company estimates expected breakage by taking into consideration historical patterns of redemption and escheatment laws as applicable. Principal Agent Considerations The Company evaluates the sales of Robux via third-party payment processors to determine whether its revenues should be reported gross or net of fees either retained by the payment processor or paid to the developers and creators (“Developer Exchange Fees”). The Company is the principal in the transaction with the end user as a result of controlling, hosting, and integrating the delivery of the virtual items to the end user. The Company records revenue gross as a principal and records fees paid to payment processors as a component of cost of revenue and fees paid to developers and creators as a component of developer exchange fees expense. Other Revenue Other revenue primarily consists of revenue from advertising, licenses, and royalties. The Company recognizes revenue based on the performance obligations of the underlying agreements, in an amount that reflects the consideration that the Company expects to be entitled to. Cost of Revenue —Cost of revenue primarily consists of payment processing fees charged by various distribution channels, as well as costs associated with the printing of prepaid cards. Deferred Cost of Revenue —The Company defers contract costs that are direct and incremental to obtaining user contracts (i.e., sales of Robux). Deferred cost of revenue consists of payment processing fees charged by third-party payment processors. Payment processing fees are amortized over the estimated period of time the virtual items are available to the user on the Roblox Platform (based on the nature of the virtual item as either consumable or durable) in proportion to the revenue recognized. The Company classifies deferred cost of revenue as short-term or long-term based on when the Company expects to recognize the expense. Deferred cost of revenue is periodically reviewed for impairment. Concentration of Credit Risk and Significant Customers —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, long-term investments and accounts receivables. Cash is deposited with high quality financial institutions and may, at times, exceed federally insured limits. Management believes that the financial institutions that hold the Company’s cash deposits are financially creditworthy and, accordingly, minimal credit risk exists with respect to those balances. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal interest rate risk. As it relates to cash equivalents, short-term investments, and long-term investments, the Company’s investment policy limits the amount of credit exposure in its portfolio by imposing credit rating minimums and limiting purchases by security type and sector. The Company uses various distribution channels to collect and remit payments from users. As of December 31, 2023 and 2022, one distribution channel accounted for 30% and 37% of our accounts receivable, respectively, while a second distribution channel accounted for 26% and 19% of our accounts receivable, respectively. For the years ended December 31, 2023, 2022, and 2021, one distribution channel processed 30%, 32%, and 35% of our overall revenue transactions, respectively, and a second distribution channel processed 17%, 18%, and 19% of our overall revenue transactions, respectively. Fair Value Hierarchy —Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity, associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 —Inputs that are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Cash, Cash Equivalents and Restricted Cash —Cash and cash equivalents primarily consisted of cash in hand and money market instruments with maturities of 90 days or less from the date of purchase. We had no restricted cash balances as of December 31, 2023 and 2022. Short-Term and Long-Term Investments —Realized gains and losses for all investments are determined using the specific-identification method and are reflected as a component of other income/(expense), net in the consolidated statements of operations. Debt Securities Short-term and long-term investments include corporate debt securities, commercial paper, U.S. Treasury securities, U.S. agency securities, foreign government securities, and certificates of deposits. Based on our intentions, all debt investments are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded as a separate component of other comprehensive income, net of tax. The Company determines the appropriate classification of its investments as short-term or long-term at the time of purchase and reevaluates such determination at each reporting period based on their respective maturity dates and the Company’s reasonable expectation with regard to those investments (e.g. expectations of future sales or redemptions). For debt securities in an unrealized loss position, we first consider whether we intend to or it is more likely than not that we will be required to sell the individual security prior to recovery of its amortized cost basis and if so, we adjust the carrying value of security down to its fair value, with the amount of the write-down recorded as a realized loss within other income/(expense), net. Otherwise, we determine whether a decline in fair value is attributable to a partial or full credit loss by reviewing factors such as the extent to which the fair value is less than the amortized cost basis, changes in interest rates since the purchase of the security, the financial condition of the issuer, including changes in credit ratings, the remaining payment terms of the security, as well as any adverse conditions specifically related to the security, the issuer’s industry or its geographic area. If a credit loss exists, we adjust the carrying value by recording expense within other income/(expense), net equal to the amount of the credit loss, with such amount limited to the amount of the unrealized loss. Subsequent recoveries of fair value originally attributed to a credit loss are subsequently recognized as income within other income/(expense), net. Finally, any unrealized loss not deemed to be attributable to a credit loss is recognized as component of other comprehensive income/(loss), net of tax. For purposes of identifying and measuring credit losses, the Company excludes any related accrued interest from both the fair value and amortized cost basis of the investment. Accrued interest receivable, net of the allowance for credit losses (if any), is recorded as a component of prepaid expenses and other current assets in our consolidated financial statements. Equity Securities with Readily Determinable Fair Value Short-term investments include mutual fund investments related to the Company’s nonqualified deferred compensation plan, which are held in a rabbi trust. The Company classifies these investments as trading securities as the rabbi trust actively manages the asset allocation to match the participants’ hypothetical fund allocations. The Company considers investments held in the rabbi trust to be restricted given their withdrawal and general use is legally restricted. All equity inve stments are reported at fair value, with unrealized gains and losses recorded within other income/(expense), net in our consolidated statement of operations. Accounts Receivable and Related Allowances — Accounts receivable represent amounts due to us based on contractual obligations with our customers. Payments made by the Company’s users are collected by payment processors and remitted to the Company generally within 30 days of invoicing. The Company maintains allowances for potential credit losses when deemed necessary. The Company has not experienced any material credit losses to date. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, it records a specific allowance as a reduction to the accounts receivable balance to reduce it to its net realizable value. In addition, the Company holds a reserve for chargebacks and refunds based on historical data and current trends and projections. Specific allowances, chargeback, and refund reserves have not been material for any of the periods presented. Property and Equipment—Net — Property and equipment are recorded at historical cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight line basis over the estimated useful lives of the respective assets. Repair and maintenance costs are expensed as incurred. The estimated useful life for each asset category is as follows: Property and Equipment Estimated Useful Life Servers and related equipment 5 years Computer hardware and software 2 - 5 years Furniture and fixtures 2 years Leasehold improvements Shorter of remaining lease term or estimated useful life Goodwill and Intangible Assets —Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. Goodwill is not amortized but rather tested for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation by comparing the estimated fair value of our single reporting unit, determined using the Company’s market capitalization as of the testing date, to its carrying value. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during any of the periods presented. Intangible assets with finite lives are carried at cost, less accumulated amortization. Intangible assets with finite lives are generally amortized on a straight-line basis over the estimated useful life of the respective asset, generally up to 5 years, or in the case of acquired patents, up to 10 years. Business Combinations and Asset Acquisitions —To determine whether a transaction is accounted for as an asset acquisition or business combination, the Company applies a screen test to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen test does not result in substantially all of the fair value concentrated in a single identifiable asset or group of similar identifiable assets, the Company performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test indicates that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination. For business combinations, the purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their respective estimated fair values. The excess of the fair value of purchase consideration over their fair values is recorded as goodwill. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates . As a result, during the measurement period, which may be up to one year following the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded within the accompanying consolidated statements of operations. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired. Software Development Costs —The Company incurs costs related to developing the Roblox Platform and related support systems. The Company capitalizes development costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Development costs meeting the Company’s capitalization criteria were not material during the periods presented. Impairment of Long-Lived Assets— The Company periodically evaluates the carrying value of long-lived assets to be held and used when indicators of impairment exist. The carrying value of a long-lived asset to be held and used is considered impaired when the estimated separately identifiable undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying value of the asset. In that event, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company’s business strategy and internal forecasts. Developer Exchange Fees Expense —The Company has established an incentive program for developers and creators to build and operate virtual experiences within the Roblox environment. Developers and creators can earn Robux through the sale of access to their experiences and enhancements in their experiences, the sale of content and tools between developers through the Creator Store, and the sale of items to users through the Marketplace. Developers can also earn Robux through our engagement-based reward program that rewards developers based on the share of time that Roblox Premium subscribers engage in their experience. Under certain conditions, and in compliance with applicable law, these developers and creators are eligible to receive a cash payout based on the amount of accumulated earned Robux through our Developer Exchange Program. In order to be qualified for our Developer Exchange Program and eligible to exchange earned Robux for real-world currency, developers and creators must meet certain conditions, such as having earned the minimum amount of Robux required to qualify for the program, a verified developer account, and an account in good standing. On January 31, 2022, we reduced the minimum amount of earned Robux required to qualify for the program from 100,000 Robux to 50,000 Robux and subsequently on January 31, 2023, we further reduced the minimum requirement from 50,000 Robux to 30,000 Robux. The Company recognizes the expense associated with the Developer Exchange Program as Robux are earned by developers and creators that are qualified and registered in the Developer Exchange Program. Infrastructure and Trust & Safety Expense —Infrastructure and trust & safety expense consists primarily of expenses related to the operation of our data centers and technical infrastructure in order to deliver our Platform to our users and are expensed as incurred. Infrastructure expenses also include personnel costs and allocated overhead for employees and team members whose primary responsibilities relate to supporting our infrastructure and trust & safety initiatives. Research and Development Cost — Research and development costs consist primarily of personnel costs and allocated overhead and are expensed as incurred. Research and development costs also include expenses associated with our Game Fund program, which funds certain developers up front to develop new types of experiences for the Platform. Stock-Based Compensation Expense — The Company measures and recognizes stock-based compensation expense for all stock-based awards, including stock options, unregistered restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) granted to employees, directors, and non-employees, and stock purchase rights granted under the 2020 ESPP to employees, based on the estimated grant date fair value of the awards. The fair value of each stock option and stock purchase right granted is estimated using the Black-Scholes option-pricing model and is recognized as compensation expense on a straight-line basis over the requisite service period of the awards. The Black-Scholes option pricing model requires certain subjective inputs and assumptions, including the fair value of the Company’s Class A common stock, the expected term, risk-free interest rates, expected stock price volatility, and expected dividend yield of our Class A common stock. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. These assumptions and estimates are as follows: • Fair value of Class A common stock— Prior to the Direct Listing, the fair value of the shares of Class A common stock underlying the stock options and RSUs has historically been determined by the Company’s Board of Directors along with management as there was no public market for the underlying common stock. The Company’s Board of Directors along with management determined the fair value of the Company’s common stock by considering a number of objective and subjective factors including: contemporaneous third-party valuations of its common stock, the valuation of comparable companies, sales of the Company’s common and convertible preferred stock to outside investors in arms-length transactions, the Company’s operating and financial performance, the lack of marketability, and the general and industry specific economic outlook, amongst other factors. After the completion of the Direct listing, the fair value of the Company’s Class A common stock is determined based on the NYSE closing price on the date of grant. • Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term assumptions are determined based on the vesting terms, estimated exercise behavior, post-vesting cancellations and contractual lives of the awards. • Risk-free interest rates—The risk-free interest rate is based on the implied yields in effect at the time of the grant of U.S. Treasury notes with terms approximately equal to the expected term of the award. • Expected stock price volatility— Prior to the Direct Listing, the Company used the historical volatility of the Class A common stock price of similar publicly-traded peer companies. After the completion of the Direct Listing, the Company continues to use the historical volatility of the stock price of similar publicly traded peer companies since it has not established sufficient public trading history. • Expected dividend yield—The Company utilizes a dividend yield of zero, as it has no history or plan of declaring dividends on its common stock. RSUs granted by the Company prior to March 2021 vest upon the satisfaction of both a service-based vesting condition, which is typically four years, a |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes revenue by region based on the billing country of users (in thousands, except percentages): Year Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage United States and Canada (1) $ 1,803,812 64 % $ 1,465,955 66 % $ 1,298,938 68 % Europe 505,633 18 404,431 18 357,656 19 Asia-Pacific, including Australia and New Zealand 286,930 10 204,261 8 145,464 7 Rest of world 202,899 7 150,405 7 117,123 6 Total $ 2,799,274 100 % $ 2,225,052 100 % $ 1,919,181 100 % (1) The Company’s revenues in the U.S. were 60%, 62%, and 63% of consolidated revenues for each of the years ended December 31, 2023, 2022, and 2021, respectively. No individual country, other than the United States, exceeded 10% of the Company’s total revenue for any period presented. Durable virtual items accounted for 91%, 90%, and 89% of virtual item-related revenue in the years ended December 31, 2023, 2022, and 2021, respectively. Consumable virtual items accounted for 9%, 10%, and 11% of virtual item-related revenue in the years ended December 31, 2023, 2022, and 2021, respectively. Deferred Revenue The Company receives payments from its users based on the payment terms established in its contracts. Such payments are initially recorded to deferred revenue and are recognized into revenue as the Company satisfies its performance obligations. The aggregate amount of revenue allocated to unsatisfied performance obligations is included in our deferred revenue balances. The increase in deferred revenue for the year ended December 31, 2023 was driven by sales during the period exceeding revenue recognized from the satisfaction of our performance obligations, which includes the revenue recognized during the period that was included in the current portion of deferred revenue at the beginning of the period. During the year ended December 31, 2023, we recognized all of the revenue that was included in the $1,941.9 million current deferred revenue balance as of December 31, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 3. Leases The Company has operating leases for real estate and co-located data centers. The components of lease expense were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease expense $ 139,482 $ 90,933 $ 53,442 Variable and short-term lease expense $ 31,655 $ 11,586 $ 3,860 As of December 31, 2023, and December 31, 2022, we had short-term operating lease liabilities totaling $111.3 million and $73.2 million, respectively, included within accrued expenses and other current liabilities The following table presents future lease payments under the Company’s non-cancellable operating leases as of December 31, 2023 (in thousands): Year ending December 31, 2024 $ 97,524 2025 146,863 2026 133,076 2027 112,626 2028 96,542 Thereafter 421,443 Total lease payments $ 1,008,074 Less: imputed interest (1) (250,275) Present value of lease liabilities $ 757,799 (1) Calculated using each lease’s incremental borrowing rate. In addition, the Company has executed operating leases for real estate and co-located data centers which have not commenced as of December 31, 2023. The non-cancellable lease payments for these leases totaled $188.0 million as of December 31, 2023, with lease terms ranging between 7 to 10 years. The following table presents the weighted average remaining lease term and discount rates as of December 31, 2023, and December 31, 2022: As of December 31, 2023 2022 Weighted average remaining lease term (years) 7.9 7.8 Weighted average discount rate 6.3 % 5.5 % Supplemental cash and noncash information related to operating leases is as follows (in thousands): Year ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities (1) $ 105,337 $ 70,515 $ 52,942 Lease liabilities arising from obtaining new right-of-use assets (noncash) $ 256,500 $ 373,844 $ 70,068 (1) The years ended December 31, 2023, 2022, and 2021 excludes $16.6 million, $1.8 million, and $9.1 million, respectively, of leasehold incentives received from the landlord. On February 11, 2023, the Company executed a sublease as sub-lessor pursuant to which it subleased a total of approximately 78,911 square feet of its San Mateo, California corporate headquarters (the “San Mateo Headquarters”) to the sub-lessee for a lease term of approximately four years (the “2023 Sub-Lessor Agreement”). The total lease payments due to the Company under the 2023 Sub-Lessor Agreement are $22.2 million over the lease term and the Company provided possession to the sub-lessee to one of the floors in the second quarter of 2023 and the remaining floor in the third quarter of 2023. As a result of the 2023 Sub-Lessor Agreement, the Company recognized a $7.0 million impairment loss within general and administrative expenses in its consolidated financial statements during the year ended December 31, 2023, which included $4.8 million related to the San Mateo Headquarters’ operating lease right-of-use asset and $2.2 million related to property and equipment, net associated with the San Mateo Headquarters. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Investments | 4. Cash Equivalents and Investments Financial Assets The following is a summary of the Company’s cash equivalents and short-term and long-term investments (in thousands): As of December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Debt Securities Level 1 Money market funds $ 614,888 $ — $ — $ 614,888 $ 614,888 $ — $ — U.S. Treasury securities 1,692,700 2,007 (2,547) 1,692,160 — 1,155,218 536,942 Subtotal 2,307,588 2,007 (2,547) 2,307,048 614,888 1,155,218 536,942 Level 2 U.S. agency securities 286,007 27 (197) 285,837 — 137,151 148,686 Foreign government securities 12,866 74 (28) 12,912 — 1,489 11,423 Commercial paper 184,465 — — 184,465 14,827 169,638 — Corporate debt securities 396,171 1,992 (1,234) 396,929 — 50,581 346,348 Subtotal 879,509 2,093 (1,459) 880,143 14,827 358,859 506,457 Total Debt Securities $ 3,187,097 $ 4,100 $ (4,006) $ 3,187,191 $ 629,715 $ 1,514,077 $ 1,043,399 Equity Securities Level 1 Mutual funds (1) $ 731 $ — $ 731 $ — Total Equity Securities $ 731 $ — $ 731 $ — Total Investments $ 3,187,097 $ 4,100 $ (4,006) $ 3,187,922 $ 629,715 $ 1,514,808 $ 1,043,399 (1) The equity securities relate to the Company’s nonqualified deferred compensation plan and are held in a rabbi trust. Refer to Note 14, “Employee and Director Benefits”, to the notes to the consolidated financial statements for more information. As of December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Debt Securities Level 1 Money market funds $ 1,903,880 $ — $ — $ 1,903,880 $ 1,903,880 $ — $ — Total Investments $ 1,903,880 $ — $ — $ 1,903,880 $ 1,903,880 $ — $ — As of December 31, 2023, all of the Company’s short-term debt investments have contractual maturities of one year or less and all of the Company’s long-term debt investments have contractual maturities of between one Changes in market interest rates, credit risk of borrowers and overall market liquidity, amongst other factors, may cause our short-term and long-term debt investments to fall below their amortized cost basis, resulting in unrealized losses. For those debt securities in an unrealized loss position as of December 31, 2023, the unrealized losses were primarily driven by increases in interest rates following the date of purchase and the Company does not intend to sell, nor is it more likely than not it will be required to sell, such securities before recovering the amortized cost basis. The following table presents fair values and gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ 486,424 $ (2,547) $ — $ — $ 486,424 $ (2,547) U.S. agency securities 182,475 (197) — — 182,475 (197) Foreign government securities 7,374 (28) — — 7,374 (28) Corporate debt securities 240,913 (1,234) — — 240,913 (1,234) Total $ 917,186 $ (4,006) $ — $ — $ 917,186 $ (4,006) |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 5. Acquisitions Speechly, Inc. On September 18, 2023 (the “Speechly Acquisition Date”), the Company acquired all outstanding equity interests of Speechly, Inc. and its wholly owned Finnish subsidiary Speechly Oy (together, “Speechly”). Speechly is a privately held company, that operates a speech recognition software focused on voice moderation. The acquisition has been accounted for as a business combination. The consideration totaled $10.1 million, which included (i) $4.8 million of cash paid on the Speechly Acquisition Date and (ii) $5.3 million of cash held back until certain post-acquisition conditions are satisfied. The following table summarizes the Company’s preliminary allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Speechly Acquisition Date (in thousands): September 18, 2023 Cash and cash equivalents $ 970 Other current assets acquired 111 Intangible assets, net Developed technology, useful life of five years 2,800 Goodwill 7,536 Other current liabilities assumed $ (1,117) Other long-term liabilities assumed (182) Total purchase price $ 10,118 Goodwill is attributable to the assembled workforce and anticipated synergies arising from the acquisition. The goodwill recognized is not expected to be deductible for income tax purposes. Byfron Technologies, LLC Acquisition On October 11, 2022 (the “Byfron Acquisition Date”), the Company acquired all outstanding equity interests of Byfron Technologies, LLC (“Byfron”), a privately-held company that operates a security and anti-cheat software for game publishers. The acquisition has been accounted for as a business combination. The consideration totaled $9.6 million, which included $2.0 million of cash to be held back for 18 months following the Byfron Acquisition Date. The aggregate purchase consideration comprised of the following (in thousands): Fair Value Cash paid $ 7,603 Cash holdback 2,000 Total purchase price $ 9,603 In connection with the acquisition, the Company also entered into agreements with the Byfron founders, which provide them $9.6 million over a three year service period following the Byfron Acquisition Date, subject to their continued service with the Company during that period. The agreements were determined to primarily benefit the Company and were recognized separate from the business combination. The expense associated with these agreements is being recognized ratably over the requisite service period of three years as a component of research and development expense. The following table summarizes the Company’s allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Byfron Acquisition Date (in thousands): October 11, 2022 Cash and cash equivalents $ 380 Goodwill 3,882 Identified intangible assets 5,500 Other assets 169 Other current liabilities $ (328) Total purchase price $ 9,603 The following table presents details of the identifiable assets acquired (in thousands, except estimated useful life): Carrying Estimated Useful Life (Years) Developed technology $ 5,500 5 Total $ 5,500 Goodwill is primarily attributable to the assembled workforce and anticipated synergies arising from the acquisition. The goodwill recorded in the acquisition is expected to be deductible for income tax purposes. Hamul, Inc. Acquisition On April 1, 2022 (the “Hamul Acquisition Date”), the Company acquired all outstanding equity interests of Hamul, Inc. (“Hamul”) a privately-held company that provides a platform for connecting gaming communities. The acquisition has been accounted for as a business combination. The fair value of the consideration transferred was $19.3 million, which consisted of $9.2 million paid in cash and 0.4 million shares of Class A common stock with a fair value of $4.0 million. The aggregate purchase consideration was comprised of the following (in thousands): Fair Value Cash paid $ 9,185 Common stock issued 4,009 Replacement awards attributable to pre-acquisition service 6,129 Total purchase price $ 19,323 In connection with the acquisition, the Company entered into a stock-based consideration revesting agreement with the Hamul founders. The portion of the fair value of the common stock associated with pre-acquisition service of the Hamul founders represented a component of the total purchase consideration, as presented above. The remaining fair value of $7.6 million of these issued shares was excluded from the purchase price. These shares, which are subject to the recipients’ continued service with the Company, are being recognized ratably as stock-based compensation expense as a component of research and development expense over the requisite service period of three years following the Hamul Acquisition Date. The total purchase consideration was allocated to the tangible and intangible assets acquired, and liabilities assumed, based upon their respective fair values as of the date of the acquisition. Management determined the fair values based on a number of factors. The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill is attributable to the assembled workforce and anticipated synergies arising from the acquisition. The goodwill recognized is not expected to be deductible for income tax purposes. The following table summarizes the Company’s allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Hamul Acquisition Date (in thousands): April 1, 2022 Cash and cash equivalents $ 3,020 Goodwill 12,382 Identified intangible assets 4,500 Deferred tax liabilities (579) Total purchase price $ 19,323 The following table presents details of the identifiable assets acquired (in thousands, except estimated useful life): Carrying Estimated Useful Life (Years) Developed technology $ 4,500 5 Total $ 4,500 Guilded Acquisition On August 16, 2021 (the “Guilded Acquisition Date”), the Company acquired all outstanding equity interests of Guilded, Inc., (“Guilded”), a privately-held company that operates a communications platform for connecting gaming communities. The acquisition has been accounted for as a business combination. The fair value of the consideration transferred was $77.6 million, which consisted of $46.3 million paid in cash and 0.5 million shares of Roblox’s Class A common stock with a fair value of $31.3 million. The aggregate purchase consideration for Guilded was comprised of the following (in thousands): Fair Value Cash paid $ 46,285 Roblox Class A common stock issued 22,744 Replacement awards attributable to pre-acquisition service 8,530 Total purchase price $ 77,559 The acquisition-related costs were not material and were recorded as general and administrative expenses in the Company’s consolidated statements of operations for the year ended December 31, 2021. In connection with the acquisition, the Company entered into a stock-based consideration revesting agreement with the Guilded founder. The portion of the fair value of the common stock associated with pre-acquisition service of the Guilded founder represented a component of the total purchase consideration, as presented above. The remaining fair value of $8.5 million of these issued shares was excluded from the purchase price. These shares, which are subject to the recipients’ continued service with the Company, are being recognized ratably as stock-based compensation expense as a component of research and development expense over the requisite service period of three years. The total purchase consideration of the Guilded acquisition was allocated to the tangible and intangible assets acquired, and liabilities assumed, based upon their respective fair values as of the date of the acquisition. Management determined the fair values based on a number of factors, including a valuation from an independent third-party valuation firm. The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill is attributable to the assembled workforce and anticipated synergies arising from the acquisition. The goodwill recorded in the acquisition is not deductible for income tax purposes. The following table summarizes the Company’s allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Guilded Acquisition Date (in thousands): August 16, 2021 Cash and cash equivalents $ 593 Goodwill 58,503 Identified intangible assets 19,600 Deferred tax liabilities (999) Accrued expenses and other current liabilities (138) Total purchase price $ 77,559 The following table presents details of the identifiable intangible assets acquired at the Guilded Acquisition Date (in thousands, except estimated useful life): Carrying Amount Estimated Useful Life (Years) Developed technology $ 19,100 5 Trade name 500 5 Total $ 19,600 Other Acquisitions During the year ended December 31, 2021, the Company completed two individually immaterial acquisitions. These transactions were accounted for as asset acquisitions as they did not meet the definition of a business. The acquired assets consisted entirely of assembled workforce and had a fair value of $8.5 million with an estimated useful life of 3 years. The aggregate purchase consideration consisted of $8.5 million, paid in cash. All of the acquisitions described above are not material to the Company for the periods presented and therefore pro forma information has not been presented. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table represents the changes to goodwill from December 31, 2021 to December 31, 2023 (in thousands): Carrying Amount Balance as of December 31, 2021 $ 118,071 Additions from acquisitions 16,264 Balance as of December 31, 2022 $ 134,335 Additions from acquisitions 7,536 Foreign currency translation adjustments 258 Balance as of December 31, 2023 $ 142,129 There are no accumulated impairment losses for any period presented. Intangible Assets The following tables present details of the Company’s finite-lived intangible assets as of December 31, 2023 and December 31, 2022 (in thousands): As of December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 75,455 $ (39,411) $ 36,044 Patents 14,200 (650) 13,550 Assembled workforce 10,000 (7,374) 2,626 Trade name 500 (233) 267 Total intangible assets $ 100,155 $ (47,668) $ 52,487 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 72,059 $ (24,240) $ 47,819 Assembled workforce 10,000 (4,042) 5,958 Trade name 500 (133) 367 Total intangible assets $ 82,559 $ (28,415) $ 54,144 The above tables do not include $0.6 million of indefinite lived intangible assets as of December 31, 2023 and December 31, 2022. As of December 31, 2023, the weighted-average remaining useful lives of our finite-lived intangible assets were 2.4 years for developed technology, 8.7 years for patents, 0.8 years for assembled workforce, 2.7 years for trade names, and 3.2 years in total, for all finite-lived intangible assets. Amortization expense related to our finite-lived intangible assets was $19.3 million, $16.4 million, and $10.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. Expected future amortization expenses related to the intangible assets as of December 31, 2023 are as follows (in thousands): Year ending December 31: 2024 $ 18,954 2025 15,727 2026 6,692 2027 3,129 2028 1,934 Thereafter 6,051 Total remaining amortization $ 52,487 |
Other Balance Sheet Components
Other Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
Other Balance Sheet Components [Abstract] | |
Other Balance Sheet Components | 7. Other Balance Sheet Components Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following (in thousands): As of December 31, 2023 2022 Prepaid expenses $ 48,555 $ 45,173 Accrued interest receivable 14,697 6,026 Other current assets 11,297 10,442 Total prepaid expenses and other current assets $ 74,549 $ 61,641 Property and equipment, net Property and equipment, net, consisted of the following (in thousands): As of December 31, 2023 2022 Servers and related equipment and software $ 914,989 $ 741,418 Computer hardware and software licenses 43,732 23,647 Furniture and fixtures 520 446 Leasehold improvements 101,785 69,311 Construction in progress 77,043 24,306 Total property and equipment 1,138,069 859,128 Less accumulated depreciation and amortization (442,709) (266,782) Property and equipment—net $ 695,360 $ 592,346 Construction in progress primarily relates to leasehold improvements for the Company’s leased office buildings and network equipment infrastructure to support the Company’s data centers. Depreciation and amortization expense of property and equipment was $188.9 million, $113.7 million, and $64.9 million for years ended December 31, 2023, 2022, and 2021, respectively. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of December 31, 2023 2022 Accrued operating expenses $ 51,921 $ 80,122 Short term operating lease liabilities 111,293 73,235 Accrued interest on the 2030 Notes 6,458 6,458 Taxes payable 59,632 49,361 Accrued compensation and other employee related liabilities 32,125 21,003 Other current liabilities 9,692 5,827 Total accrued expenses and other current liabilities $ 271,121 $ 236,006 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt 2030 Notes On October 29, 2021, the Company issued $1.0 billion aggregate principal amount of its 3.875% Senior Notes due 2030 (the “2030 Notes”). The 2030 Notes mature on May 1, 2030. The 2030 Notes bear interest at a rate of 3.875% per annum. Interest on the 2030 Notes is payable semi-annually in arrears on May 1 and November 1 of each year, commencing on May 1, 2022. The aggregate proceeds from offering of the 2030 Notes were approximately $987.5 million, after deducting lenders costs and other issuance costs incurred by the Company. The issuance costs of $12.5 million are amortized into interest expense using the effective interest method over the term of the 2030 Notes. The Company may voluntarily redeem the 2030 Notes, in whole or in part, under the following circumstances: (1) at any time prior to November 1, 2024, the Company may on any one or more occasions redeem up to 40% of the aggregate principal amount of the 2030 Notes at a redemption price of 103.875% of the principal amount including accrued and unpaid interest, if any, with the net cash proceeds of certain equity offerings; provided that (1) at least 50% of the aggregate principal amount of 2030 Notes originally issued remains outstanding immediately after the occurrence of such redemption (excluding 2030 Notes held by the Company and its subsidiaries); and (2) the redemption occurs within 180 days of the date of the closing of such equity offerings. (2) on or after November 1, 2024, the Company may redeem all or a part of the 2030 Notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date: Year Percentage 2024 101.938 % 2025 100.969 % 2026 and thereafter 100.000 % (3) at any time prior to November 1, 2024, the Company may redeem all or a part of the 2030 Notes at a redemption price equal to 100% of the principal amount of 2030 Notes redeemed, including accrued and unpaid interest, if any, plus the applicable “make-whole” premium set forth in the indenture governing the 2030 Notes (the “Indenture”) as of the date of such redemption; and (4) in connection with any tender offer for the 2030 Notes, including an offer to purchase (as defined in the Indenture), if holders of not less than 90% in aggregate principal amount of the outstanding 2030 Notes validly tender and do not withdraw such notes in such tender offer and the Company (or any third party making such a tender offer in lieu of the Company) purchases all of the 2030 Notes validly tendered and not withdrawn by such holders, the Company (or such third party) will have the right, upon not less than 10, but not more than 60 days’ prior notice, given not more than 30 days following such purchase date to the holders of the 2030 Notes and the trustee, to redeem all of the 2030 Notes that remain outstanding following such purchase at a redemption price equal to the price offered to each holder of 2030 Notes (excluding any early tender or incentive fee) in such tender offer plus to the extent not included in the tender offer payment, accrued and unpaid interest, if any. In certain circumstances involving a change of control triggering event (as defined in the Indenture), the Company will be required to make an offer to repurchase all, or at the holder’s option, any part, of each holder’s 2030 Notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the applicable repurchase date. The 2030 Notes are unsecured obligations and the Indenture contains covenants limiting the Company and its subsidiaries’ ability to: (i) create certain liens and enter into sale and lease-back transactions; (ii) create, assume, incur or guarantee certain indebtedness; or (iii) consolidate or merge with or into, or sell or otherwise dispose of all of substantially all of the Company and its subsidiaries’ assets to another person. These covenants are subject to a number of limitations and exceptions set forth in the Indenture and non-compliance with these covenants may result in the accelerated repayment of the 2030 Notes and any accrued and unpaid interest. As of December 31, 2023, the Company was in compliance with all of its covenants under the Indenture. The net carrying amount of the 2030 Notes, which is presented as a component of long-term debt in the Company’s consolidated financial statements, was as follows (in thousands): As of December 31, 2023 2022 2030 Notes Principal $ 1,000,000 $ 1,000,000 Unamortized issuance costs (9,700) (11,016) Net carrying amount $ 990,300 $ 988,984 Interest expense related to the 2030 Notes was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Contractual interest expense $ 38,750 $ 38,642 $ 6,781 Amortization of debt issuance costs 1,316 1,261 216 Total interest expense $ 40,066 $ 39,903 $ 6,997 The debt issuance costs for the 2030 Notes are amortized to interest expense over the term of the 2030 Notes using an annual effective interest rate of 4.05%. As of December 31, 2023, and 2022, the estimated fair value of the 2030 Notes was approximately $891.8 million and $788.2 million, respectively, determined based on the last trading price of the 2030 Notes during the reporting period (a Level 2 input). Future interest and principal payments related to the 2030 Notes, as of December 31, 2023, were as follows (in thousands): Year ending December 31, 2024 $ 38,750 2025 38,750 2026 38,750 2027 38,750 2028 38,750 Thereafter 1,058,120 Total future interest and principal payments related to the 2030 Notes $ 1,251,870 Joint Venture Financing Refer to Note 15, “Joint Venture”, in the notes to the consolidated financial statements for additional information on debt issued by the Company’s consolidated subsidiary, Roblox China Holding Corp. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Purchase Obligations —Non-cancellable contractual purchase obligations, primarily related to the Company’s data center hosting providers and software vendors, as of December 31, 2023, are as follows (in thousands): Year ending December 31, 2024 $ 223,201 2025 157,973 2026 78,117 2027 261 2028 209 Thereafter — Total non-cancellable contractual purchase obligations $ 459,761 Letters of Credit —The Company has letters of credit in connection with its operating leases which are not reflected in the Company’s consolidated balance sheets as of December 31, 2023 and 2022. The Company has not drawn down from the letters of credit and had $11.6 million and $9.9 million available in aggregate as of December 31, 2023 and 2022, respectively. Legal Proceedings —The Company is and, from time to time may in the future become, involved in legal proceedings, claims and litigation in the ordinary course of business. As of December 31, 2023 and 2022, the Company accrued for immaterial losses related to litigation matters that the Company believes to be probable and for which an amount of loss can be reasonably estimated. The Company considered the progress of these cases, the opinions and views of its legal counsel and outside advisors, its experience and settlements in similar cases, and other factors in arriving at the conclusion that a potential loss was probable. The Company cannot determine a reasonable estimate of the maximum possible loss or range of loss for all of these matters given that they are at various stages of the litigation process and each case is subject to the inherent uncertainties of litigation. The Company may incur substantial legal fees, which are expensed as incurred, in defending against these legal proceedings. The maximum amount of liability that may ultimately result from any of these matters cannot be predicted with absolute certainty and the ultimate resolution of one or more of these matters could ultimately have a material adverse effect on our operations. Indemnification —In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. To date, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. To date, the Company has not incurred any material costs and has not accrued any liabilities related to such obligations. The Company also has directors’ and officers’ insurance. |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Preferred Stock [Abstract] | |
Convertible Preferred Stock | 10. Convertible Preferred Stock In January 2021, the Company issued 11,888,886 shares of Series H convertible preferred stock to certain institutional accredited investors in a private placement at a purchase price of $45.00 per share for aggregate net proceeds of approximately $534.3 million. There was no underwriter or placement agent used in connection with this sale. The Company previously issued Series A, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series G prior to 2021. In November 2020, pursuant to a conversion notice and an exchange agreement with entities affiliated with the Company’s Founder, President, CEO and Chair of the Company’s Board of Directors, all outstanding convertible preferred stock held by those entities were converted into our Class A common stock and thereafter all 57.3 million outstanding shares of Class A common stock held by those entities were exchanged for 57.3 million shares of Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Immediately prior to the completion of the direct listing of the Company’s Class A common stock (the “Direct Listing”) on the New York Stock Exchange, all outstanding shares of the Company’s convertible preferred stock converted into an aggregate of 349,123,976 shares of Class A common stock. The following table summarizes the convertible preferred stock outstanding immediately prior to the conversion into common stock, and the rights and preferences of the Company’s respective series preceding the Direct Listing in March 2021 (in thousands except per share data): Series Shares Per share Per share Aggregate Carrying Authorized Outstanding A 28,000 16,358 $ 0.02 $ 0.02 $ 327 $ 313 B 45,532 45,532 $ 0.03 $ 0.03 1,070 1,054 C 95,290 95,290 $ 0.03 $ 0.03 2,935 4,150 D 54,860 54,215 $ 0.04 $ 0.04 2,150 2,097 D-1 44,706 44,706 $ 0.09 $ 0.09 4,172 12,998 E 24,340 24,340 $ 1.03 $ 1.03 25,000 24,906 F 33,149 33,149 $ 4.53 $ 4.53 150,000 149,640 G 23,645 23,645 $ 6.34 $ 6.34 150,000 149,669 H 12,222 11,889 $ 45.00 $ 45.00 535,000 534,286 Total 361,744 349,124 $ 870,654 $ 879,113 The following table summarizes the convertible preferred stock outstanding prior to the conversion into common stock, and the rights and preferences of the Company’s respective series as of December 31, 2020 (in thousands except per share data): Series Per share Per share Aggregate Carrying Authorized Outstanding A 28,000 16,358 $ 0.02 $ 0.02 $ 327 $ 313 B 45,532 45,532 $ 0.03 $ 0.03 1,070 1,054 C 95,290 95,290 $ 0.03 $ 0.03 2,935 4,150 D 54,860 54,215 $ 0.04 $ 0.04 2,150 2,097 D-1 44,706 44,706 $ 0.09 $ 0.09 4,172 12,998 E 24,340 24,340 $ 1.03 $ 1.03 25,000 24,906 F 33,149 33,149 $ 4.53 $ 4.53 150,000 149,640 G 23,645 23,645 $ 6.34 $ 6.34 150,000 149,669 Total 349,522 337,235 $ 335,654 $ 344,827 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity (Deficit) | 11. Stockholders’ Equity (Deficit) Preferred Stock —The Company’s amended and restated certificate of incorporation authorizes the issuance of 100.0 million shares of convertible preferred stock with a par value of $0.0001 per share. Common Stock —The Company’s amended and restated certificate of incorporation authorizes the issuance of Class A common stock and Class B common stock. As of December 31, 2023, the Company is authorized to issue 4,935.0 million shares of Class A common stock and 65.0 million shares of Class B common stock. Holders of Class A common stock and Class B common stock are entitled to dividends on a pro rata basis, when, as, and if declared by the Company’s Board of Directors, subject to the rights of the holders of the Company’s convertible preferred stock. Holders of Class A common stock are entitled to one vote per share, and holders of Class B common stock are entitled to 20 votes per share. Each share of our Class B common stock is convertible into one share of our Class A common stock at any time and will convert automatically upon certain transfers and upon the earliest of (i) the date that is specified by the affirmative vote of the holders of two-thirds of the then-outstanding shares of Class B common stock, (ii) the date on which less than 30% of the Class B common stock that was outstanding on March 2, 2021 continues to remain outstanding, (iii) March 10, 2036, (iv) nine months after the death or permanent disability of Mr. David Baszucki, and (v) nine months after the date on which Mr. Baszucki no longer serves as our CEO or as a member of our Board of Directors. Class A common stock and Class B common stock are not redeemable at the option of the holder. During the years ended December 31, 2023 and 2021, 1.3 million and 6.0 million shares of Class B common stock held by entities affiliated with Mr. Baszucki, Founder, President, CEO, and Chair of our Board of Directors were converted to Class A common stock, respectively. Class A and Class B common stock are referred to as common stock throughout the notes to the consolidated financial statements, unless otherwise noted. The Company reserved shares of common stock for future issuance as follows (in thousands): As of December 31, 2023 2022 2021 Stock options outstanding 40,159 51,591 63,267 RSUs outstanding 39,846 30,322 14,684 PSUs 905 415 — CEO Long-Term Performance Award 11,500 11,500 11,500 2020 Equity Incentive Plan 66,114 59,945 52,811 2020 Employee Stock Purchase Plan 16,075 11,093 5,809 Stock warrants outstanding 264 264 324 RSAs outstanding 149 500 468 Total 175,012 165,630 148,863 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | 12. Stock-Based Compensation Expense 2004 Incentive Stock Plan In 2004, the Company approved the 2004 Incentive Stock Plan (the “2004 Plan”), under which the Board of Directors may grant incentive stock options to employees and nonstatutory stock options to employees, members of the Board of Directors and consultants of the Company and its subsidiaries. Under the 2004 Plan, incentive stock options and nonstatutory stock options may be granted at a price not less than fair value and 85% of the fair value, respectively (110% of fair value for incentive stock options granted to holders of 10% or more of voting stock). Fair value is determined by the Board of Directors. Options are exercisable over periods not to exceed 10 years (five years for incentive stock options granted to holders of 10% or more of the voting stock) from the date of grant. The 2004 Plan was terminated on the effective date of the 2017 Amended and Restated Equity Incentive Plan, and accordingly, no shares are available for issuance under the 2004 Plan. The 2004 Plan continues to govern outstanding awards granted thereunder. 2017 Amended and Restated Equity Incentive Plan In 2017, the Company approved the 2017 Amended and Restated Equity Incentive Plan (the “2017 Plan”), under which the Board of Directors may grant incentive stock options to employees and nonstatutory stock options, stock appreciation rights, restricted stock, and RSUs, to employees, members of the Board of Directors and consultants of the Company and its subsidiaries. Under the 2017 Plan, incentive stock options and nonstatutory stock options may be granted at a price not less than fair value (110% of fair value for options issued to holders of 10% or more of voting stock). Stock appreciation rights may be granted at a price not less than fair value. Fair value is determined by the Board of Directors. Options are exercisable over periods not to exceed 10 years (five years for incentive stock options granted to holders of 10% or more of the voting stock) from the date of grant. In connection with the Direct Listing, the 2017 Plan was terminated effective immediately prior to the effectiveness of the 2020 Equity Incentive Plan, and accordingly, no shares are available for issuance under the 2017 Plan. The 2017 Plan continues to govern outstanding awards granted thereunder. 2020 Equity Incentive Plan In 2020, the Company’s Board of Directors adopted, and its stockholders approved, the 2020 Equity Incentive Plan (the “2020 Plan”), which became effective on the business day immediately prior to the effective date of the registration statement for the Company’s Direct Listing. Under the 2020 Plan, the Board of Directors may grant incentive stock options to employees and stock appreciation rights, RSAs, and RSUs, performance units and performance shares to employees, members of the Board of Directors and consultants of the Company and its subsidiaries. Under the 2020 Plan, incentive stock options, nonstatutory stock options, and stock appreciation rights may be granted at a price not less than 100% of the fair market value of the underlying common stock on the date of grant (110% of fair value for incentive stock options issued to holders of 10% or more of voting stock). Options and stock appreciation rights are exercisable over a period not to exceed 10 years (five years for incentive stock options granted to holders of 10% or more of the voting stock) from the date of grant. Under the 2020 Plan, 60.0 million shares of Class A common stock were initially reserved for future issuance. The number of shares of our Class A common stock reserved for future issuance under our 2020 Plan automatically increases on January 1 of each year by the least of (i) 75.0 million shares; (ii) five percent (5%) of the outstanding shares of all classes of the Company’s common stock as of December 31 of the preceding fiscal year; or (iii) a number of shares that may be determined by the Company’s Board of Directors. Stock-based awards under the 2020 Plan that expire or are forfeited, cancelled, or repurchased generally are returned to the pool of shares of Class A common stock available for issuance under the 2020 Plan. In addition, subject to the adjustment provisions of the 2020 Plan, the shares reserved for issuance under the 2020 Plan also includes (i) any shares that, as of the day immediately prior to the effective date of the registration statement, have been reserved but not issued pursuant to any awards granted under the 2017 Plan and are not subject to any awards thereunder and (ii) any shares subject to stock options, RSUs or similar awards granted under our 2017 Plan and 2004 Plan that, after the effective date of the registration statement, expire or otherwise terminate without having been exercised or issued in full, are tendered to or withheld by the Company for payment of an exercise price or for tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest. Employee Stock Purchase Plan In 2020, the Company’s Board of Directors adopted, and its stockholders approved, the 2020 Employee Stock Purchase Plan (the “2020 ESPP”), which became effective in connection with the Direct Listing. The 2020 ESPP authorizes the issuance of shares of common stock pursuant to purchase rights granted to employees. At inception, 6.0 million shares of the Company’s Class A common stock were reserved for future issuance under the 2020 ESPP. The number of shares of our Class A common stock reserved for future issuance under our 2020 ESPP automatically increases on January 1 of each year by the least of (i) 15.0 million shares; (ii) one percent (1%) of the outstanding shares of all classes of the Company’s common stock as of December 31 of the preceding fiscal year; or (iii) a number of shares that may be determined by the Company’s Board of Directors The 2020 ESPP plan is a compensatory plan and includes two components: a component that allows the Company to make offerings intended to qualify under Section 423 of the Internal Revenue Code of 1986 (the “Code”) and a component that allows the Company to make offerings not intended to qualify under Section 423 of the Code. Subject to any limitations contained therein, the 2020 ESPP allows eligible employees to contribute (in the form of payroll deductions or otherwise to the extent permitted by the administrator) an amount established by the administrator from time to time in its discretion to purchase Class A common stock at a discounted price per share. The price at which Class A common stock is purchased under the 2020 ESPP is equal to 85% of the fair market value of a share of the Company’s Class A common stock on the enrollment date or exercise date, whichever is lower. Offering periods are generally 24 months long and begin on the first trading day on or after February 25 and August 25 of each year with each offering period having four purchase periods of approximately six months each. Stock-based compensation expense Stock-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Infrastructure and trust & safety $ 92,147 $ 56,197 $ 35,255 Research and development 607,593 398,899 219,851 General and administrative 131,577 109,607 72,929 Sales and marketing 36,650 24,795 13,907 Total stock-based compensation expense $ 867,967 $ 589,498 $ 341,942 Stock Options The following table summarizes the Company’s stock option activity (in thousands, except per option data and remaining contractual term): Options Outstanding Number of Weighted- Weighted-Average Remaining Aggregate Intrinsic Value Balances as of December 31, 2020 98,502 $ 2.55 7.76 $ 3,838,994 Granted — — Cancelled, forfeited, and expired (1,862) $ 3.95 Exercised (33,373) $ 1.95 Balances as of December 31, 2021 63,267 $ 2.82 6.97 $ 6,348,395 Granted — — Cancelled, forfeited, and expired (2,061) $ 4.06 Exercised (9,615) $ 2.37 Balances as of December 31, 2022 51,591 $ 2.85 6.00 $ 1,321,183 Granted — — Cancelled, forfeited, and expired (762) $ 4.60 Exercised (10,670) $ 2.23 Balances as of December 31, 2023 40,159 $ 2.98 5.16 $ 1,716,171 Exercisable as of December 31, 2023 37,753 $ 2.86 5.08 $ 1,618,078 Vested and expected to vest at December 31, 2023 40,159 $ 2.98 5.16 $ 1,716,171 The aggregate intrinsic value of options exercised for the years ended December 31, 2023, 2022, and 2021 was $373.4 million, $423.3 million, and $2,548.3 million, respectively. Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of the Company’s Class A common stock at the time of exercise. The aggregate grant-date fair value of options that vested during the years ended December 31, 2023, 2022, and 2021 was $51.9 million, $64.1 million, and $79.9 million, respectively. As of December 31, 2023, the Company had $26.9 million of unrecognized stock-based compensation related to unvested options, which is expected to be recognized over a weighted-average remaining requisite service period of 1.0 year. RSUs and RSAs The following table summarizes the Company’s RSU and RSA activity (in thousands, except per share data): Restricted Stock Units Unregistered Restricted Stock Awards Number of Weighted- Number of Weighted- Unvested as of December 31, 2020 3,061 $ 31.55 388 $ 37.75 Granted 13,382 $ 78.92 209 $ 81.67 Vested and released (1,376) $ 38.46 (129) $ 37.75 Cancelled (383) $ 52.78 — — Unvested as of December 31, 2021 14,684 $ 68.03 468 $ 57.37 Granted 25,540 $ 41.09 298 $ 46.00 Vested and released (8,169) $ 57.65 (266) $ 53.67 Cancelled (1,733) $ 57.58 — — Unvested as of December 31, 2022 30,322 $ 48.73 500 $ 52.55 Granted 27,377 $ 37.59 — — Vested and released (14,812) $ 45.97 (351) $ 55.31 Cancelled (3,041) $ 46.79 — — Unvested as of December 31, 2023 39,846 $ 42.25 149 $ 46.00 As of December 31, 2023, the Company had $1,588.0 million of unrecognized stock-based compensation related to RSUs, which is expected to be recognized over the weighted-average remaining requisite service period of 2.2 years. RSUs granted prior to our Direct Listing vest upon the satisfaction of both the service condition and a liquidity event-related performance vesting condition which was satisfied on the Effective Date. In the first quarter of 2021, we recorded cumulative stock-based compensation expense of $21.3 million related to all then-outstanding RSUs for which the service-based vesting condition had been satisfied. Stock-based compensation related to the remaining service-based period after the liquidity event-related performance vesting condition was satisfied is being recorded over the remaining requisite service period using the accelerated attribution method. RSUs granted subsequent to our Direct Listing only have service conditions, which historically have been satisfied generally over four years. For grants made during and subsequent to July 2022, the service condition is satisfied generally over three years. As of December 31, 2023, the Company had $3.2 million of unrecognized stock-based compensation related to RSAs, which is expected to be recognized over the weighted average remaining requisite service period of 1.3 years. CEO Long-Term Performance Award In February 2021, the Leadership Development and Compensation Committee granted the CEO Long-Term Performance Award under the 2017 Plan, which provides him the opportunity to earn a maximum number of 11,500,000 shares of Class A common stock. The CEO Long-Term Performance Award vests upon the satisfaction of a service condition and achievement of certain Class A common stock price targets (referred to as a “Company Stock Price Hurdle”), as described below. The CEO Long-Term Performance Award is eligible to vest based on the Company’s stock price performance over various performance periods, with the first performance period beginning two years after the Effective Date and ending on the seventh anniversary of the Effective Date. The CEO Long-Term Performance Award is divided into seven performance periods that are eligible to vest based on the achievement of various Company Stock Price Hurdles, measured based on an average of our stock price over a consecutive 90-day trading period applicable to the performance period. In addition, Mr. Baszucki must remain employed as our CEO through the date a Company Stock Price Hurdle is achieved in order to earn the RSUs that relate to the applicable Company Stock Price Hurdle. The following table summarizes the various Company Stock Price Hurdles and associated RSUs eligible to vest over each performance period (in thousands, except Company Stock Price Hurdles): Company Stock Price Hurdle Number of RSUs Eligible to Vest Performance Period Commencement Dates as Measured from the Effective Date 1 $ 165.00 750 2 years 2 $ 200.00 750 3 years 3 $ 235.00 2,000 4 years 4 $ 270.00 2,000 5 years 5 $ 305.00 2,000 5 years 6 $ 340.00 2,000 5 years 7 $ 375.00 2,000 5 years If the Company Stock Price Hurdle fails to reach $165.00 prior to the seventh anniversary of the Effective Date, no portion of the CEO Long-Term Performance Award will vest. Further, any RSUs associated with a Company Stock Price Hurdle not achieved by the seventh anniversary of the Effective Date will terminate and be cancelled for no additional consideration to Mr. Baszucki. The Company Stock Price Hurdles and number of RSUs eligible to vest will be adjusted to reflect any stock splits, stock dividends, combinations, reorganizations, reclassifications, or similar events under the 2017 Plan. Each vested RSU under the CEO Long-Term Performance Award will be settled in a share of our Class A common stock on the next company quarterly settlement date occurring on or after the date on which the RSU vests, regardless of whether Mr. Baszucki remains the CEO as of such date. Company quarterly settlement dates for this purpose are February 20, May 20, August 20, and November 20. The Company estimated the grant date fair value of the CEO Long-Term Performance Award using a model based on multiple stock price outcomes developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the Company Stock Price Hurdles may not be satisfied. A Monte Carlo simulation model requires use of various assumptions, including the underlying stock price, volatility, and the risk-free interest rate as of the valuation date, corresponding to the length of time remaining in the performance period, and expected dividend yield. The weighted-average grant date fair value of the CEO Long-Term Performance Award was estimated to be $20.19 per share, and the Company estimates that as of the grant date, it will recognize total stock-based compensation expense of approximately $232.2 million over the derived service period of each of the seven separate tranches which is between 3.45 – 5.38 years, using the accelerated attribution method. If the Company Stock Price Hurdles are met sooner than the derived service period, the stock-based compensation expense will be adjusted to reflect the cumulative expense associated with the vested award. The stock-based compensation expense will be recognized over the requisite service period if Mr. Baszucki provides service as the Company’s CEO, regardless of whether the Company Stock Price Hurdles are achieved. The Company recorded $48.9 million, $48.9 million, and $42.0 million of stock-based compensation expense related to the CEO Long-Term Performance Award during the years ended December 31, 2023, 2022, and 2021, respectively, within general and administrative expenses. As of December 31, 2023, unrecognized stock-based compensation expense related to the CEO Long-Term Performance Award was $92.4 million which will be recognized over the remaining derived service period of each respective tranche. PSUs 2023 PSU Grants During the second quarter of 2023, the Leadership Development and Compensation Committee granted performance-based restricted stock unit awards (the “2023 PSU Grants”), to certain members of management. The number of shares that can be earned will range from 0% to 200% of the target number of shares, based on the Company’s performance against two independent performance measures relative to pre-established thresholds during a two-year performance period ending on December 31, 2024. The two independent performance measures include the Company’s cumulative (i) bookings and (ii) Covenant Adjusted EBITDA during the performance period, as those performance measures are defined in the respective grant agreements with each employee. Further, the awards are subject to continuous employment, with the first vesting to occur in the first quarter of 2025 (in which 50% of any awards earned will vest) and the second vesting to occur in the second quarter of 2026 (in which the remaining 50% of any awards earned will vest). As of December 31, 2023, the number of shares under the 2023 PSU Grants that can be earned at target performance totaled 277,361, with 80% of the target number of shares allocated to the cumulative bookings performance measure and 20% of the target number of shares allocated to the Covenant Adjusted EBITDA performance measure. The Company recognizes stock-based compensation expense for the 2023 PSU Grants based upon the per-share grant date fair value of $45.70 on an accelerated attribution method over the requisite service period of each separately vesting tranche. At each reporting period, the amount of stock-based compensation is determined based on the probability of achievement against the pre-established performance measures and if necessary, a cumulative catch-up adjustment is recorded to reflect any revised estimates regarding the probability of achievement. The Company recorded $6.4 million of stock-based compensation expense related to the 2023 PSU Grants during the year ended December 31, 2023. Based on the expected probability of achievement against the pre-established performance measures as of December 31, 2023, unrecognized stock-based compensation expense related to the 2023 PSU Grants was $12.8 million as of December 31, 2023, which is expected to be recognized over the remaining derived service period of each respective tranche. 2022 PSU Grants During the second quarter of 2022, the Leadership Development and Compensation Committee granted performance-based restricted stock unit awards (the “2022 PSU Grants”), to certain members of management. On the grant date, the target number of 2022 PSU Grants was 207,284. The number of shares that can be earned will range from 0% to 200% of the target number of shares, based on the Company’s stock price performance and achievement of certain stock price hurdles during the last quarter of the second year through the end of the third year of a three-year performance period (the “2022 PSU Grant Stock Price Hurdles”) and subject to continuous employment through such date. The Company estimated the grant date fair value of the 2022 PSU Grants using a model based on multiple stock price outcomes developed through the use of a Monte Carlo simulation which incorporates into the valuation the possibility that the 2022 PSU Grant Stock Price Hurdles may not be satisfied. The grant date fair value of the 2022 PSU Grants was estimated to be $43.13 per share, and the Company estimates that it will recognize total stock-based compensation expense of approximately $7.5 million using the accelerated attribution method over the derived service period of each tranche which is equal to five measurement periods commencing with the last quarter of the second year and ending with the last quarter of the third year. If the 2022 PSU Grant Stock Price Hurdles are met sooner than the derived service period, the stock-based compensation expense will be adjusted to reflect the cumulative expense associated with the vested award. Stock-based compensation expense will be recognized over the requisite service period if the members of management continue to provide service to the Company, regardless of whether the 2022 PSU Grant Stock Price Hurdles are achieved. The Company recorded $3.2 million and $3.0 million of stock-based compensation expense related to the 2022 PSU Grants during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, unrecognized stock-based compensation expense related to the 2022 PSU grants was $1.3 million which will be recognized over the remaining derived service period of each of five tranches. Employee Stock Purchase Plan The following table presents the assumptions used in estimating the grant date fair value of purchase rights granted under the 2020 ESPP for the offerings made in the respective years including reset and rollover: Year Ended December 31, 2023 2022 2021 Risk-free interest rate 4.78% - 5.61% 0.71% - 3.35% 0.06% - 0.25% Expected volatility 47.92% - 75.99% 54.16% - 81.51% 46.97% - 56.91% Dividend yield —% —% —% Expected terms (in years) 0.49 - 2.00 0.50 - 2.01 0.44 - 2.00 The Company recorded $32.0 million, $25.7 million, and $9.9 million of stock-based compensation expense related to the 2020 ESPP during the years ended December 31, 2023, 2022, and 2021, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) The following table shows a summary of changes in accumulated other comprehensive income/(loss) by component for the periods presented (in thousands): Foreign Currency Translation Unrealized Gains/(Losses) on Available-For-Sale Debt Securities Total Balance as of December 31, 2021 $ 62 $ — $ 62 Other comprehensive income/(loss) before reclassifications 609 — 609 Amounts reclassified from accumulated other comprehensive income/(loss) — — — Change in accumulated other comprehensive income/(loss), net of tax 609 — 609 Balance as of December 31, 2022 $ 671 $ — $ 671 Other comprehensive income/(loss) before reclassifications 771 (1,845) (1,074) Amounts reclassified from accumulated other comprehensive income/(loss) — 1,939 1,939 Change in accumulated other comprehensive income/(loss), net of tax 771 94 865 Balance as of December 31, 2023 $ 1,442 $ 94 $ 1,536 |
Employee and Director Benefits
Employee and Director Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee and Director Benefits | 14. Employee and Director Benefits Defined Contribution Plan The Company sponsors a 401(k) defined contribution retirement plan for eligible employees. For the year ended December 31, 2023, the Company matched 100% of all employee contributions, up to 50% of the Internal Revenue Service (“IRS”) deferral limit. For the years ended December 31, 2022 and 2021, the Company matched 100% of the first 3% of employee contributions and 50% of the next 2% for each employee, subject to the maximum total contribution mandated by the IRS. The Company made matching contributions in the amount of $24.9 million, $14.6 million, and $9.3 million for the years ended December 31, 2023, 2022, and 2021, respectively. Deferred Compensation Plan The Company established the Roblox Corporation Nonqualified Deferred compensation Plan (as amended, the “NQDC Plan”) for its non-employee directors and a select group of management employees. Eligible participants may voluntarily elect to participate in the NQDC Plan. Unless otherwise determined by the committee that administers the NQDC Plan, eligible employee participants may elect annually to defer up to 90% of their base salary, up to 100% of their cash bonus compensation (if any), and up to 65% of any RSUs or PSUs granted under the Company’s 2020 Plan (if any), and eligible non-employee director participants may elect annually to defer up to 100% of their cash director fees and any RSUs granted under the Company’s 2020 Plan. Obligations of the Company under the NQDC Plan represent at all times unsecured general obligations of the Company to pay deferred compensation in the future in accordance with the terms of the NQDC Plan. Cash amounts deferred under the plan may only later be settled in cash and are credited or charged with the performance of investment options offered under the NQDC Plan as elected by the participants. The amount credited or charged to each participant’s cash deferrals are based on the performance of a hypothetical portfolio of investments which are tracked by an administrator, with such credits or charges included as a component of operating expenses in the Company’s consolidated statements of operations. The cash obligations due to participants are presented as other long-term liabilities on the Company’s consolidated balance sheet. The Company generally funds the cash obligations associated with the NQDC Plan by purchasing investments that match the hypothetical investment choices made by the plan participants. The investments (and any uninvested cash) are held in a rabbi trust in order to receive certain tax benefits. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes. The investments held in the rabbi trust are presented as short-term investments and any uninvested cash is presented as cash and cash equivalents on the Company’s consolidated balance sheet. As it relates to any deferred RSUs and PSUs, the Company ensures enough shares of its Class A common stock are reserved to settle all obligations under the NQDC Plan. These obligations are settled on the date(s) elected by the participant. The accounting for the RSUs and PSUs deferred under the NQDC Plan is consistent with the accounting for non-deferred RSUs and PSUs. |
Joint Venture
Joint Venture | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | 15. Joint Venture Background In February 2019, the Company entered into a joint venture agreement with Songhua River Investment Limited (“Songhua”), an affiliate of Tencent Holdings Ltd. (“Tencent Holdings”), to create Roblox China Holding Corp. (in which Roblox holds a 51% ownership interest as it relates to the voting shares). Songhua contributed $50.0 million in capital in exchange for a 49% ownership interest in Roblox China Holding Corp. The business of the joint venture (either directly or indirectly through the joint venture’s wholly owned subsidiaries) is to engage in the (i) development, localization, and licensing of the Roblox application to Shenzhen Tencent Computer Systems Co., Ltd. for operation and publication as a game in China, and (ii) development, localization, and licensing to creators of a Chinese version of the Roblox Studio and to oversee relations with local Chinese developers. The joint venture is consolidated into the Company’s consolidated financial statements as the Company maintains a controlling financial interest through voting rights, while the minority member of the joint venture does not have substantive participating rights or veto rights. The Company classifies the 49% ownership interest held by Songhua as a noncontrolling interest on its consolidated balance sheet. Joint Venture Financing On May 10, 2023, Roblox China Holding Corp. (the “Borrower”) issued $30.0 million aggregate principal debt which matures on May 10, 2026 (the “2026 Notes”), unless earlier prepaid by the Borrower or converted by the holders into the Borrower’s voting shares. Further, the Borrower, at its sole election, may extend the maturity date by two years. The 2026 Notes were funded by the Company and Songhua (the “Lenders”) in the amount of $15.3 million and $14.7 million, respectively. The 2026 Notes bear interest at a rate of 6.0% per annum, with accrued interest payable on the final maturity date. At any point, the Lenders may voluntarily convert the 2026 Notes into voting shares of the Borrower, provided that immediately after such conversion, the Lenders continue to own the same percentage of voting shares in the Borrower as they did immediately prior to the conversion. The conversion ratio will be determined at the time of such conversion (if any), and will be determined by dividing the then fair value of the Borrower’s voting shares (as mutually agreed to by the Lenders and Borrower) into the sum of the unpaid principal and accrued interest. The portion of the 2026 Notes outstanding to Songhua is reflected in the Company’s consolidated financial statements as long-term debt, net, at its principal amount, while the portion outstanding to the Company – including any related interest expense – is eliminated upon consolidation. Interest expense related to the 2026 Notes was $0.5 million for the year ended December 31, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ (1,151,493) $ (916,592) $ (472,141) Foreign (6,990) (13,997) (31,659) $ (1,158,483) $ (930,589) $ (503,800) The components of the provision for/(benefit from) income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current provision: Federal $ (144) $ 144 $ — State (561) 2,405 678 Foreign 1,255 1,582 — Total current provision 550 4,131 678 Deferred provision: Federal — (474) (878) State — (105) (120) Foreign (96) — — Total deferred provision (96) (579) (998) Provision for/(benefit from) income taxes $ 454 $ 3,552 $ (320) The provision for/(benefit from) income taxes differs from the amount estimated by applying the statutory income (loss) before taxes as follows: Year Ended December 31, 2023 2022 2021 Federal tax at statutory rate 21 % 21 % 21 % State tax at statutory rate, net of federal benefit 2 2 2 Research and development credits 6 2 10 Change in valuation allowance (27) (21) (117) Stock-based compensation (3) (4) 84 Other 1 0 0 Provision for/(benefit from) income taxes 0 % 0 % 0 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the components of the Company’s deferred tax assets (liabilities) for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Deferred tax assets: Accrued expenses $ 14,231 $ 13,593 $ 11,466 Deferred revenue 246,144 198,130 107,221 Net operating loss carryforwards 599,804 490,309 505,668 Tax credit carryforwards 155,246 85,527 65,855 Stock-based compensation 29,083 28,238 35,368 Operating lease liabilities 176,007 130,688 56,897 Capitalized research and development 366,898 178,488 — Interest — — 1,556 Other 2,914 1,988 1,369 Total gross deferred tax asset 1,590,327 1,126,961 785,400 Less: valuation allowance (1,222,211) (907,226) (711,297) Net deferred tax assets 368,116 219,735 74,103 Deferred tax liabilities: Fixed assets (28,645) (92,009) (13,889) Intangible assets (2,735) (6,694) (9,060) Operating lease right-of-use assets (154,334) (121,032) (51,154) Deferred cost of revenue (182,495) — — Total deferred tax liabilities (368,209) (219,735) (74,103) Net deferred tax liabilities $ (93) $ — $ — We have not provided U.S. income taxes or foreign withholding taxes on the undistributed earnings of our profitable foreign subsidiaries because we intend to permanently reinvest such earnings in foreign operations. As of December 31, 2023 and 2022, the cumulative amount of earnings upon which income taxes have not been provided is not material. The Company accounts for deferred taxes under ASC 740, Income Taxes, which requires a reduction of the carrying amounts of deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the ASC 740 more-likely-than-not realization threshold criterion. This assessment considers matters such as future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. The evaluation of the recoverability of the deferred tax assets requires that we weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax assets will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. Due to our lack of U.S. earnings history, the net U.S. deferred tax assets have been fully offset by a valuation allowance. There are immaterial deferred tax assets and deferred tax liabilities in our foreign jurisdictions without valuation allowance. The Company’s valuation allowance increased by $315.0 million, $195.9 million, and $589.0 million, in the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023, we had federal net operating loss carryforwards of $2,382.3 million, which do not expire, federal net operating loss carryforwards of $52.2 million, which begin to expire in 2035, state net operating loss carryforwards of $1,261.4 million, which begin to expire in 2024, and foreign net operating loss carryforwards of $66.8 million, which begin to expire in 2024. As of December 31, 2023, we had U.S. federal and California research and development tax credits of approximately $201.3 million and $139.3 million, respectively. The federal research and development credits begin to expire in 2030, while California credits do not expire. Under Internal Revenue Code Section 382 (“Section 382”), an ownership change generally occurs if one or more stockholders or groups of stockholders who own at least 5% of our stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. The Company did experience one or more ownership changes in financial periods ending on or before December 31, 2023. In this regard, the Company has determined that based on the timing of the ownership change and the corresponding Section 382 limitations, none of its net operating losses or other tax attributes appear to expire subject to such limitation. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): As of December 31, 2023 2022 2021 Unrecognized tax benefits at beginning of year $ 96,372 $ 72,919 $ 19,386 Increases related to current year tax positions 59,917 25,458 53,440 Increases related to prior year tax positions 16,100 865 93 Decreases related to prior year tax positions — (2,870) — Unrecognized tax benefits at end of year $ 172,389 $ 96,372 $ 72,919 We classify uncertain tax positions as non-current liabilities unless expected to be paid within one year or otherwise directly related to an existing deferred tax asset, in which case the uncertain tax position is recorded as an offset to the deferred tax asset on the consolidated balance sheet. As of December 31, 2023, we had gross unrecognized tax benefits of approximately $172.4 million, of which $1.4 million would impact income tax expense if recognized. As of December 31, 2022, we had gross unrecognized tax benefits of approximately $96.4 million. The Company does not anticipate any significant change within twelve months of this reporting date. Our policy is to recognize interest and penalties related to income taxes as components of interest expense and other expense, respectively. The Company accrued interest and penalties of $0.4 million and $0.2 million in the years ended December 31, 2023 and December 31, 2022, respectively. The Company did not accrue interest and penalties related to unrecognized tax benefits as of December 31, 2021. The Company is subject to taxation in the United States, various states, and foreign jurisdictions. All tax years for U.S. federal and California tax returns currently remain open for examination by the tax authorities. As of December 31, 2023, we are no longer subject to foreign examinations by tax authorities for years before 2019. As of December 31, 2023, the Company is under examination in a foreign jurisdiction and is not under examination by the Internal Revenue Service or any state tax jurisdictions. On January 1, 2022, a provision of the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures and instead requires taxpayers to amortize such costs over five years. This change did not have a significant impact to the Company’s provision for income tax for the years ended December 31, 2023 and 2022 as the Company has net operating loss carryforwards to offset the impact of the change and maintains a full valuation allowance against its deferred tax assets. Further, the Company does not anticipate this change to have a significant impact to the provision for income tax for the year ended December 31, 2024 and will continue to evaluate the impact on its business in future periods. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Common Share | 17. Basic and Diluted Net Loss Per Common Share The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Year ended December 31, 2023 2022 2021 Basic and diluted net loss per share Numerator Consolidated net loss $ (1,158,937) $ (934,141) $ (503,480) Less: net loss attributable to noncontrolling interests (6,991) (9,775) (11,829) Net loss attributable to common stockholders $ (1,151,946) $ (924,366) $ (491,651) Denominator Weighted-average common shares used in computing net loss per share attributable to common stockholders, based and diluted 616,445 595,559 505,858 Net loss per share attributable to common stockholders, basic and diluted $ (1.87) $ (1.55) $ (0.97) The potential shares of common stock that were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive are as follows (in thousands): Year ended December 31, 2023 2022 2021 Stock options outstanding 40,159 51,591 63,267 RSUs outstanding 39,846 30,322 14,684 2020 ESPP 3,347 2,311 523 2023 PSUs Grants based on performance target achievement at period-end (1) 9 — — Stock warrants outstanding 264 264 324 RSAs outstanding 149 500 468 Total 83,774 84,988 79,266 (1) Represents the hypothetical number of shares that would have been earned under the Company’s 2023 PSU Grants had the performance period ended on the balance sheet date. The CEO Long-Term Performance Award and 2022 PSU Grants were excluded from the above table because the respective stock price targets had not been met as of the periods presented. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Geographic Information | 18. Geographic Information Long-lived assets, comprising property and equipment, net, by geographic area were as follows (in thousands): As of December 31, 2023 2022 United States $ 646,572 $ 553,127 Rest of world 48,788 39,219 Total $ 695,360 $ 592,346 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events On February 7, 2024, the Company executed a lease assignment as sub-lessee pursuant to which the Company will sublease approximately 133,137 square feet of office space in San Mateo, California for a lease term of approximately five years (the “2024 Sub-Lessee Agreement”). Concurrent with the execution of the 2024 Sub-Lessee Agreement, the Company executed a sublease as sub-lessor pursuant to which it will sublease approximately 61,773 square feet of its San Mateo, California corporate headquarters to the sub-lessee for a lease term of approximately 3 years (the “2024 Sub-Lessor Agreement”). Both the 2024 Sub-Lessee Agreement and 2024 Sub-Lessor Agreement are contingent upon each respective landlord’s consent, amongst other contingencies. The initial annual base rent under the 2024 Sub-Lessee Agreement ranges from approximately $8.0 million to $9.0 million over the lease term and the Company expects to take possession in the first half of 2024. The initial annual base rent due to the Company under the 2024 Sub-Lessor Agreement ranges from approximately $4.0 million to $5.0 million over the lease term and the Company expects to provide possession in the first half of 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net loss attributable to common stockholders | $ (1,151,946) | $ (924,366) | $ (491,651) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
David Baszucki [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 29, 2023, David Baszucki, our Chief Executive Officer and member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement as an individual, as trustee of The Baszucki Family Foundation, and as a representative of the Bessemer Trust Company of Delaware who serves as trustee for the 2020 Jan Baszucki Gift Trust, dated April 3, 2020 and the 2020 David Baszucki Gift Trust, dated April 3, 2020. The trading arrangement provides for the sale from time to time of an aggregate of up to 10,581,062 shares of Class A Common Stock and the gift of an aggregate of up to 2,364,016 shares of Class A Common Stock to a charitable organization. The trading arrangement expires on February 24, 2025, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). | |
Name | David Baszucki | |
Title | Chief Executive Officer and member of our Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 29, 2023 | |
Arrangement Duration | 453 days | |
Anthony Lee [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 20, 2023, Anthony Lee, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement, as a trustee of the Fallen Leaf Revocable Trust. The trading plan provides for the sale from time to time of an aggregate of up to 500,000 shares of Class A Common Stock. The trading arrangement expires on March 31, 2025, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). | |
Name | Anthony Lee | |
Title | member of our Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 20, 2023 | |
Arrangement Duration | 497 days | |
Aggregate Available | 500,000 | 500,000 |
Greg Baszucki [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 28, 2023, Greg Baszucki, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement as trustee of the Greg & Christina Baszucki Living Trust, dated August 18, 2016. The trading plan arrangement provides for the sale from time to time of an aggregate of up to 468,000 shares of Class A Common Stock. The trading arrangement expires on March 7, 2025, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). | |
Name | Greg Baszucki | |
Title | member of our Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 28, 2023 | |
Arrangement Duration | 465 days | |
Aggregate Available | 468,000 | 468,000 |
Michael Guthrie [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 18, 2023, Michael Guthrie, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 500,000 shares of Class A Common Stock. The trading arrangement expires on December 13, 2024, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). | |
Name | Michael Guthrie | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 18, 2023 | |
Arrangement Duration | 391 days | |
Aggregate Available | 500,000 | 500,000 |
David Baszucki Trading Arrangement, Class A Common Stock [Member] | David Baszucki [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 10,581,062 | 10,581,062 |
David Baszucki Trading Arrangement, Class A Common Stock Gift To Charitable Organization [Member] | David Baszucki [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 2,364,016 | 2,364,016 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year —The Company’s fiscal year ends on December 31. For example, references to fiscal 2023, 2022, and 2021 refer to the fiscal year ending December 31, 2023, December 31, 2022, and December 31, 2021, respectively. |
Basis of Presentation | Basis of Presentation —The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). |
Principles of Consolidation | Principles of Consolidation —The consolidated financial statements include the accounts of the Company and subsidiaries over which the Company has control. All intercompany transactions and balances have been eliminated. The consolidated financial statements include 100% of the accounts of wholly owned and majority owned subsidiaries, and the ownership interest of minority investors is recorded as noncontrolling interest. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, the estimated period of time the virtual items are available to the user, which is estimated as the average lifetime of a paying user, and the estimated amount of consumable and durable virtual items purchased for which the Company lacks specific information that is used for revenue recognition, the estimated amount of expected breakage related to prepaid card sales, useful lives of property and equipment and intangible assets, fair value of assets and liabilities acquired through acquisitions, accrued liabilities (including accrued developer exchange fees), contingent liabilities, valuation of deferred tax assets and liabilities, stock-based compensation expense, the discount rate used in measuring our operati ng lease liabilities, the carrying value of operating lease right-of-use assets, evaluation of recoverability of goodwill, intangible assets and long-lived assets, and as necessary, estimates of fair value to measure impairment losses. Management believes that the estimates, and judgments upon which they rely, are reasonable based upon information available to them at the time that these estimates and judgments are made. Actual results could differ from those estimates and any such differences may be material to the consolidated financial statements. To the extent that there are material differences between these estimates and actual results, the Company’s consolidated financial statements will be affected. |
Foreign Currency Transactions | Foreign Currency Transactions — The functional currency of the Company’s international subsidiaries is the U.S. dollar, with the exception of a Chinese subsidiary wholly owned by Roblox China Holding Corp., as discussed in Note 15, “Joint Venture” to the notes to these consolidated financial statements. We translate the financial statements of our non-U.S. dollar functional subsidiary to U.S. dollars using the period-end exchange rate for assets and liabilities and the average exchange rate for the period for revenues and expenses. The effects of foreign currency translation are included in stockholders’ equity/(deficit) and periodic movements are summarized as a line item in the consolidated statements of comprehensive income. We reflect foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency, which includes gains and losses from the remeasurement of assets and liabilities, as a component of other income/(expense), net. |
Segments | Segments — The Company operates as a single operating and reportable segment, which is at the consolidated entity level. The chief operating decision maker of the Company is its chief executive officer (“CEO”), who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. |
Revenue Recognition | Revenue Recognition Revenue Recognition Policy In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when control of the service is transferred to the customer. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for these services. To achieve the core principle of this standard, the Company determines revenue recognition by: • identifying the contract, or contracts, with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, the Company satisfies performance obligations by transferring the promised services. The Company derives substantially all of its revenue from the sale of virtual items on the Roblox Platform. Roblox Platform The Company operates the Roblox Platform as live services that allow users to play and socialize with others for free. Within the experience, however, users can purchase virtual currency (“Robux”) to ultimately obtain virtual items to enhance their social experience. Proceeds from the sale of Robux are initially recorded in deferred revenue and recognized as revenue as a user purchases and uses virtual items. The Company’s identified performance obligation is to provide users with the ability to acquire, use, and hold virtual items on the Roblox Platform over the estimated period of time the virtual items are available to the user or until the virtual items are consumed. Users can purchase Robux as one-time purchases or through monthly subscriptions via payment processors or through prepaid cards. Payments from users are non-refundable and relate to non-cancellable contracts for a fixed price that specify Company’s obligations. Revenue is recorded net of taxes assessed by government authorities that are both imposed on and concurrent with specific revenue transactions between the Company and its users, and estimated chargebacks and refunds. The satisfaction of the Company’s performance obligation is dependent on the nature of the virtual item purchased and as a result, the Company categorizes its virtual items as either consumable or durable. • Consumable virtual items represent items that can be consumed by a specific user action. Common characteristics of consumable virtual items may include items that are no longer displayed on the user’s inventory after a short period of time or do not provide the user any continuing benefit following consumption. For the sale of consumable virtual items, the Company recognizes revenue as the items are consumed. • Durable virtual items represent items which result in a persistent change to a users’ character or item set (e.g., virtual hat, pet, or house). These items are generally available to the customer to hold, use, or display for as long as they are on the Roblox Platform. The Company recognizes revenue from the sale of durable virtual items ratably over the estimated period of time the items are available to the user which is estimated as the average lifetime of a paying user. To separately account for consumable and durable virtual items, the Company specifically identifies each purchase for the majority of virtual items purchased on the Roblox Platform. For the remaining population, the Company estimates the amount of consumable and durable virtual items purchased based on data from specifically identified purchases and the expected behavior of the users within similar experiences. The estimation of consumable and durable virtual items purchased for the population of purchases not specifically identified requires management’s judgment as the Company evaluates and estimates the expected behavior of users in the population using information from known purchases in similar experiences. The average lifetime of a paying user estimate is calculated based on historical monthly retention data for each user cohort to project future participation on the Roblox Platform. Determining the estimated average lifetime of a paying user requires management’s judgment as the Company analyzes the most recent trends in player cohort activity and other qualitative factors, including paying user behavior (e.g. impacts due to macroeconomic factors such as COVID-19), existing and new competition from a variety of entertainment resources for our users, the availability of the Roblox Platform across markets and user demographics, and other factors. The Company also considers results from prior analyses in determining the estimated average lifetime of a paying user. The Company believes this estimate is the best representation of the average life of the durable virtual items. The estimated paying user life was 28 months, 28 months, and 23 months as of December 31, 2023, 2022, and 2021, respectively. As part of the process above, in the first quarter of 2022, the Company updated its estimated paying user life from 23 months to 25 months, which was subsequently updated again to 28 months in the third quarter of 2022, where it stayed for the entire year ended December 31, 2023. Based on the carrying amount of deferred revenue and deferred cost of revenue as of December 31, 2021, these changes in estimates resulted in a decrease in revenue of $344.9 million and a decrease in cost of revenue of $79.3 million during the year ended December 31, 2022. The Company offers prepaid cards through online and physical retailers, as well as on the Company website. The Company estimates expected breakage by taking into consideration historical patterns of redemption and escheatment laws as applicable. Principal Agent Considerations The Company evaluates the sales of Robux via third-party payment processors to determine whether its revenues should be reported gross or net of fees either retained by the payment processor or paid to the developers and creators (“Developer Exchange Fees”). The Company is the principal in the transaction with the end user as a result of controlling, hosting, and integrating the delivery of the virtual items to the end user. The Company records revenue gross as a principal and records fees paid to payment processors as a component of cost of revenue and fees paid to developers and creators as a component of developer exchange fees expense. Other Revenue Other revenue primarily consists of revenue from advertising, licenses, and royalties. The Company recognizes revenue based on the performance obligations of the underlying agreements, in an amount that reflects the consideration that the Company expects to be entitled to. |
Cost of Revenue | Cost of Revenue —Cost of revenue primarily consists of payment processing fees charged by various distribution channels, as well as costs associated with the printing of prepaid cards. |
Deferred Cost of Revenue | Deferred Cost of Revenue —The Company defers contract costs that are direct and incremental to obtaining user contracts (i.e., sales of Robux). Deferred cost of revenue consists of payment processing fees charged by third-party payment processors. Payment processing fees are amortized over the estimated period of time the virtual items are available to the user on the Roblox Platform (based on the nature of the virtual item as either consumable or durable) in proportion to the revenue recognized. The Company classifies deferred cost of revenue as short-term or long-term based on when the Company expects to recognize the expense. Deferred cost of revenue is periodically reviewed for impairment. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, long-term investments and accounts receivables. Cash is deposited with high quality financial institutions and may, at times, exceed federally insured limits. Management believes that the financial institutions that hold the Company’s cash deposits are financially creditworthy and, accordingly, minimal credit risk exists with respect to those balances. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal interest rate risk. As it relates to cash equivalents, short-term investments, and long-term investments, the Company’s investment policy limits the amount of credit exposure in its portfolio by imposing credit rating minimums and limiting purchases by security type and sector. The Company uses various distribution channels to collect and remit payments from users. As of December 31, 2023 and 2022, one distribution channel accounted for 30% and 37% of our accounts receivable, respectively, while a second distribution channel accounted for 26% and 19% of our accounts receivable, respectively. For the years ended December 31, 2023, 2022, and 2021, one distribution channel processed 30%, 32%, and 35% of our overall revenue transactions, respectively, and a second distribution channel processed 17%, 18%, and 19% of our overall revenue transactions, respectively. |
Fair Value Hierarchy | Fair Value Hierarchy —Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity, associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 —Inputs that are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash —Cash and cash equivalents primarily consisted of cash in hand and money market instruments with maturities of 90 days or less from the date of purchase. |
Short-Term and Long-Term Investments | Short-Term and Long-Term Investments —Realized gains and losses for all investments are determined using the specific-identification method and are reflected as a component of other income/(expense), net in the consolidated statements of operations. Debt Securities Short-term and long-term investments include corporate debt securities, commercial paper, U.S. Treasury securities, U.S. agency securities, foreign government securities, and certificates of deposits. Based on our intentions, all debt investments are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded as a separate component of other comprehensive income, net of tax. The Company determines the appropriate classification of its investments as short-term or long-term at the time of purchase and reevaluates such determination at each reporting period based on their respective maturity dates and the Company’s reasonable expectation with regard to those investments (e.g. expectations of future sales or redemptions). For debt securities in an unrealized loss position, we first consider whether we intend to or it is more likely than not that we will be required to sell the individual security prior to recovery of its amortized cost basis and if so, we adjust the carrying value of security down to its fair value, with the amount of the write-down recorded as a realized loss within other income/(expense), net. Otherwise, we determine whether a decline in fair value is attributable to a partial or full credit loss by reviewing factors such as the extent to which the fair value is less than the amortized cost basis, changes in interest rates since the purchase of the security, the financial condition of the issuer, including changes in credit ratings, the remaining payment terms of the security, as well as any adverse conditions specifically related to the security, the issuer’s industry or its geographic area. If a credit loss exists, we adjust the carrying value by recording expense within other income/(expense), net equal to the amount of the credit loss, with such amount limited to the amount of the unrealized loss. Subsequent recoveries of fair value originally attributed to a credit loss are subsequently recognized as income within other income/(expense), net. Finally, any unrealized loss not deemed to be attributable to a credit loss is recognized as component of other comprehensive income/(loss), net of tax. For purposes of identifying and measuring credit losses, the Company excludes any related accrued interest from both the fair value and amortized cost basis of the investment. Accrued interest receivable, net of the allowance for credit losses (if any), is recorded as a component of prepaid expenses and other current assets in our consolidated financial statements. Equity Securities with Readily Determinable Fair Value Short-term investments include mutual fund investments related to the Company’s nonqualified deferred compensation plan, which are held in a rabbi trust. The Company classifies these investments as trading securities as the rabbi trust actively manages the asset allocation to match the participants’ hypothetical fund allocations. The Company considers investments held in the rabbi trust to be restricted given their withdrawal and general use is legally restricted. All equity inve stments are reported at fair value, with unrealized gains and losses recorded within other income/(expense), net in our consolidated statement of operations. |
Accounts Receivable and Related Allowance | Accounts Receivable and Related Allowances — Accounts receivable represent amounts due to us based on contractual obligations with our customers. Payments made by the Company’s users are collected by payment processors and remitted to the Company generally within 30 days of invoicing. The Company maintains allowances for potential credit losses when deemed necessary. The Company has not experienced any material credit losses to date. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, it records a specific allowance as a reduction to the accounts receivable balance to reduce it to its net realizable value. In addition, the Company holds a reserve for chargebacks and refunds based on historical data and current trends and projections. Specific allowances, chargeback, and refund reserves have not been material for any of the periods presented. |
Property and Equipment—Net | Property and Equipment—Net — |
Goodwill and Intangible Assets | Goodwill and Intangible Assets —Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. Goodwill is not amortized but rather tested for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation by comparing the estimated fair value of our single reporting unit, determined using the Company’s market capitalization as of the testing date, to its carrying value. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during any of the periods presented. Intangible assets with finite lives are carried at cost, less accumulated amortization. Intangible assets with finite lives are generally amortized on a straight-line basis over the estimated useful life of the respective asset, generally up to 5 years, or in the case of acquired patents, up to 10 years. |
Business Combinations and Asset Acquisitions | Business Combinations and Asset Acquisitions —To determine whether a transaction is accounted for as an asset acquisition or business combination, the Company applies a screen test to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen test does not result in substantially all of the fair value concentrated in a single identifiable asset or group of similar identifiable assets, the Company performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test indicates that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination. For business combinations, the purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their respective estimated fair values. The excess of the fair value of purchase consideration over their fair values is recorded as goodwill. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates . As a result, during the measurement period, which may be up to one year following the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded within the accompanying consolidated statements of operations. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired. |
Software Development Costs and Research and Development Cost | Software Development Costs —The Company incurs costs related to developing the Roblox Platform and related support systems. The Company capitalizes development costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Development costs meeting the Company’s capitalization criteria were not material during the periods presented. Research and Development Cost |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets— The Company periodically evaluates the carrying value of long-lived assets to be held and used when indicators of impairment exist. The carrying value of a long-lived asset to be held and used is considered impaired when the estimated separately identifiable undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying value of the asset. In that event, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company’s business strategy and internal forecasts. |
Developer Exchange Fees Expense | Developer Exchange Fees Expense —The Company has established an incentive program for developers and creators to build and operate virtual experiences within the Roblox environment. Developers and creators can earn Robux through the sale of access to their experiences and enhancements in their experiences, the sale of content and tools between developers through the Creator Store, and the sale of items to users through the Marketplace. Developers can also earn Robux through our engagement-based reward program that rewards developers based on the share of time that Roblox Premium subscribers engage in their experience. Under certain conditions, and in compliance with applicable law, these developers and creators are eligible to receive a cash payout based on the amount of accumulated earned Robux through our Developer Exchange Program. In order to be qualified for our Developer Exchange Program and eligible to exchange earned Robux for real-world currency, developers and creators must meet certain conditions, such as having earned the minimum amount of Robux required to qualify for the program, a verified developer account, and an account in good standing. On January 31, 2022, we reduced the minimum amount of earned Robux required to qualify for the program from 100,000 Robux to 50,000 Robux and subsequently on January 31, 2023, we further reduced the minimum requirement from 50,000 Robux to 30,000 Robux. The Company recognizes the expense associated with the Developer Exchange Program as Robux are earned by developers and creators that are qualified and registered in the Developer Exchange Program. |
Infrastructure and Trust & Safety Expense | Infrastructure and Trust & Safety Expense —Infrastructure and trust & safety expense consists primarily of expenses related to the operation of our data centers and technical infrastructure in order to deliver our Platform to our users and are expensed as incurred. Infrastructure expenses also include personnel costs and allocated overhead for employees and team members whose primary responsibilities relate to supporting our infrastructure and trust & safety initiatives. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense — The Company measures and recognizes stock-based compensation expense for all stock-based awards, including stock options, unregistered restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) granted to employees, directors, and non-employees, and stock purchase rights granted under the 2020 ESPP to employees, based on the estimated grant date fair value of the awards. The fair value of each stock option and stock purchase right granted is estimated using the Black-Scholes option-pricing model and is recognized as compensation expense on a straight-line basis over the requisite service period of the awards. The Black-Scholes option pricing model requires certain subjective inputs and assumptions, including the fair value of the Company’s Class A common stock, the expected term, risk-free interest rates, expected stock price volatility, and expected dividend yield of our Class A common stock. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. These assumptions and estimates are as follows: • Fair value of Class A common stock— Prior to the Direct Listing, the fair value of the shares of Class A common stock underlying the stock options and RSUs has historically been determined by the Company’s Board of Directors along with management as there was no public market for the underlying common stock. The Company’s Board of Directors along with management determined the fair value of the Company’s common stock by considering a number of objective and subjective factors including: contemporaneous third-party valuations of its common stock, the valuation of comparable companies, sales of the Company’s common and convertible preferred stock to outside investors in arms-length transactions, the Company’s operating and financial performance, the lack of marketability, and the general and industry specific economic outlook, amongst other factors. After the completion of the Direct listing, the fair value of the Company’s Class A common stock is determined based on the NYSE closing price on the date of grant. • Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term assumptions are determined based on the vesting terms, estimated exercise behavior, post-vesting cancellations and contractual lives of the awards. • Risk-free interest rates—The risk-free interest rate is based on the implied yields in effect at the time of the grant of U.S. Treasury notes with terms approximately equal to the expected term of the award. • Expected stock price volatility— Prior to the Direct Listing, the Company used the historical volatility of the Class A common stock price of similar publicly-traded peer companies. After the completion of the Direct Listing, the Company continues to use the historical volatility of the stock price of similar publicly traded peer companies since it has not established sufficient public trading history. • Expected dividend yield—The Company utilizes a dividend yield of zero, as it has no history or plan of declaring dividends on its common stock. RSUs granted by the Company prior to March 2021 vest upon the satisfaction of both a service-based vesting condition, which is typically four years, and a liquidity event-related performance vesting condition. The liquidity event-related performance vesting condition was satisfied on March 2, 2021 (the “Effective Date”) and the Company recorded a cumulative stock-based compensation expense as of the Direct Listing date for those RSUs for which the service-based vesting condition has been satisfied. Stock-based compensation related to the remaining service-based period after the liquidity event-related performance vesting condition was satisfied is recorded over the remaining requisite service period using the accelerated attribution method. For RSUs granted subsequent to the Direct Listing, we recognize stock-based compensation expense based on grant date fair value on a straight-line basis over the requisite service period for the entire award. Th e grant date fair value of our Class A common stock associated with our RSUs granted subsequent to the Direct Listing is determined based on the NYSE closing price on the date of grant. In February 2021, the Leadership Development and Compensation Committee of the Company’s Board of Directors granted the CEO a Long-Term Performance Award (“CEO Long-Term Performance Award”), an RSU award that includes a service and a market condition. The fair value of the CEO Long-Term Performance Award was determined using a Monte Carlo simulation model. The fair value of the common stock underlying the award was determined by the Company’s Board of Directors along with management by considering a number of objective and subjective factors. The Company estimated the expected term based on the time period from the valuation date to the end of the performance period. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes. The expected volatility is derived from the historical stock volatility of selected peers over a period equivalent to the expected term of the CEO Long-Term Performance Award. The associated stock-based compensation is recorded over the derived service period, using the accelerated attribution method. If the stock price goals are met sooner than the derived service period, the Company will adjust the stock-based compensation expense to reflect the cumulative expense associated with the vested portion of the CEO Long-Term Performance Award. Provided that David Baszucki continues to be the CEO of the Company, stock-based compensation expense is recognized over the derived service period, regardless of whether the stock price goals are achieved. The Company records forfeitures when they occur for all stock-based awards. |
Advertising Expense | Advertising Expense |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share —For the year ended December 31, 2021, basic and diluted net loss per share attributable to common stockholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred stock to be participating securities as the holders of such stock have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the preferred stockholders do not have a contractual obligation to share in the Company’s losses. For all years presented, basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred stock, stock options, RSUs, RSAs, convertible preferred stock warrants, and common stock warrants, as applicable, are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for all periods presented. |
Income Taxes | Income Taxes —The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefit for which the future realization is uncertain. The tax effects of a position are recognized only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments. |
Leases | Leases —The Company accounts for lessee and lessor arrangements as follows: Lessee Arrangements The Company leases facilities under non-cancellable operating lease agreements. These leases have varying terms up to 12 years and generally contain leasehold improvement incentives, rent holidays, and escalation clauses. In addition, some of these leases have renewal options for up to five years after expiration of the initial term. The Company determines if an arrangement contains a lease at inception. The Company determines if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration. Operating lease right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term. Operating lease liabilities represent our obligation to make lease payments arising from the lease at the commencement date and are recognized based on the present value of lease payments over the lease term at the lease commencement date. Operating lease ROU assets are recognized as the lease liability, adjusted for lease incentives received, initial direct costs, and prepayments made, if any. In determining the present value of lease payments, the Company discounts future lease payments using its incremental borrowing rate (“IBR”) since the implicit rate in our various leases is unknown. The IBR represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company utilizes a market-based approach to estimate the IBR, which requires significant judgment. The Company primarily considers the current economic environment, lease term and currency in which the lease is denominated, as well as (i) yields on corporate bond with a credit rating similar to the Company; (ii) yields on our outstanding unsecured debt; and (iii) indicative pricing on both secured and unsecured debt received from potential lenders (if any). Certain lease agreements include options to renew or early terminate the lease, and we include such extension periods when it is reasonably certain that they will be exercised and include such periods beyond the early termination date when it is reasonably certain the early terminations will not be exercised. Lease expense is recognized on a straight-line basis over the lease term. Variable lease payments are expensed when the underlying uncertainty is resolved, which is generally when the obligation for those costs are incurred and are excluded from the measurement of the right-of-use assets and lease liabilities. Variable lease payments primarily include common-area maintenance, utilities, taxes or other operating costs, which are generally based on a percentage of actual expenses incurred or a fluctuating rate which is unknown at the inception of the contract. Leases with an initial term of 12 months or less (“short-term leases”) are not recognized on the balance sheet. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, “ Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ”. Under ASU 2021-08, an acquirer must recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. Prior to this ASU, an acquirer generally recognized contract assets acquired and contract liabilities assumed that arose from contracts with customers at fair value on the acquisition date. The Company adopted the ASU on January 1, 2023 and the adoption did not have a material impact on the Company ’ s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires public entities to disclose expanded information about their reportable segment(s)’ significant expenses and other segment items on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The ASU is required to be applied retrospectively to all prior periods presented in the financial statements once adopted. The Company is evaluating the disclosure requirements related to the new standard. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose specific tax rate reconciliation categories, as well as income taxes paid disaggregated by jurisdiction, amongst other disclosure enhancements. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU can be adopted on a prospective or retrospective basis. The Company is evaluating the disclosure requirements related to the new standard. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property Plant and Equipment, Useful Life | The estimated useful life for each asset category is as follows: Property and Equipment Estimated Useful Life Servers and related equipment 5 years Computer hardware and software 2 - 5 years Furniture and fixtures 2 years Leasehold improvements Shorter of remaining lease term or estimated useful life Property and equipment, net, consisted of the following (in thousands): As of December 31, 2023 2022 Servers and related equipment and software $ 914,989 $ 741,418 Computer hardware and software licenses 43,732 23,647 Furniture and fixtures 520 446 Leasehold improvements 101,785 69,311 Construction in progress 77,043 24,306 Total property and equipment 1,138,069 859,128 Less accumulated depreciation and amortization (442,709) (266,782) Property and equipment—net $ 695,360 $ 592,346 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated By Geography | The following table summarizes revenue by region based on the billing country of users (in thousands, except percentages): Year Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage United States and Canada (1) $ 1,803,812 64 % $ 1,465,955 66 % $ 1,298,938 68 % Europe 505,633 18 404,431 18 357,656 19 Asia-Pacific, including Australia and New Zealand 286,930 10 204,261 8 145,464 7 Rest of world 202,899 7 150,405 7 117,123 6 Total $ 2,799,274 100 % $ 2,225,052 100 % $ 1,919,181 100 % (1) The Company’s revenues in the U.S. were 60%, 62%, and 63% of consolidated revenues for each of the years ended December 31, 2023, 2022, and 2021, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The components of lease expense were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease expense $ 139,482 $ 90,933 $ 53,442 Variable and short-term lease expense $ 31,655 $ 11,586 $ 3,860 |
Schedule of Non-cancelable Operating Leases | The following table presents future lease payments under the Company’s non-cancellable operating leases as of December 31, 2023 (in thousands): Year ending December 31, 2024 $ 97,524 2025 146,863 2026 133,076 2027 112,626 2028 96,542 Thereafter 421,443 Total lease payments $ 1,008,074 Less: imputed interest (1) (250,275) Present value of lease liabilities $ 757,799 (1) Calculated using each lease’s incremental borrowing rate. |
Schedule of Supplemental Information | The following table presents the weighted average remaining lease term and discount rates as of December 31, 2023, and December 31, 2022: As of December 31, 2023 2022 Weighted average remaining lease term (years) 7.9 7.8 Weighted average discount rate 6.3 % 5.5 % Supplemental cash and noncash information related to operating leases is as follows (in thousands): Year ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities (1) $ 105,337 $ 70,515 $ 52,942 Lease liabilities arising from obtaining new right-of-use assets (noncash) $ 256,500 $ 373,844 $ 70,068 (1) The years ended December 31, 2023, 2022, and 2021 excludes $16.6 million, $1.8 million, and $9.1 million, respectively, of leasehold incentives received from the landlord. |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cash Equivalents and Short and Long-Term Investments | The following is a summary of the Company’s cash equivalents and short-term and long-term investments (in thousands): As of December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Debt Securities Level 1 Money market funds $ 614,888 $ — $ — $ 614,888 $ 614,888 $ — $ — U.S. Treasury securities 1,692,700 2,007 (2,547) 1,692,160 — 1,155,218 536,942 Subtotal 2,307,588 2,007 (2,547) 2,307,048 614,888 1,155,218 536,942 Level 2 U.S. agency securities 286,007 27 (197) 285,837 — 137,151 148,686 Foreign government securities 12,866 74 (28) 12,912 — 1,489 11,423 Commercial paper 184,465 — — 184,465 14,827 169,638 — Corporate debt securities 396,171 1,992 (1,234) 396,929 — 50,581 346,348 Subtotal 879,509 2,093 (1,459) 880,143 14,827 358,859 506,457 Total Debt Securities $ 3,187,097 $ 4,100 $ (4,006) $ 3,187,191 $ 629,715 $ 1,514,077 $ 1,043,399 Equity Securities Level 1 Mutual funds (1) $ 731 $ — $ 731 $ — Total Equity Securities $ 731 $ — $ 731 $ — Total Investments $ 3,187,097 $ 4,100 $ (4,006) $ 3,187,922 $ 629,715 $ 1,514,808 $ 1,043,399 (1) The equity securities relate to the Company’s nonqualified deferred compensation plan and are held in a rabbi trust. Refer to Note 14, “Employee and Director Benefits”, to the notes to the consolidated financial statements for more information. As of December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Debt Securities Level 1 Money market funds $ 1,903,880 $ — $ — $ 1,903,880 $ 1,903,880 $ — $ — Total Investments $ 1,903,880 $ — $ — $ 1,903,880 $ 1,903,880 $ — $ — |
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table presents fair values and gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ 486,424 $ (2,547) $ — $ — $ 486,424 $ (2,547) U.S. agency securities 182,475 (197) — — 182,475 (197) Foreign government securities 7,374 (28) — — 7,374 (28) Corporate debt securities 240,913 (1,234) — — 240,913 (1,234) Total $ 917,186 $ (4,006) $ — $ — $ 917,186 $ (4,006) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s preliminary allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Speechly Acquisition Date (in thousands): September 18, 2023 Cash and cash equivalents $ 970 Other current assets acquired 111 Intangible assets, net Developed technology, useful life of five years 2,800 Goodwill 7,536 Other current liabilities assumed $ (1,117) Other long-term liabilities assumed (182) Total purchase price $ 10,118 The following table summarizes the Company’s allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Byfron Acquisition Date (in thousands): October 11, 2022 Cash and cash equivalents $ 380 Goodwill 3,882 Identified intangible assets 5,500 Other assets 169 Other current liabilities $ (328) Total purchase price $ 9,603 The following table summarizes the Company’s allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Hamul Acquisition Date (in thousands): April 1, 2022 Cash and cash equivalents $ 3,020 Goodwill 12,382 Identified intangible assets 4,500 Deferred tax liabilities (579) Total purchase price $ 19,323 The following table summarizes the Company’s allocation of the purchase consideration based on the fair value of assets acquired and liabilities assumed at the Guilded Acquisition Date (in thousands): August 16, 2021 Cash and cash equivalents $ 593 Goodwill 58,503 Identified intangible assets 19,600 Deferred tax liabilities (999) Accrued expenses and other current liabilities (138) Total purchase price $ 77,559 |
Schedule of Aggregate Purchase Consideration | The aggregate purchase consideration comprised of the following (in thousands): Fair Value Cash paid $ 7,603 Cash holdback 2,000 Total purchase price $ 9,603 Fair Value Cash paid $ 9,185 Common stock issued 4,009 Replacement awards attributable to pre-acquisition service 6,129 Total purchase price $ 19,323 Fair Value Cash paid $ 46,285 Roblox Class A common stock issued 22,744 Replacement awards attributable to pre-acquisition service 8,530 Total purchase price $ 77,559 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table presents details of the identifiable assets acquired (in thousands, except estimated useful life): Carrying Estimated Useful Life (Years) Developed technology $ 5,500 5 Total $ 5,500 The following table presents details of the identifiable assets acquired (in thousands, except estimated useful life): Carrying Estimated Useful Life (Years) Developed technology $ 4,500 5 Total $ 4,500 The following table presents details of the identifiable intangible assets acquired at the Guilded Acquisition Date (in thousands, except estimated useful life): Carrying Amount Estimated Useful Life (Years) Developed technology $ 19,100 5 Trade name 500 5 Total $ 19,600 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table represents the changes to goodwill from December 31, 2021 to December 31, 2023 (in thousands): Carrying Amount Balance as of December 31, 2021 $ 118,071 Additions from acquisitions 16,264 Balance as of December 31, 2022 $ 134,335 Additions from acquisitions 7,536 Foreign currency translation adjustments 258 Balance as of December 31, 2023 $ 142,129 |
Schedule of Finite-Lived Intangible Assets | The following tables present details of the Company’s finite-lived intangible assets as of December 31, 2023 and December 31, 2022 (in thousands): As of December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 75,455 $ (39,411) $ 36,044 Patents 14,200 (650) 13,550 Assembled workforce 10,000 (7,374) 2,626 Trade name 500 (233) 267 Total intangible assets $ 100,155 $ (47,668) $ 52,487 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 72,059 $ (24,240) $ 47,819 Assembled workforce 10,000 (4,042) 5,958 Trade name 500 (133) 367 Total intangible assets $ 82,559 $ (28,415) $ 54,144 |
Schedule of Expected Future Amortization Expenses Related to the Intangible Assets | Expected future amortization expenses related to the intangible assets as of December 31, 2023 are as follows (in thousands): Year ending December 31: 2024 $ 18,954 2025 15,727 2026 6,692 2027 3,129 2028 1,934 Thereafter 6,051 Total remaining amortization $ 52,487 |
Other Balance Sheet Components
Other Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Balance Sheet Components [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): As of December 31, 2023 2022 Prepaid expenses $ 48,555 $ 45,173 Accrued interest receivable 14,697 6,026 Other current assets 11,297 10,442 Total prepaid expenses and other current assets $ 74,549 $ 61,641 |
Schedule of Property And Equipment, Net | The estimated useful life for each asset category is as follows: Property and Equipment Estimated Useful Life Servers and related equipment 5 years Computer hardware and software 2 - 5 years Furniture and fixtures 2 years Leasehold improvements Shorter of remaining lease term or estimated useful life Property and equipment, net, consisted of the following (in thousands): As of December 31, 2023 2022 Servers and related equipment and software $ 914,989 $ 741,418 Computer hardware and software licenses 43,732 23,647 Furniture and fixtures 520 446 Leasehold improvements 101,785 69,311 Construction in progress 77,043 24,306 Total property and equipment 1,138,069 859,128 Less accumulated depreciation and amortization (442,709) (266,782) Property and equipment—net $ 695,360 $ 592,346 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of December 31, 2023 2022 Accrued operating expenses $ 51,921 $ 80,122 Short term operating lease liabilities 111,293 73,235 Accrued interest on the 2030 Notes 6,458 6,458 Taxes payable 59,632 49,361 Accrued compensation and other employee related liabilities 32,125 21,003 Other current liabilities 9,692 5,827 Total accrued expenses and other current liabilities $ 271,121 $ 236,006 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instrument Redemption | Year Percentage 2024 101.938 % 2025 100.969 % 2026 and thereafter 100.000 % |
Schedule of Long-term Debt | The net carrying amount of the 2030 Notes, which is presented as a component of long-term debt in the Company’s consolidated financial statements, was as follows (in thousands): As of December 31, 2023 2022 2030 Notes Principal $ 1,000,000 $ 1,000,000 Unamortized issuance costs (9,700) (11,016) Net carrying amount $ 990,300 $ 988,984 |
Schedule of Interest Expense | Interest expense related to the 2030 Notes was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Contractual interest expense $ 38,750 $ 38,642 $ 6,781 Amortization of debt issuance costs 1,316 1,261 216 Total interest expense $ 40,066 $ 39,903 $ 6,997 |
Schedule of Maturities of 2023 Notes | Future interest and principal payments related to the 2030 Notes, as of December 31, 2023, were as follows (in thousands): Year ending December 31, 2024 $ 38,750 2025 38,750 2026 38,750 2027 38,750 2028 38,750 Thereafter 1,058,120 Total future interest and principal payments related to the 2030 Notes $ 1,251,870 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Obligations | Non-cancellable contractual purchase obligations, primarily related to the Company’s data center hosting providers and software vendors, as of December 31, 2023, are as follows (in thousands): Year ending December 31, 2024 $ 223,201 2025 157,973 2026 78,117 2027 261 2028 209 Thereafter — Total non-cancellable contractual purchase obligations $ 459,761 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Preferred Stock [Abstract] | |
Schedule of Convertible Preferred Stock Outstanding | The following table summarizes the convertible preferred stock outstanding immediately prior to the conversion into common stock, and the rights and preferences of the Company’s respective series preceding the Direct Listing in March 2021 (in thousands except per share data): Series Shares Per share Per share Aggregate Carrying Authorized Outstanding A 28,000 16,358 $ 0.02 $ 0.02 $ 327 $ 313 B 45,532 45,532 $ 0.03 $ 0.03 1,070 1,054 C 95,290 95,290 $ 0.03 $ 0.03 2,935 4,150 D 54,860 54,215 $ 0.04 $ 0.04 2,150 2,097 D-1 44,706 44,706 $ 0.09 $ 0.09 4,172 12,998 E 24,340 24,340 $ 1.03 $ 1.03 25,000 24,906 F 33,149 33,149 $ 4.53 $ 4.53 150,000 149,640 G 23,645 23,645 $ 6.34 $ 6.34 150,000 149,669 H 12,222 11,889 $ 45.00 $ 45.00 535,000 534,286 Total 361,744 349,124 $ 870,654 $ 879,113 The following table summarizes the convertible preferred stock outstanding prior to the conversion into common stock, and the rights and preferences of the Company’s respective series as of December 31, 2020 (in thousands except per share data): Series Per share Per share Aggregate Carrying Authorized Outstanding A 28,000 16,358 $ 0.02 $ 0.02 $ 327 $ 313 B 45,532 45,532 $ 0.03 $ 0.03 1,070 1,054 C 95,290 95,290 $ 0.03 $ 0.03 2,935 4,150 D 54,860 54,215 $ 0.04 $ 0.04 2,150 2,097 D-1 44,706 44,706 $ 0.09 $ 0.09 4,172 12,998 E 24,340 24,340 $ 1.03 $ 1.03 25,000 24,906 F 33,149 33,149 $ 4.53 $ 4.53 150,000 149,640 G 23,645 23,645 $ 6.34 $ 6.34 150,000 149,669 Total 349,522 337,235 $ 335,654 $ 344,827 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Shares Available for Future Issuance | The Company reserved shares of common stock for future issuance as follows (in thousands): As of December 31, 2023 2022 2021 Stock options outstanding 40,159 51,591 63,267 RSUs outstanding 39,846 30,322 14,684 PSUs 905 415 — CEO Long-Term Performance Award 11,500 11,500 11,500 2020 Equity Incentive Plan 66,114 59,945 52,811 2020 Employee Stock Purchase Plan 16,075 11,093 5,809 Stock warrants outstanding 264 264 324 RSAs outstanding 149 500 468 Total 175,012 165,630 148,863 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Infrastructure and trust & safety $ 92,147 $ 56,197 $ 35,255 Research and development 607,593 398,899 219,851 General and administrative 131,577 109,607 72,929 Sales and marketing 36,650 24,795 13,907 Total stock-based compensation expense $ 867,967 $ 589,498 $ 341,942 |
Schedule of Valuation Assumptions | The following table presents the assumptions used in estimating the grant date fair value of purchase rights granted under the 2020 ESPP for the offerings made in the respective years including reset and rollover: Year Ended December 31, 2023 2022 2021 Risk-free interest rate 4.78% - 5.61% 0.71% - 3.35% 0.06% - 0.25% Expected volatility 47.92% - 75.99% 54.16% - 81.51% 46.97% - 56.91% Dividend yield —% —% —% Expected terms (in years) 0.49 - 2.00 0.50 - 2.01 0.44 - 2.00 |
Schedule of Summarizes the Company's Stock Option Activity | The following table summarizes the Company’s stock option activity (in thousands, except per option data and remaining contractual term): Options Outstanding Number of Weighted- Weighted-Average Remaining Aggregate Intrinsic Value Balances as of December 31, 2020 98,502 $ 2.55 7.76 $ 3,838,994 Granted — — Cancelled, forfeited, and expired (1,862) $ 3.95 Exercised (33,373) $ 1.95 Balances as of December 31, 2021 63,267 $ 2.82 6.97 $ 6,348,395 Granted — — Cancelled, forfeited, and expired (2,061) $ 4.06 Exercised (9,615) $ 2.37 Balances as of December 31, 2022 51,591 $ 2.85 6.00 $ 1,321,183 Granted — — Cancelled, forfeited, and expired (762) $ 4.60 Exercised (10,670) $ 2.23 Balances as of December 31, 2023 40,159 $ 2.98 5.16 $ 1,716,171 Exercisable as of December 31, 2023 37,753 $ 2.86 5.08 $ 1,618,078 Vested and expected to vest at December 31, 2023 40,159 $ 2.98 5.16 $ 1,716,171 |
Schedule of Company's Restricted Stock Units and Unregistered Restricted Stock Awards Activity | The following table summarizes the Company’s RSU and RSA activity (in thousands, except per share data): Restricted Stock Units Unregistered Restricted Stock Awards Number of Weighted- Number of Weighted- Unvested as of December 31, 2020 3,061 $ 31.55 388 $ 37.75 Granted 13,382 $ 78.92 209 $ 81.67 Vested and released (1,376) $ 38.46 (129) $ 37.75 Cancelled (383) $ 52.78 — — Unvested as of December 31, 2021 14,684 $ 68.03 468 $ 57.37 Granted 25,540 $ 41.09 298 $ 46.00 Vested and released (8,169) $ 57.65 (266) $ 53.67 Cancelled (1,733) $ 57.58 — — Unvested as of December 31, 2022 30,322 $ 48.73 500 $ 52.55 Granted 27,377 $ 37.59 — — Vested and released (14,812) $ 45.97 (351) $ 55.31 Cancelled (3,041) $ 46.79 — — Unvested as of December 31, 2023 39,846 $ 42.25 149 $ 46.00 |
Schedule of Measured Based on an Average of Our Stock Price | The following table summarizes the various Company Stock Price Hurdles and associated RSUs eligible to vest over each performance period (in thousands, except Company Stock Price Hurdles): Company Stock Price Hurdle Number of RSUs Eligible to Vest Performance Period Commencement Dates as Measured from the Effective Date 1 $ 165.00 750 2 years 2 $ 200.00 750 3 years 3 $ 235.00 2,000 4 years 4 $ 270.00 2,000 5 years 5 $ 305.00 2,000 5 years 6 $ 340.00 2,000 5 years 7 $ 375.00 2,000 5 years |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows a summary of changes in accumulated other comprehensive income/(loss) by component for the periods presented (in thousands): Foreign Currency Translation Unrealized Gains/(Losses) on Available-For-Sale Debt Securities Total Balance as of December 31, 2021 $ 62 $ — $ 62 Other comprehensive income/(loss) before reclassifications 609 — 609 Amounts reclassified from accumulated other comprehensive income/(loss) — — — Change in accumulated other comprehensive income/(loss), net of tax 609 — 609 Balance as of December 31, 2022 $ 671 $ — $ 671 Other comprehensive income/(loss) before reclassifications 771 (1,845) (1,074) Amounts reclassified from accumulated other comprehensive income/(loss) — 1,939 1,939 Change in accumulated other comprehensive income/(loss), net of tax 771 94 865 Balance as of December 31, 2023 $ 1,442 $ 94 $ 1,536 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ (1,151,493) $ (916,592) $ (472,141) Foreign (6,990) (13,997) (31,659) $ (1,158,483) $ (930,589) $ (503,800) |
Schedule of Provision for (benefit from) Income Taxes | The components of the provision for/(benefit from) income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current provision: Federal $ (144) $ 144 $ — State (561) 2,405 678 Foreign 1,255 1,582 — Total current provision 550 4,131 678 Deferred provision: Federal — (474) (878) State — (105) (120) Foreign (96) — — Total deferred provision (96) (579) (998) Provision for/(benefit from) income taxes $ 454 $ 3,552 $ (320) |
Schedule of Effective Income Tax Rate Reconciliation | The provision for/(benefit from) income taxes differs from the amount estimated by applying the statutory income (loss) before taxes as follows: Year Ended December 31, 2023 2022 2021 Federal tax at statutory rate 21 % 21 % 21 % State tax at statutory rate, net of federal benefit 2 2 2 Research and development credits 6 2 10 Change in valuation allowance (27) (21) (117) Stock-based compensation (3) (4) 84 Other 1 0 0 Provision for/(benefit from) income taxes 0 % 0 % 0 % |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the components of the Company’s deferred tax assets (liabilities) for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Deferred tax assets: Accrued expenses $ 14,231 $ 13,593 $ 11,466 Deferred revenue 246,144 198,130 107,221 Net operating loss carryforwards 599,804 490,309 505,668 Tax credit carryforwards 155,246 85,527 65,855 Stock-based compensation 29,083 28,238 35,368 Operating lease liabilities 176,007 130,688 56,897 Capitalized research and development 366,898 178,488 — Interest — — 1,556 Other 2,914 1,988 1,369 Total gross deferred tax asset 1,590,327 1,126,961 785,400 Less: valuation allowance (1,222,211) (907,226) (711,297) Net deferred tax assets 368,116 219,735 74,103 Deferred tax liabilities: Fixed assets (28,645) (92,009) (13,889) Intangible assets (2,735) (6,694) (9,060) Operating lease right-of-use assets (154,334) (121,032) (51,154) Deferred cost of revenue (182,495) — — Total deferred tax liabilities (368,209) (219,735) (74,103) Net deferred tax liabilities $ (93) $ — $ — |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): As of December 31, 2023 2022 2021 Unrecognized tax benefits at beginning of year $ 96,372 $ 72,919 $ 19,386 Increases related to current year tax positions 59,917 25,458 53,440 Increases related to prior year tax positions 16,100 865 93 Decreases related to prior year tax positions — (2,870) — Unrecognized tax benefits at end of year $ 172,389 $ 96,372 $ 72,919 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Year ended December 31, 2023 2022 2021 Basic and diluted net loss per share Numerator Consolidated net loss $ (1,158,937) $ (934,141) $ (503,480) Less: net loss attributable to noncontrolling interests (6,991) (9,775) (11,829) Net loss attributable to common stockholders $ (1,151,946) $ (924,366) $ (491,651) Denominator Weighted-average common shares used in computing net loss per share attributable to common stockholders, based and diluted 616,445 595,559 505,858 Net loss per share attributable to common stockholders, basic and diluted $ (1.87) $ (1.55) $ (0.97) |
Schedule of Antidilutive Securities | The potential shares of common stock that were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive are as follows (in thousands): Year ended December 31, 2023 2022 2021 Stock options outstanding 40,159 51,591 63,267 RSUs outstanding 39,846 30,322 14,684 2020 ESPP 3,347 2,311 523 2023 PSUs Grants based on performance target achievement at period-end (1) 9 — — Stock warrants outstanding 264 264 324 RSAs outstanding 149 500 468 Total 83,774 84,988 79,266 (1) Represents the hypothetical number of shares that would have been earned under the Company’s 2023 PSU Grants had the performance period ended on the balance sheet date. |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Long-lived Assets by Geographic Areas | Long-lived assets, comprising property and equipment, net, by geographic area were as follows (in thousands): As of December 31, 2023 2022 United States $ 646,572 $ 553,127 Rest of world 48,788 39,219 Total $ 695,360 $ 592,346 |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
General and administrative | $ 390,055 | $ 297,317 | $ 303,020 | |
Direct Listing of Class A Common Stock | ||||
Disaggregation of Revenue [Line Items] | ||||
General and administrative | $ 50,700 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment, Useful Life (Details) | Dec. 31, 2023 |
Servers and related equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Minimum | Computer hardware and software | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Maximum | Computer hardware and software | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2022 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2023 robux | Jan. 31, 2022 robux | Jan. 30, 2022 robux | ||
Disaggregation of Revenue [Line Items] | ||||||||
Average lifetime of a paying user | 28 months | 28 months | 23 months | |||||
Decrease in revenue | $ 2,799,274,000 | $ 2,225,052,000 | $ 1,919,181,000 | |||||
Cost of revenue | [1] | 649,115,000 | 547,658,000 | 496,870,000 | ||||
Developer exchange program, minimum virtual currency earned requirement | robux | 30,000 | 50,000 | 100,000 | |||||
Restricted cash | $ 0 | 0 | ||||||
Payment remittance term (within) | 30 days | |||||||
Intangible asset, useful life (up to) | 3 years 2 months 12 days | |||||||
Advertising cost | $ 38,300,000 | $ 36,200,000 | $ 26,800,000 | |||||
Operating lease, renewal term (up to) | 5 years | |||||||
RSUs outstanding | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Vesting period | 4 years | |||||||
One Distribution Channel | Accounts Receivable | Customer Concentration Risk | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Percentage of revenue | 30% | 37% | ||||||
One Distribution Channel | Revenue Benchmark | Customer Concentration Risk | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Percentage of revenue | 30% | 32% | 35% | |||||
Second Distribution Channel | Accounts Receivable | Customer Concentration Risk | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Percentage of revenue | 26% | 19% | ||||||
Second Distribution Channel | Revenue Benchmark | Customer Concentration Risk | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Percentage of revenue | 17% | 18% | 19% | |||||
Maximum | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Average lifetime of a paying user | 25 months | |||||||
Intangible asset, useful life (up to) | 5 years | |||||||
Operating lease term | 12 years | |||||||
Minimum | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Average lifetime of a paying user | 23 months | |||||||
Service Life | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Decrease in revenue | $ (344,900,000) | |||||||
Cost of revenue | $ (79,300,000) | |||||||
[1] Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,799,274 | $ 2,225,052 | $ 1,919,181 |
Revenue Benchmark | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,799,274 | $ 2,225,052 | $ 1,919,181 |
Percentage of Revenue | 100% | 100% | 100% |
Revenue Benchmark | United States and Canada | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,803,812 | $ 1,465,955 | $ 1,298,938 |
Percentage of Revenue | 64% | 66% | 68% |
Revenue Benchmark | Europe | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 505,633 | $ 404,431 | $ 357,656 |
Percentage of Revenue | 18% | 18% | 19% |
Revenue Benchmark | Asia-Pacific, including Australia and New Zealand | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 286,930 | $ 204,261 | $ 145,464 |
Percentage of Revenue | 10% | 8% | 7% |
Revenue Benchmark | Rest of world | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 202,899 | $ 150,405 | $ 117,123 |
Percentage of Revenue | 7% | 7% | 6% |
Revenue Benchmark | United States | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Revenue | 60% | 62% | 63% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue—current portion | $ 2,406,292 | $ 1,941,943 | |
Revenue Benchmark | Durable Virtual Items | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 91% | 90% | 89% |
Revenue Benchmark | Consumable Virtual Items | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 9% | 10% | 11% |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 139,482 | $ 90,933 | $ 53,442 |
Variable and short-term lease expense | $ 31,655 | $ 11,586 | $ 3,860 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Feb. 11, 2023 ft² | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease liabilities current | $ 111,293 | $ 73,235 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | ||
Operating Lease, Lease Not Yet Commenced | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, lease not yet commenced, liability to be paid | $ 188,000 | |||
Sub Lessor Agreement | ||||
Lessee, Lease, Description [Line Items] | ||||
Area of real estate property | ft² | 78,911 | |||
Lessor term of contract | 4 years | |||
Lessor, operating lease, payment to be received | $ 22,200 | |||
Asset impairment charges | 7,000 | |||
Operating lease, impairment loss | 4,800 | |||
Impairment of long-lived assets | $ 2,200 | |||
Minimum | Operating Lease, Lease Not Yet Commenced | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 7 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 12 years | |||
Maximum | Operating Lease, Lease Not Yet Commenced | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term | 10 years |
Leases - Schedule of Non-cancel
Leases - Schedule of Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 97,524 |
2025 | 146,863 |
2026 | 133,076 |
2027 | 112,626 |
2028 | 96,542 |
Thereafter | 421,443 |
Total lease payments | 1,008,074 |
Less: imputed interest | (250,275) |
Present value of lease liabilities | $ 757,799 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Weighted average remaining lease term (years) | 7 years 10 months 24 days | 7 years 9 months 18 days | |
Weighted average discount rate | 6.30% | 5.50% | |
Cash paid for amounts included in the measurement of lease liabilities | $ 105,337 | $ 70,515 | $ 52,942 |
Lease liabilities arising from obtaining new right-of-use assets (noncash) | 256,500 | 373,844 | 70,068 |
Leasehold incentives received | $ 16,600 | $ 1,800 | $ 9,100 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments - Schedule of Cash Equivalents and Short and Long-Term Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | $ 3,187,097 | ||
Gross Unrealized Gains | 4,100 | ||
Gross Unrealized Losses | (4,006) | ||
Fair Value | 3,187,922 | ||
Cash Equivalents | 629,715 | ||
Short-Term Investments | 1,514,808 | ||
Long-Term Investments | 1,043,399 | ||
Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 3,187,097 | ||
Gross Unrealized Gains | 4,100 | ||
Gross Unrealized Losses | (4,006) | ||
Fair Value | 3,187,191 | ||
Cash Equivalents | 629,715 | ||
Short-Term Investments | 1,514,077 | ||
Long-Term Investments | 1,043,399 | ||
Fair Value, Inputs, Level 1 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 2,307,588 | $ 1,903,880 | |
Gross Unrealized Gains | $ 0 | 2,007 | |
Gross Unrealized Losses | 0 | (2,547) | |
Fair Value | 2,307,048 | 1,903,880 | |
Cash Equivalents | 614,888 | 1,903,880 | |
Short-Term Investments | 1,155,218 | 0 | |
Long-Term Investments | 536,942 | 0 | |
Fair Value, Inputs, Level 1 | Equity Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | |||
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | 731 | ||
Cash Equivalents | 0 | ||
Short-Term Investments | 731 | ||
Long-Term Investments | 0 | ||
Fair Value, Inputs, Level 2 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 879,509 | ||
Gross Unrealized Gains | 2,093 | ||
Gross Unrealized Losses | (1,459) | ||
Fair Value | 880,143 | ||
Cash Equivalents | 14,827 | ||
Short-Term Investments | 358,859 | ||
Long-Term Investments | 506,457 | ||
Money market funds | Fair Value, Inputs, Level 1 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 614,888 | 1,903,880 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | $ 0 | 0 | |
Fair Value | 614,888 | 1,903,880 | |
Cash Equivalents | 614,888 | 1,903,880 | |
Short-Term Investments | 0 | 0 | |
Long-Term Investments | 0 | $ 0 | |
U.S. Treasury securities | Fair Value, Inputs, Level 1 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 1,692,700 | ||
Gross Unrealized Gains | 2,007 | ||
Gross Unrealized Losses | (2,547) | ||
Fair Value | 1,692,160 | ||
Cash Equivalents | 0 | ||
Short-Term Investments | 1,155,218 | ||
Long-Term Investments | 536,942 | ||
U.S. agency securities | Fair Value, Inputs, Level 2 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 286,007 | ||
Gross Unrealized Gains | 27 | ||
Gross Unrealized Losses | (197) | ||
Fair Value | 285,837 | ||
Cash Equivalents | 0 | ||
Short-Term Investments | 137,151 | ||
Long-Term Investments | 148,686 | ||
Foreign government securities | Fair Value, Inputs, Level 2 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 12,866 | ||
Gross Unrealized Gains | 74 | ||
Gross Unrealized Losses | (28) | ||
Fair Value | 12,912 | ||
Cash Equivalents | 0 | ||
Short-Term Investments | 1,489 | ||
Long-Term Investments | 11,423 | ||
Commercial paper | Fair Value, Inputs, Level 2 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 184,465 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 184,465 | ||
Cash Equivalents | 14,827 | ||
Short-Term Investments | 169,638 | ||
Long-Term Investments | 0 | ||
Corporate debt securities | Fair Value, Inputs, Level 2 | Debt Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 396,171 | ||
Gross Unrealized Gains | 1,992 | ||
Gross Unrealized Losses | (1,234) | ||
Fair Value | 396,929 | ||
Cash Equivalents | 0 | ||
Short-Term Investments | 50,581 | ||
Long-Term Investments | 346,348 | ||
Mutual funds | Fair Value, Inputs, Level 1 | Equity Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | |||
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | 731 | ||
Cash Equivalents | 0 | ||
Short-Term Investments | 731 | ||
Long-Term Investments | $ 0 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | |
Short-term debt investments contractual maturities period | 1 year |
Minimum | |
Debt Securities, Available-for-Sale [Line Items] | |
Long-term debt investments contractual maturities period | 1 year |
Maximum | |
Debt Securities, Available-for-Sale [Line Items] | |
Long-term debt investments contractual maturities period | 3 years |
Cash Equivalents and Investme_5
Cash Equivalents and Investments - Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less than 12 Months, Fair Value | $ 917,186 |
Less than 12 Months, Unrealized Losses | (4,006) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 917,186 |
Total, Unrealized Losses | (4,006) |
U.S. Treasury securities | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less than 12 Months, Fair Value | 486,424 |
Less than 12 Months, Unrealized Losses | (2,547) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 486,424 |
Total, Unrealized Losses | (2,547) |
U.S. agency securities | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less than 12 Months, Fair Value | 182,475 |
Less than 12 Months, Unrealized Losses | (197) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 182,475 |
Total, Unrealized Losses | (197) |
Foreign government securities | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less than 12 Months, Fair Value | 7,374 |
Less than 12 Months, Unrealized Losses | (28) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 7,374 |
Total, Unrealized Losses | (28) |
Corporate debt securities | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Less than 12 Months, Fair Value | 240,913 |
Less than 12 Months, Unrealized Losses | (1,234) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 240,913 |
Total, Unrealized Losses | $ (1,234) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Sep. 18, 2023 USD ($) | Oct. 11, 2022 USD ($) | Apr. 01, 2022 USD ($) shares | Aug. 16, 2021 USD ($) shares | Dec. 31, 2021 USD ($) acquisition | |
Series of Individually Immaterial Asset Acquisitions | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Asset acquisition, number of asset acquisitions | acquisition | 2 | ||||
Asset acquisition, consideration | $ 8,500 | ||||
Series of Individually Immaterial Asset Acquisitions | Assembled workforce | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | $ 8,500 | ||||
Estimated Useful Life (Years) | 3 years | ||||
Speechly, Inc. | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Business combination total consideration transferred value | $ 10,100 | ||||
Payment of cash to acquire business | 4,800 | ||||
Cash holdback | $ 5,300 | ||||
Byfron Technologies | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Business combination total consideration transferred value | $ 9,603 | ||||
Payment of cash to acquire business | 7,603 | ||||
Cash holdback | $ 2,000 | ||||
Holdback period | 18 months | ||||
Founder service arrangement, amount | $ 9,600 | ||||
Business combination consideration service period | 3 years | ||||
Business combination research and development expense acquire, period of recognition | 3 years | ||||
Hamul, Inc. | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Business combination total consideration transferred value | $ 19,323 | ||||
Payment of cash to acquire business | 9,185 | ||||
Business combination fair value of equity issued or issuable | 4,000 | ||||
Business combination unrecognized share based combination acquiree | $ 7,600 | ||||
Business combination unrecognized share based combination acquiree period of recognition | 3 years | ||||
Hamul, Inc. | Common Class A | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Business combination equity issued (in shares) | shares | 400,000 | ||||
Guilded | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Business combination total consideration transferred value | $ 77,559 | ||||
Payment of cash to acquire business | 46,285 | ||||
Business combination unrecognized share based combination acquiree | $ 8,500 | ||||
Business combination unrecognized share based combination acquiree period of recognition | 3 years | ||||
Guilded | Common Class A | |||||
Business Combination and Asset Acquisition [Line Items] | |||||
Business combination equity issued (in shares) | shares | 500,000 | ||||
Business combination fair value of equity issued or issuable | $ 31,300 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 18, 2023 | Dec. 31, 2022 | Oct. 11, 2022 | Apr. 01, 2022 | Dec. 31, 2021 | Aug. 16, 2021 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 142,129 | $ 134,335 | $ 118,071 | ||||
Intangible asset, useful life (up to) | 3 years 2 months 12 days | ||||||
Speechly, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 970 | ||||||
Other current assets acquired | 111 | ||||||
Developed technology, useful life of five years | 2,800 | ||||||
Goodwill | 7,536 | ||||||
Other assets | 111 | ||||||
Accrued expenses and other current liabilities | (1,117) | ||||||
Other long-term liabilities assumed | (182) | ||||||
Other current liabilities | (1,117) | ||||||
Total purchase price | $ 10,118 | ||||||
Intangible asset, useful life (up to) | 5 years | ||||||
Byfron Technologies | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 380 | ||||||
Other current assets acquired | 169 | ||||||
Goodwill | 3,882 | ||||||
Identified intangible assets | 5,500 | ||||||
Other assets | 169 | ||||||
Accrued expenses and other current liabilities | (328) | ||||||
Other current liabilities | (328) | ||||||
Total purchase price | $ 9,603 | ||||||
Hamul, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 3,020 | ||||||
Goodwill | 12,382 | ||||||
Identified intangible assets | 4,500 | ||||||
Deferred tax liabilities | (579) | ||||||
Total purchase price | $ 19,323 | ||||||
Guilded | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 593 | ||||||
Goodwill | 58,503 | ||||||
Identified intangible assets | 19,600 | ||||||
Accrued expenses and other current liabilities | (138) | ||||||
Other current liabilities | (138) | ||||||
Deferred tax liabilities | (999) | ||||||
Total purchase price | $ 77,559 |
Acquisitions - Schedule of Aggr
Acquisitions - Schedule of Aggregate Purchase Consideration (Detail) - USD ($) $ in Thousands | Oct. 11, 2022 | Apr. 01, 2022 | Aug. 16, 2021 |
Byfron Technologies | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 7,603 | ||
Cash holdback | 2,000 | ||
Total purchase price | $ 9,603 | ||
Hamul, Inc. | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 9,185 | ||
Common stock issued | 4,009 | ||
Replacement awards attributable to pre-acquisition service | 6,129 | ||
Total purchase price | $ 19,323 | ||
Guilded | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 46,285 | ||
Common stock issued | 22,744 | ||
Replacement awards attributable to pre-acquisition service | 8,530 | ||
Total purchase price | $ 77,559 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquired Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Thousands | Oct. 11, 2022 | Apr. 01, 2022 | Aug. 16, 2021 |
Byfron Technologies | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 5,500 | ||
Byfron Technologies | Developed technology | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 5,500 | ||
Estimated Useful Life (Years) | 5 years | ||
Hamul, Inc. | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 4,500 | ||
Hamul, Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 4,500 | ||
Estimated Useful Life (Years) | 5 years | ||
Guilded | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 19,600 | ||
Guilded | Developed technology | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 19,100 | ||
Estimated Useful Life (Years) | 5 years | ||
Guilded | Trade name | |||
Business Acquisition [Line Items] | |||
Identified intangible assets | $ 500 | ||
Estimated Useful Life (Years) | 5 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 134,335 | $ 118,071 |
Additions from acquisitions | 7,536 | 16,264 |
Foreign currency translation adjustments | 258 | |
Ending balance | $ 142,129 | $ 134,335 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 100,155 | $ 82,559 |
Accumulated Amortization | (47,668) | (28,415) |
Total remaining amortization | $ 52,487 | 54,144 |
Estimated useful life | 3 years 2 months 12 days | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 75,455 | 72,059 |
Accumulated Amortization | (39,411) | (24,240) |
Total remaining amortization | $ 36,044 | 47,819 |
Estimated useful life | 2 years 4 months 24 days | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 14,200 | |
Accumulated Amortization | (650) | |
Total remaining amortization | $ 13,550 | |
Estimated useful life | 8 years 8 months 12 days | |
Assembled workforce | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,000 | 10,000 |
Accumulated Amortization | (7,374) | (4,042) |
Total remaining amortization | $ 2,626 | 5,958 |
Estimated useful life | 9 months 18 days | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 500 | 500 |
Accumulated Amortization | (233) | (133) |
Total remaining amortization | $ 267 | $ 367 |
Estimated useful life | 2 years 8 months 12 days |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 0.6 | $ 0.6 | |
Intangible asset, useful life (up to) | 3 years 2 months 12 days | ||
Amortization expense | $ 19.3 | $ 16.4 | $ 10.8 |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life (up to) | 2 years 4 months 24 days | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life (up to) | 8 years 8 months 12 days | ||
Assembled workforce | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life (up to) | 9 months 18 days | ||
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life (up to) | 2 years 8 months 12 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expenses Related To The Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 18,954 | |
2025 | 15,727 | |
2026 | 6,692 | |
2027 | 3,129 | |
2028 | 1,934 | |
Thereafter | 6,051 | |
Total remaining amortization | $ 52,487 | $ 54,144 |
Other Balance Sheet Component_2
Other Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Balance Sheet Components [Abstract] | ||
Prepaid expenses | $ 48,555 | $ 45,173 |
Accrued interest receivable | 14,697 | 6,026 |
Other current assets | 11,297 | 10,442 |
Total prepaid expenses and other current assets | $ 74,549 | $ 61,641 |
Other Balance Sheet Component_3
Other Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,138,069 | $ 859,128 |
Less accumulated depreciation and amortization | (442,709) | (266,782) |
Property and equipment—net | 695,360 | 592,346 |
Servers and related equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 914,989 | 741,418 |
Computer hardware and software licenses | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 43,732 | 23,647 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 520 | 446 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 101,785 | 69,311 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 77,043 | $ 24,306 |
Other Balance Sheet Component_4
Other Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Balance Sheet Components [Abstract] | |||
Depreciation expense | $ 188.9 | $ 113.7 | $ 64.9 |
Other Balance Sheet Component_5
Other Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Balance Sheet Components [Abstract] | ||
Accrued operating expenses | $ 51,921 | $ 80,122 |
Short term operating lease liabilities | 111,293 | 73,235 |
Accrued interest on the 2030 Notes | 6,458 | 6,458 |
Taxes payable | 59,632 | 49,361 |
Accrued compensation and other employee related liabilities | 32,125 | 21,003 |
Other current liabilities | 9,692 | 5,827 |
Total accrued expenses and other current liabilities | $ 271,121 | $ 236,006 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Inputs, Level 2 | Long-term Debt | |||
Short-term Debt [Line Items] | |||
Financial liabilities, fair value disclosure | $ 891.8 | $ 788.2 | |
2030 Notes | Unsecured Debt | |||
Short-term Debt [Line Items] | |||
Debt instrument, aggregated principal amount | $ 1,000 | ||
Interest rate | 3.875% | ||
Proceeds from debt, net of issuance costs | $ 987.5 | ||
Debt issuance costs | $ 12.5 | ||
Effective interest rate | 4.05% | ||
2030 Notes | Unsecured Debt | Redemption Period, at Any Time Prior to November 1, 2024 | |||
Short-term Debt [Line Items] | |||
Percentage of principal amount of debt redeemed (up to) | 40% | ||
Debt instrument, redemption price, percentage | 103.875% | ||
Debt instrument, redemption terms, threshold percentage of principal amount outstanding | 50% | ||
Debt instrument, redemption terms, period | 180 days | ||
2030 Notes | Unsecured Debt | Redemption Period, at Any Time Prior to November 1, 2024 | |||
Short-term Debt [Line Items] | |||
Debt instrument, redemption price, percentage | 100% | ||
2030 Notes | Unsecured Debt | Redemption Period, in Connection with Tender Offer | |||
Short-term Debt [Line Items] | |||
Debt instrument, redemption terms, percentage of outstanding debt hold by lender (no less than) | 90% | ||
Debt Instrument, redemption terms, period following purchase date (not more than) | 30 days | ||
2030 Notes | Unsecured Debt | Redemption Period, in Connection with Tender Offer | Minimum | |||
Short-term Debt [Line Items] | |||
Debt Instrument, redemption terms, prior notice period | 10 days | ||
2030 Notes | Unsecured Debt | Redemption Period, in Connection with Tender Offer | Maximum | |||
Short-term Debt [Line Items] | |||
Debt Instrument, redemption terms, prior notice period | 60 days | ||
2030 Notes | Unsecured Debt | Redemption Period, Certain Circumstances Involving Change of Control Event | |||
Short-term Debt [Line Items] | |||
Debt instrument, redemption price, percentage | 101% |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instrument Redemption (Details) - 2030 Notes - Unsecured Debt | Oct. 29, 2021 |
2024 | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage | 101.938% |
2025 | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage | 100.969% |
2026 and thereafter | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage | 100% |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total future interest and principal payments related to the 2030 Notes | $ 1,251,870 | |
Unsecured Debt | 2030 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 1,000,000 | $ 1,000,000 |
Unamortized issuance costs | (9,700) | (11,016) |
Total future interest and principal payments related to the 2030 Notes | $ 990,300 | $ 988,984 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Total interest expense | $ 40,707 | $ 39,903 | $ 6,998 |
2030 Notes | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 38,750 | 38,642 | 6,781 |
Amortization of debt issuance costs | 1,316 | 1,261 | 216 |
Total interest expense | $ 40,066 | $ 39,903 | $ 6,997 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of 2023 Notes (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 38,750 |
2025 | 38,750 |
2026 | 38,750 |
2027 | 38,750 |
2028 | 38,750 |
Thereafter | 1,058,120 |
Total future interest and principal payments related to the 2030 Notes | $ 1,251,870 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Purchase Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 223,201 |
2025 | 157,973 |
2026 | 78,117 |
2027 | 261 |
2028 | 209 |
Thereafter | 0 |
Total non-cancellable contractual purchase obligations | $ 459,761 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding, amount | $ 11.6 | $ 9.9 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |||
Mar. 31, 2021 | Jan. 31, 2021 | Mar. 09, 2021 | Nov. 30, 2020 | |
Series H Convertible Preferred Stock | ||||
Convertible Preferred Stock [Line Items] | ||||
Temporary equity shares issued during the period shares (in shares) | 11,888,886 | |||
Temporary equity issue price (in dollars per share) | $ 45 | $ 45 | ||
Proceeds from issuance of redeemable convertible preferred stock | $ 534.3 | |||
Common Class A | Before Direct Listing | ||||
Convertible Preferred Stock [Line Items] | ||||
Conversion of temporary equity into permanent equity shares (in shares) | 349,123,976 | |||
Common Class A | Affiliated Entity | ||||
Convertible Preferred Stock [Line Items] | ||||
Conversion of common stock from one class into another class (in shares) | 57,300,000 | |||
Common Class B | Affiliated Entity | ||||
Convertible Preferred Stock [Line Items] | ||||
Conversion of common stock from one class into another class (in shares) | 57,300,000 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Schedule of Convertible Preferred Stock Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | |
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 361,744 | 349,522 | |
Shares outstanding (in shares) | 349,124 | 337,235 | |
Aggregate Liquidation Preference | $ 870,654 | $ 335,654 | |
Carrying Value of Preferred | $ 879,113 | $ 344,827 | |
A | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 28,000 | 28,000 | |
Shares outstanding (in shares) | 16,358 | 16,358 | |
Per share price at issuance (in dollars per share) | $ 0.02 | $ 0.02 | |
Per share conversion price (in dollars per share) | $ 0.02 | $ 0.02 | |
Aggregate Liquidation Preference | $ 327 | $ 327 | |
Carrying Value of Preferred | $ 313 | $ 313 | |
B | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 45,532 | 45,532 | |
Shares outstanding (in shares) | 45,532 | 45,532 | |
Per share price at issuance (in dollars per share) | $ 0.03 | $ 0.03 | |
Per share conversion price (in dollars per share) | $ 0.03 | $ 0.03 | |
Aggregate Liquidation Preference | $ 1,070 | $ 1,070 | |
Carrying Value of Preferred | $ 1,054 | $ 1,054 | |
C | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 95,290 | 95,290 | |
Shares outstanding (in shares) | 95,290 | 95,290 | |
Per share price at issuance (in dollars per share) | $ 0.03 | $ 0.03 | |
Per share conversion price (in dollars per share) | $ 0.03 | $ 0.03 | |
Aggregate Liquidation Preference | $ 2,935 | $ 2,935 | |
Carrying Value of Preferred | $ 4,150 | $ 4,150 | |
D | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 54,860 | 54,860 | |
Shares outstanding (in shares) | 54,215 | 54,215 | |
Per share price at issuance (in dollars per share) | $ 0.04 | $ 0.04 | |
Per share conversion price (in dollars per share) | $ 0.04 | $ 0.04 | |
Aggregate Liquidation Preference | $ 2,150 | $ 2,150 | |
Carrying Value of Preferred | $ 2,097 | $ 2,097 | |
D-1 | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 44,706 | 44,706 | |
Shares outstanding (in shares) | 44,706 | 44,706 | |
Per share price at issuance (in dollars per share) | $ 0.09 | $ 0.09 | |
Per share conversion price (in dollars per share) | $ 0.09 | $ 0.09 | |
Aggregate Liquidation Preference | $ 4,172 | $ 4,172 | |
Carrying Value of Preferred | $ 12,998 | $ 12,998 | |
E | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 24,340 | 24,340 | |
Shares outstanding (in shares) | 24,340 | 24,340 | |
Per share price at issuance (in dollars per share) | $ 1.03 | $ 1.03 | |
Per share conversion price (in dollars per share) | $ 1.03 | $ 1.03 | |
Aggregate Liquidation Preference | $ 25,000 | $ 25,000 | |
Carrying Value of Preferred | $ 24,906 | $ 24,906 | |
F | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 33,149 | 33,149 | |
Shares outstanding (in shares) | 33,149 | 33,149 | |
Per share price at issuance (in dollars per share) | $ 4.53 | $ 4.53 | |
Per share conversion price (in dollars per share) | $ 4.53 | $ 4.53 | |
Aggregate Liquidation Preference | $ 150,000 | $ 150,000 | |
Carrying Value of Preferred | $ 149,640 | $ 149,640 | |
Series G Redeemable Convertible Preferred Stock [Member] | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 23,645 | 23,645 | |
Shares outstanding (in shares) | 23,645 | 23,645 | |
Per share price at issuance (in dollars per share) | $ 6.34 | $ 6.34 | |
Per share conversion price (in dollars per share) | $ 6.34 | $ 6.34 | |
Aggregate Liquidation Preference | $ 150,000 | $ 150,000 | |
Carrying Value of Preferred | $ 149,669 | $ 149,669 | |
H | |||
Convertible Preferred Stock [Line Items] | |||
Shares authorized (in shares) | 12,222 | ||
Shares outstanding (in shares) | 11,889 | ||
Per share price at issuance (in dollars per share) | $ 45 | $ 45 | |
Per share conversion price (in dollars per share) | $ 45 | ||
Aggregate Liquidation Preference | $ 535,000 | ||
Carrying Value of Preferred | $ 534,286 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Additional Information (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 vote $ / shares shares | Dec. 31, 2021 shares | Dec. 31, 2022 shares | |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 100,000 | ||
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | |
Common stock, conversion ratio | 1 | ||
Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Common Class A | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 4,935,000 | 4,935,000 | |
Common stock, number of votes allocated to each share | vote | 1 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 65,000 | 65,000 | |
Common stock, number of votes allocated to each share | vote | 20 | ||
Maximum percentage of stock outstanding of a particular class before which shares of another class are converted into this class | 30% | ||
Term of conversion, threshold percentage of common stock outstanding | 67% | ||
Common Class B | David Baszucki Founder | |||
Class of Stock [Line Items] | |||
Number of Class B common stock converted into Class A common stock (in shares) | 1,300 | 6,000 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Schedule of Future Issuance (Details) - shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 175,012 | 165,630 | 148,863 |
Stock options outstanding | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 40,159 | 51,591 | 63,267 |
RSUs outstanding | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 39,846 | 30,322 | 14,684 |
Performance Shares | PSUs | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 905 | 415 | 0 |
Performance Shares | CEO Long-Term Performance Award | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 11,500 | 11,500 | 11,500 |
2020 Equity Incentive Plan | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 66,114 | 59,945 | 52,811 |
2020 Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 16,075 | 11,093 | 5,809 |
Stock warrants outstanding | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 264 | 264 | 324 |
RSAs outstanding | |||
Class of Stock [Line Items] | |||
Common stock shares reserved for future issuance (in shares) | 149 | 500 | 468 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 17 Months Ended | |||||
Feb. 28, 2021 USD ($) tranche $ / shares shares | Jun. 30, 2023 measure $ / shares shares | Dec. 31, 2023 USD ($) tranche period $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 $ / shares shares | Dec. 31, 2017 | Dec. 31, 2004 | Dec. 31, 2023 USD ($) tranche period $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock shares reserved for future issuance (in shares) | shares | 175,012,000 | 165,630,000 | 148,863,000 | 175,012,000 | |||||
Share-based compensation arrangement options, exercises in period, intrinsic value | $ 373,400 | $ 423,300 | $ 2,548,300 | ||||||
Share-based compensation, options vested in period, fair value | 51,900 | 64,100 | 79,900 | ||||||
Share based payment arrangement, unvested award options, cost not yet recognized, amount | 26,900 | $ 26,900 | |||||||
Stock-based compensation | $ 867,967 | 589,498 | 341,942 | ||||||
Holders of Ten Percent or More of The Voting Equity Capital | Common Class A | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock shares reserved for future issuance (in shares) | shares | 60,000,000 | ||||||||
2020 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options to be granted price as a percentage of fair value | 110% | ||||||||
Percentage of voting stock eligible for options | 10% | ||||||||
2020 Equity Incentive Plan | Common Class A | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock shares reserved for future issuance, annual increase (in shares) | shares | 75,000,000 | ||||||||
Common stock shares reserved for future issuance, annual increase, percent | 5% | ||||||||
2020 Equity Incentive Plan | Holders of Ten Percent or More of The Voting Equity Capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation by share based payment arrangement contractual term of stock options | 5 years | ||||||||
2020 ESPP | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation | $ 32,000 | $ 25,700 | $ 9,900 | ||||||
2020 ESPP | Common Class A | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options to be granted price as a percentage of fair value | 85% | ||||||||
Common stock shares reserved for future issuance (in shares) | shares | 6,000,000 | ||||||||
Common stock shares reserved for future issuance, annual increase (in shares) | shares | 15,000,000 | ||||||||
Common stock shares reserved for future issuance, annual increase, percent | 1% | ||||||||
Offering period, employee stock purchase plan | 24 months | ||||||||
Number of purchase periods | period | 4 | 4 | |||||||
Purchase period, employee stock purchase plan | 6 months | ||||||||
CEO Long-Term Performance Award | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based payment arrangement, plan modification, incremental cost | $ 1,300 | ||||||||
Stock options outstanding | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock shares reserved for future issuance (in shares) | shares | 40,159,000 | 51,591,000 | 63,267,000 | 40,159,000 | |||||
Share based payment arrangement, unvested award, period for recognition | 1 year | ||||||||
Stock options outstanding | 2020 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of voting stock eligible for options | 10% | ||||||||
Share based compensation by share based payment arrangement number of shares available for issuance (in shares) | shares | 0 | 0 | |||||||
Stock options outstanding | 2020 Equity Incentive Plan | Holders of Ten Percent or More of The Voting Equity Capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation by share based payment arrangement contractual term of stock options | 5 years | 5 years | |||||||
RSUs outstanding | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock shares reserved for future issuance (in shares) | shares | 39,846,000 | 30,322,000 | 14,684,000 | 39,846,000 | |||||
Share based payment arrangement, unvested award, period for recognition | 2 years 2 months 12 days | ||||||||
Unrecognized compensation, equity instruments other than options | $ 1,588,000 | $ 1,588,000 | |||||||
Stock-based compensation | $ 21,300 | ||||||||
Service period | 4 years | 3 years | |||||||
Grant date fair value (in dollars per share) | $ / shares | $ 42.25 | $ 48.73 | $ 68.03 | $ 31.55 | $ 42.25 | ||||
Granted (in dollars per share) | $ / shares | $ 37.59 | $ 41.09 | $ 78.92 | ||||||
RSUs outstanding | PSUs | Founder CEO | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, beginning of award performance period, period after effective date | 2 years | ||||||||
RSUs outstanding | Founder And Ceo Long Term Performance Award | Founder CEO | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, number of tranches | tranche | 7 | 7 | |||||||
RSUs outstanding | CEO Long-Term Performance Award | Founder CEO | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation, equity instruments other than options | $ 92,400 | $ 92,400 | |||||||
RSUs outstanding | CEO Long-Term Performance Award | Founder CEO | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation, equity instruments other than options | $ 232,200 | ||||||||
Stock-based compensation | 48,900 | $ 48,900 | $ 42,000 | ||||||
Number of RSUs eligible to vest (in shares) | shares | 11,500,000 | ||||||||
Share-based compensation arrangement by share-based payment award, number of tranches | tranche | 7 | ||||||||
Number of consecutive trading days for the stock hurdle price to be achieved | 90 days | ||||||||
Share price (in dollars per share) | $ / shares | $ 165 | ||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 20.19 | ||||||||
Unregistered Restricted Stock Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation, equity instruments other than options | $ 3,200 | $ 3,200 | |||||||
Service period | 1 year 3 months 18 days | ||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 46 | $ 52.55 | $ 57.37 | $ 37.75 | $ 46 | ||||
Granted (in dollars per share) | $ / shares | $ 0 | $ 46 | $ 81.67 | ||||||
Performance-Based Restricted Stock Units (RSUs) | CEO Long-Term Performance Award | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation | $ 3,200 | $ 3,000 | |||||||
PSU target number of shares (in shares) | shares | 207,284 | ||||||||
Granted (in dollars per share) | $ / shares | $ 43.13 | ||||||||
Performance stock units, performance period | 3 years | ||||||||
Estimated total share-based payment expense | $ 7,500 | ||||||||
Share-based payment award, number of measurement periods | period | 5 | 5 | |||||||
Performance-Based Restricted Stock Units (RSUs) | 2023 PSU Grants | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based payment arrangement, unvested award options, cost not yet recognized, amount | $ 12,800 | $ 12,800 | |||||||
Stock-based compensation | $ 6,400 | ||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, number of performance measures | measure | 2 | ||||||||
PSU target number of shares (in shares) | shares | 277,361 | ||||||||
Share-based compensation arrangement by share-based payment award, target number of shares, performance measures of cumulative, percentage | 80% | ||||||||
Share-based compensation arrangement by share-based payment award, target number of shares, adjusted EBITDA, percentage | 20% | ||||||||
Granted (in dollars per share) | $ / shares | $ 45.70 | ||||||||
Performance-Based Restricted Stock Units (RSUs) | 2023 PSU Grants | Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 50% | ||||||||
Performance-Based Restricted Stock Units (RSUs) | 2023 PSU Grants | Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 50% | ||||||||
Minimum | 2020 Equity Incentive Plan | Holders of Ten Percent or More of The Voting Equity Capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options to be granted price as a percentage of fair value | 100% | ||||||||
Minimum | Stock options outstanding | 2020 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options to be granted price as a percentage of fair value | 85% | ||||||||
Percentage of voting stock eligible for options | 10% | ||||||||
Minimum | Stock options outstanding | 2020 Equity Incentive Plan | Holders of Ten Percent or More of The Voting Equity Capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options to be granted price as a percentage of fair value | 110% | 110% | |||||||
Minimum | RSUs outstanding | CEO Long-Term Performance Award | Founder CEO | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based payment arrangement, unvested award, period for recognition | 3 years 5 months 12 days | ||||||||
Minimum | Performance-Based Restricted Stock Units (RSUs) | CEO Long-Term Performance Award | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of shares earned of the target number of shares | 0% | ||||||||
Minimum | Performance-Based Restricted Stock Units (RSUs) | 2023 PSU Grants | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of shares earned of the target number of shares | 0% | ||||||||
Maximum | 2020 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation by share based payment arrangement contractual term of stock options | 10 years | ||||||||
Maximum | Stock options outstanding | 2020 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation by share based payment arrangement contractual term of stock options | 10 years | 10 years | |||||||
Maximum | RSUs outstanding | CEO Long-Term Performance Award | Founder CEO | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based payment arrangement, unvested award, period for recognition | 5 years 4 months 17 days | ||||||||
Maximum | Performance-Based Restricted Stock Units (RSUs) | CEO Long-Term Performance Award | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of shares earned of the target number of shares | 200% | ||||||||
Maximum | Performance-Based Restricted Stock Units (RSUs) | 2023 PSU Grants | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of shares earned of the target number of shares | 200% |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 867,967 | $ 589,498 | $ 341,942 |
Infrastructure and trust & safety | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 92,147 | 56,197 | 35,255 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 607,593 | 398,899 | 219,851 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 131,577 | 109,607 | 72,929 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 36,650 | $ 24,795 | $ 13,907 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Schedule of the Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares Subject to Options | ||||
Beginning balance (in shares) | 51,591 | 63,267 | 98,502 | |
Granted (in shares) | 0 | 0 | 0 | |
Cancelled, forfeited, and expired (in shares) | (762) | (2,061) | (1,862) | |
Exercised (in shares) | (10,670) | (9,615) | (33,373) | |
Ending balance (in shares) | 40,159 | 51,591 | 63,267 | 98,502 |
Exercisable (in shares) | 37,753 | |||
Vested and expected to vest (in shares) | 40,159 | |||
Weighted- Average Exercise Price (per Option) | ||||
Beginning balance, weighted average exercise price (in dollars per share) | $ 2.85 | $ 2.82 | $ 2.55 | |
Granted, weighted average exercise price (in dollars per share) | 0 | 0 | 0 | |
Cancelled, forfeited, and expired, weighted average exercise price (in dollars per share) | 4.60 | 4.06 | 3.95 | |
Exercised, weighted average exercise price (in dollars per share) | 2.23 | 2.37 | 1.95 | |
Ending balance, weighted average exercise price (in dollars per share) | 2.98 | $ 2.85 | $ 2.82 | $ 2.55 |
Exercisable, weighted average exercise price (in dollars per share) | 2.86 | |||
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ 2.98 | |||
Weighted-Average Remaining Contractual Term (Years) | 5 years 1 month 28 days | 6 years | 6 years 11 months 19 days | 7 years 9 months 3 days |
Exercisable, remaining contractual term | 5 years 29 days | |||
Vested and expected to vest, remaining contractual term | 5 years 1 month 28 days | |||
Aggregate intrinsic value | $ 1,716,171 | $ 1,321,183 | $ 6,348,395 | $ 3,838,994 |
Exercisable, aggregate intrinsic value | 1,618,078 | |||
Vested and expected to vest, aggregate intrinsic value | $ 1,716,171 |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense - Schedule of Company's Restricted Stock Units and Restricted Stock Awards Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units | |||
Number of Shares | |||
Beginning balance (in shares) | 30,322 | 14,684 | 3,061 |
Granted (in shares) | 27,377 | 25,540 | 13,382 |
Vested and released (in shares) | (14,812) | (8,169) | (1,376) |
Cancelled (in shares) | (3,041) | (1,733) | (383) |
Ending balance (in shares) | 39,846 | 30,322 | 14,684 |
Weighted- Average Grant Date Value per Share | |||
Beginning balance (in dollars per share) | $ 48.73 | $ 68.03 | $ 31.55 |
Granted (in dollars per share) | 37.59 | 41.09 | 78.92 |
Vested and released (in dollars per share) | 45.97 | 57.65 | 38.46 |
Cancelled (in dollars per share) | 46.79 | 57.58 | 52.78 |
Ending balance (in dollars per share) | $ 42.25 | $ 48.73 | $ 68.03 |
Unregistered Restricted Stock Awards | |||
Number of Shares | |||
Beginning balance (in shares) | 500 | 468 | 388 |
Granted (in shares) | 0 | 298 | 209 |
Vested and released (in shares) | (351) | (266) | (129) |
Cancelled (in shares) | 0 | 0 | 0 |
Ending balance (in shares) | 149 | 500 | 468 |
Weighted- Average Grant Date Value per Share | |||
Beginning balance (in dollars per share) | $ 52.55 | $ 57.37 | $ 37.75 |
Granted (in dollars per share) | 0 | 46 | 81.67 |
Vested and released (in dollars per share) | 55.31 | 53.67 | 37.75 |
Cancelled (in dollars per share) | 0 | 0 | 0 |
Ending balance (in dollars per share) | $ 46 | $ 52.55 | $ 57.37 |
Stock-Based Compensation Expe_7
Stock-Based Compensation Expense - Schedule of Measured Based on an Average of Our Stock Price (Details) shares in Thousands | 1 Months Ended |
Feb. 28, 2021 $ / shares shares | |
Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 165 |
Number of RSUs eligible to vest (in shares) | shares | 750 |
Performance Period Commencement Dates as Measured from the Effective Date | 2 years |
Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 200 |
Number of RSUs eligible to vest (in shares) | shares | 750 |
Performance Period Commencement Dates as Measured from the Effective Date | 3 years |
Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 235 |
Number of RSUs eligible to vest (in shares) | shares | 2,000 |
Performance Period Commencement Dates as Measured from the Effective Date | 4 years |
Tranche Four | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 270 |
Number of RSUs eligible to vest (in shares) | shares | 2,000 |
Performance Period Commencement Dates as Measured from the Effective Date | 5 years |
Tranche Five | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 305 |
Number of RSUs eligible to vest (in shares) | shares | 2,000 |
Performance Period Commencement Dates as Measured from the Effective Date | 5 years |
Tranche Six | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 340 |
Number of RSUs eligible to vest (in shares) | shares | 2,000 |
Performance Period Commencement Dates as Measured from the Effective Date | 5 years |
Tranche Seven | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company Stock Price Hurdle (in dollars per share) | $ / shares | $ 375 |
Number of RSUs eligible to vest (in shares) | shares | 2,000 |
Performance Period Commencement Dates as Measured from the Effective Date | 5 years |
Stock-Based Compensation Expe_8
Stock-Based Compensation Expense - Schedule of Valuation of ESPP Program (Details) - 2020 ESPP | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate, minimum | 4.78% | 0.71% | 0.06% |
Risk free interest rate, maximum | 5.61% | 3.35% | 0.25% |
Expected volatility rate, minimum | 47.92% | 54.16% | 46.97% |
Expected volatility rate, maximum | 75.99% | 81.51% | 56.91% |
Dividend yield | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected terms (in years) | 5 months 26 days | 6 months | 5 months 8 days |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected terms (in years) | 2 years | 2 years 3 days | 2 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance beginning | $ 305,035 | $ 592,923 | $ (232,381) |
Other comprehensive income/(loss), net of tax | 1,183 | 1,287 | (55) |
Balance ending | 68,626 | 305,035 | 592,923 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance beginning | 671 | 62 | 90 |
Other comprehensive income/(loss) before reclassifications | (1,074) | 609 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 1,939 | 0 | |
Other comprehensive income/(loss), net of tax | 865 | 609 | (28) |
Balance ending | 1,536 | 671 | 62 |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance beginning | 671 | 62 | |
Other comprehensive income/(loss) before reclassifications | 771 | 609 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | 0 | |
Other comprehensive income/(loss), net of tax | 771 | 609 | |
Balance ending | 1,442 | 671 | 62 |
Unrealized Gains/ (Losses) on Available-For-Sale Debt Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance beginning | 0 | 0 | |
Other comprehensive income/(loss) before reclassifications | (1,845) | 0 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | 1,939 | 0 | |
Other comprehensive income/(loss), net of tax | 94 | 0 | |
Balance ending | $ 94 | $ 0 | $ 0 |
Employee and Director Benefits
Employee and Director Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, deferral limit percent | 50% | ||
Defined contribution plan, employer contribution amount | $ 24.9 | $ 14.6 | $ 9.3 |
Employee | NQDC Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum percentage of salary | 90% | ||
Maximum granted, percentage | 100% | ||
Maximum percentage of cash bonus compensation | 65% | ||
Non-Employee Director Member | NQDC Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum percentage of salary | 100% | ||
First Three Percent Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of match | 100% | 100% | 100% |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 3% | 3% | |
Next Two Percent Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of match | 50% | 50% | |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 2% | 2% |
Joint Venture - Additional Info
Joint Venture - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 10, 2023 | Feb. 28, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Interest expense | $ 40,707,000 | $ 39,903,000 | $ 6,998,000 | ||
6.0% Notes Due 2026 | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest expense | $ 500,000 | ||||
6.0% Notes Due 2026 | Unsecured Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest rate | 6% | ||||
Songhua River Investment Limited | 6.0% Notes Due 2026 | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from debt, net of issuance costs | $ 14,700,000 | ||||
Roblox China Holding Corp | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment ownership percentage | 51% | ||||
Roblox China Holding Corp | 6.0% Notes Due 2026 | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from debt, net of issuance costs | 15,300,000 | ||||
Roblox China Holding Corp | 6.0% Notes Due 2026 | Unsecured Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Debt instrument, aggregated principal amount | $ 30,000,000 | ||||
Debt instrument, term of maturity date extension | 2 years | ||||
Roblox China Holding Corp | Songhua River Investment Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Minority interest percentage in joint venture | 49% | ||||
Roblox China Holding Corp | Songhua River Investment Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution by non controlling interest to the joint venture | $ 50,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (1,151,493) | $ (916,592) | $ (472,141) |
Foreign | (6,990) | (13,997) | (31,659) |
Loss before income taxes | $ (1,158,483) | $ (930,589) | $ (503,800) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision: | |||
Federal | $ (144) | $ 144 | $ 0 |
State | (561) | 2,405 | 678 |
Foreign | 1,255 | 1,582 | 0 |
Total current provision | 550 | 4,131 | 678 |
Deferred provision: | |||
Federal | 0 | (474) | (878) |
State | 0 | (105) | (120) |
Foreign | (96) | 0 | 0 |
Total deferred provision | (96) | (579) | (998) |
Provision for/(benefit from) income taxes | $ 454 | $ 3,552 | $ (320) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory rate | 21% | 21% | 21% |
State tax at statutory rate, net of federal benefit | 2% | 2% | 2% |
Research and development credits | 6% | 2% | 10% |
Change in valuation allowance | (27.00%) | (21.00%) | (117.00%) |
Stock-based compensation | (3.00%) | (4.00%) | 84% |
Other | 1% | 0% | 0% |
Provision for/(benefit from) income taxes | 0% | 0% | 0% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | |||
Accrued expenses | $ 14,231 | $ 13,593 | $ 11,466 |
Deferred revenue | 246,144 | 198,130 | 107,221 |
Net operating loss carryforwards | 599,804 | 490,309 | 505,668 |
Tax credit carryforwards | 155,246 | 85,527 | 65,855 |
Stock-based compensation | 29,083 | 28,238 | 35,368 |
Operating lease liabilities | 176,007 | 130,688 | 56,897 |
Capitalized research and development | 366,898 | 178,488 | 0 |
Interest | 0 | 0 | 1,556 |
Other | 2,914 | 1,988 | 1,369 |
Total gross deferred tax asset | 1,590,327 | 1,126,961 | 785,400 |
Less: valuation allowance | (1,222,211) | (907,226) | (711,297) |
Net deferred tax assets | 368,116 | 219,735 | 74,103 |
Deferred tax liabilities: | |||
Fixed assets | (28,645) | (92,009) | (13,889) |
Intangible assets | (2,735) | (6,694) | (9,060) |
Operating lease right-of-use assets | (154,334) | (121,032) | (51,154) |
Deferred cost of revenue | (182,495) | 0 | 0 |
Total deferred tax liabilities | (368,209) | (219,735) | (74,103) |
Net deferred tax liabilities | $ (93) | ||
Net deferred tax liabilities | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance, period increase (decrease) | $ 315,000,000 | $ 195,900,000 | $ 589,000,000 | |
Unrecognized tax benefits | 172,389,000 | 96,372,000 | 72,919,000 | $ 19,386,000 |
Unrecognized tax benefits that would impact effective tax rate | 1,400,000 | |||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 0 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 400,000 | $ 200,000 | $ 0 | |
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 52,200,000 | |||
Domestic Tax Authority | Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 2,382,300,000 | |||
Domestic Tax Authority | Federal | Research Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Research and development tax credit | 201,300,000 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 1,261,400,000 | |||
State and Local Jurisdiction | Federal | Research Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Research and development tax credit | 139,300,000 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 66,800,000 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 96,372 | $ 72,919 | $ 19,386 |
Increases related to current year tax positions | 59,917 | 25,458 | 53,440 |
Increases related to prior year tax positions | 16,100 | 865 | 93 |
Decreases related to prior year tax positions | 0 | (2,870) | 0 |
Unrecognized tax benefits at end of year | $ 172,389 | $ 96,372 | $ 72,919 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Common Share - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator | |||
Consolidated net loss | $ (1,158,937) | $ (934,141) | $ (503,480) |
Less: net loss attributable to noncontrolling interests | (6,991) | (9,775) | (11,829) |
Net loss attributable to common stockholders | $ (1,151,946) | $ (924,366) | $ (491,651) |
Denominator | |||
Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 616,445 | 595,559 | 505,858 |
Weighted-average common shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 616,445 | 595,559 | 505,858 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (1.87) | $ (1.55) | $ (0.97) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (1.87) | $ (1.55) | $ (0.97) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Common Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in share) | 83,774 | 84,988 | 79,266 |
Stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in share) | 40,159 | 51,591 | 63,267 |
RSUs outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in share) | 39,846 | 30,322 | 14,684 |
2020 ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in share) | 3,347 | 2,311 | 523 |
2023 PSUs Grants based on performance target achievement at period-end | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in share) | 9 | 0 | 0 |
Stock warrants outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in share) | 264 | 264 | 324 |
RSAs outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in share) | 149 | 500 | 468 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment—net | $ 695,360 | $ 592,346 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment—net | 646,572 | 553,127 |
Rest of world | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment—net | $ 48,788 | $ 39,219 |
Subsequent Events - (Details)
Subsequent Events - (Details) $ in Millions | Feb. 07, 2024 USD ($) ft² | Dec. 31, 2023 | Feb. 11, 2023 ft² |
Maximum | |||
Subsequent Event [Line Items] | |||
Operating lease term | 12 years | ||
Sub Lease Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Area of real estate property | ft² | 133,137 | ||
Operating lease term | 5 years | ||
Sub Lease Agreement | Minimum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Lessee, operating lease, annual base rent amount | $ 8 | ||
Sub Lease Agreement | Maximum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Lessee, operating lease, annual base rent amount | $ 9 | ||
Sub Lessor Agreement | |||
Subsequent Event [Line Items] | |||
Area of real estate property | ft² | 78,911 | ||
Lessor term of contract | 4 years | ||
Sub Lessor Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Area of real estate property | ft² | 61,773 | ||
Lessor term of contract | 3 years | ||
Sub Lessor Agreement | Minimum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Lessor, operating lease, expected annual income | $ 4 | ||
Sub Lessor Agreement | Maximum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Lessor, operating lease, expected annual income | $ 5 |