Roblox (RBLX) 16 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Anna Yen	IR
David Baszucki	CEO
Mike Guthrie	CFO
Mike Ng	Goldman Sachs
David Karnovsky	JPMorgan
Clark Lampen	BTIG
Brian Nowak	Morgan Stanley
Brandon Ross	LightShed
Matthew Thornton	Truist Securities
Bernie McTernan	Needham & Company
Drew Crum	Stifel
Omar Dessouky	Bank of America
Andrew Uerkwitz	Jefferies

Call transcript

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Operator

Good morning. My name is Audra, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Roblox Q4 2021 Earnings Conference Call. [Operator Instructions] Anna Yen, you may now begin your conference.

Anna Yen

Good morning, everyone, and thank you for joining our Q&A session to discuss Roblox' Q4 and Fiscal 2021 Results. Roblox' Baszucki; is Guthrie. CFO, today me CEO; and David Mike With

earnings Investor we remind this remarks published reserve questions. closed, and to I call, your a time for the on that letter Before some want and market we everyone will start, brief ir.roblox.com. website Relations at yesterday make after shareholder rest results On the our opening we of

and icon your at you For We'll the making of we not webcast the our of but strategy. participants, to where in please will limited including, your questions On expectations best can our our question type many as questions. results note do screen be as future today's business, statements, to, bottom take forward-looking possible. call, financial

subject risk that results uncertainties our XX, are included statements fiscal ended statements, could those in -- and quarter our risks for differ the SEC to including for such Form September our to in factors quarter actual and described described XXXX. XX-Q first forward-looking from ended filed materially our the in filings, are cause risks Forward-looking

forward-looking You except law. should our forward-looking any events. We required statements as on disclaim any not to update predictions of by obligation as rely future statements,

yesterday can certain of website. well During reported copies non-GAAP issued on Reconciliations metrics our as call, results in slides, non-GAAP for in found supplemental which can will this as also between our we release discuss press our measures. our financial GAAP and be be IR found

to archived that, turn shortly With is call I'll on will being over our call this webcast website be Finally, and the afterwards. David.

David Baszucki

wishing like we our welcome Guthrie of emerging and our Baszucki, of of be your all we're time, with office. large and and small. shared before investors, best our our this have you Great And this This the partnership we families Roblox is people highlights additional morning. joined year I'm we you, in we're at were hopefully, some and joining today. David by appreciate all shareholder COVID. Anna. Today, your with you're down. were Robloxians as X couple and from you to many as both Last optimism community world. We Mike mission not to the We'd that together live buttoned facts in with A quick heavily bringing our billion in letter. the in around dive stability us Thank

Latin and internationally, XX% ages growth to platform. In addition January X to both Asia in growth, that focus vision year-on-year, year-on-year, XXX% for strong in is And segment our our our which wonderful of to a together us. have through grew on in is all wonderful Pacific, XX of people India, over user addition on, XX-year-old of our validation lot January Japan countries America which bring we grew and a Europe,

start the of And of almost we recent using events vision have, XXX top at of has in experiences And Guthrie on wonderful pipeline our this any [new] highlight always, completely some XX And stuff with always thoughtfully are would live, I as with users. product that's carefully Roblox, a and focus. go and expanding types we announced, right partnership put Robotics. continue is on that, can hand branded lot to FIRST Mike As experiences over we making our stability. move highlight as Roblox XX% we the our And with and and stability. do these this NFL as towards we remarks. now core Over rollout Larsson. the are to we of Zara both self-serve. talk working we voice, exciting as is see the and safety And our we uses can side. it and as And have opening to as I'll if including look validated our to and the With that that, I'd we with of expand about just he partnerships, we'll where do fast fund like concerts our value safety primary to today to community we we've

Mike Guthrie

Thanks, wanted just as to want Dave. said. the Dave end of to on I -- some things

In year of XX.X% January. growth age in the addition XX in to did that high to rate DAUs comprise XX of all olds, demographic

segment, it's though So for a it's It's a as as it's segment growing not us. small quickly. large

mentioned, also Dave COVID. into basically X quarters we're As

time year-over-year. grew The been before. first we what year, and business which line even had it had this last was X quarters, X.Xx year in And tripling dramatically, our it top was quarters our the

we're lapping better into off have sure, is in What hopefully, significant period a jumping is that place fairly the do some growth. 'XX where or positioned. we're world for reopening, we just the, So bigger never obviously into a where we been and know,

We are at peak users on the platform.

for are over the first and time. over billion at having We hours engagement, peak $X X.X been billion

platform. and on or brand company excited on incentives never amazing have as the most shared engineering build professionals things next few to music side build Roblox. we never least, the the developer And more on had incredibly worked of developers the a never had with certainly more for content. not And never artists set to in had years. have stronger talented last more we've and amazing payers of We and on many over the economics product importantly, community We've our

we couldn't to really beyond, with taking open And jumping XXXX it excited morning. up. more and I look think and So be that, forward we'll into we this questions about

Anna Yen

Over to Audra. you,

Operator

Goldman [Operator Sachs. We'll Mike Ng Instructions] go first at to

Mike Ng

particularly could you And impact cards how gift have the bit I quarter, of was just may in on little impacted January that the bookings? in if December? about view talk a your wondering

Mike Guthrie

gift at more a really of us. grew world, question. accelerated its very just it's in for grew December. the priority an in a we as We What the had QX people gift front thanks rate they're that physical for the cards in we've cards channel. Gift business getting Mike, quickly. in cards. learned gift the highest It's And card powerful, incredible is huge incredibly

You doing company of item. been a been It's in suggest data certainly Roblox some deferred target trying good inside to have bit purchasing out. to that balances. the great such a We've that I figure came that might there users little into enough January. with gifting possible have don't January work

I to putting at in but one, want our product from to bit team quite growing don't is So take XXXX. make continue as that away statement. don't -- you I of do a store a to that really work, really going should card be value are going and behind this want prepaid looks the resources we We're some exciting to to what

Mike Ng

have just you little see and the a could about if just a evolving into quick XXXX? And bookings growth bit Great. Could then XXXX follow-up. I throughout talk you how

Mike Guthrie

see to XX-quarter guidance, give as basis, well, of we DAU Are -- a an chart users our a on lot. biggest we always probably don't at when early even look know. quarters comparing on most though, opens in a I payer against you we variety bookings before data, period. over things data, mean, Or and our engagement. look that. It's them now the but at I in of with or and The to up, is obviously, becoming is in and growing look long that, the were at And over I of bookings been users look us? I the and where our that formal is are like they point the see, has we charts business onetime When last, business? time our the is absolute of And growth world We engaged growth into the where really XX 'XX, as of 'XX and right are the been just started. has up growth Roblox? rates 'XX comparisons. quarterly from were separate the went What weekends. of a look clearly of really the now we X big and I the that XX%. XQ of a rates that the retaining quarter we of of growth in lot and and 'XX, just XXX% the had we 'XX XQ at COVID, And period the quarters bump those we in in times growth finally has users? immense levels. second Ebola, of rate that as do the of And answer with really XQ growth first up it raw they some were X quarter difference peak to COVID when represented yes. results open on staying in the the number from bookings weekdays We Between what first right quarters. was is for bookings, know that a also payers sequentially in at

through at every growth the the at when look just mostly Kingdom, school super we Friday, and United high high had at work started or we States weekend. normally if Monday COVID focused weren't people particular, on growth, the rates our of So versus United in day, because

we're of weekend down the necessarily significant. work, weekdays. growth is rates going the Now growth trend still our unwinding going back people kind that that are But to on is

be gives we high growth that as that business. rates returning so as great And of confidence us lap a to internet that we consumer believe to we'll say

of And time really the other it's accelerate. at would to talked at users, be things other we looking what doing. frame April, close as also things this overall, just side, then that and that look in investing But 'XX company the compares to as we're like And right we're starts do going what on as we're 'XX. at that. getting year, a on look focused down our should getting after indication that's we expect normalized changes we lot to June look year, last I May, having nowhere to difficult we X that look So And you're about. we're we're coming growth and in we we how we more a to business. at The late billion when that data, product, in data to doing focused comparisons that and can that an of when start think that

growth, optimistic the quite other as we're we into about platform expand areas. So especially

Operator

We'll move to Karnovsky next David JPMorgan. with

David Karnovsky

Mike, a your comments. up follow on prior maybe just

do bit these pertains to normalized level at it of a little spend As engagement a Or more full expect as further representing, this toward for weekdays? just sort right? see specifically, a U.S. regions Do point, U.K. reopening? readjustment of January head you and you post-pandemic and

Mike Guthrie

little for me David, back date be the will good trend this hard to We've It's exactly peg of we absolutely sort for watched question. a to while. normal.

mentioned a team in time. comments, of conference for today. big folks in a we're in the first the his in room long Dave time a It's office As

country has U.K. every from sense state. early think more bit from closings my But has sense, so state a than it very and of recent own it's have for that. mean going English, had been. is been and Scandinavia fluent a it And always U.S. But different approach different. a little than they people policy take different an cadence has it And is to a a policies was had few been smaller adjusting the openings I a core because I to user -- curve in to in perspective albeit we going very great by we the it's months. world us, are is had will The a Roblox. standpoint. market adopter different have of

pick the easy not like to it's So bottom.

externality COVID because either still see so far it not of it is -- -- I year -- things at possible obviously, I 'XX for that a a every impact think just I numbers, of kinds little we'll peg away. in business, businesses reopening. trends between somewhere that's it's it's still such open while. all about will going sense, having -- of optimistic 'XX an then we're look is When or hopefully, but guess. two had in we're you as [dispersed] years with, the that year-over-year And May-June, odd down sort And So shutting by for a such think, I it's be, to opening it's almost deal April-May, in an X business it's I think an for these

David Karnovsky

for maybe Roblox, reach Dave, far will and a bit Nike of then can are persistent more to they a view so you like feedback platform experience you're actions as interested to know that scalable be companies to platform expand some consumers? running And And on how Vans the the for taking make channel I the or then the Okay. on their brands?

David Baszucki

we use print or Hub with Gucci, Nike or some And more with asking Talent image building see or can the partners spot. NFL interaction numbers. Thanks brands, where is of for the with don't Yes. these What find the NFL, is shared come similar or Gucci. ultimately we numbers we Nike is a Vans even video these than possibly think that brands we the to an our I experiences. And community. for connect that. vision they Whether our Vans, fans The shared we immersive have Talent or live amazing connect it's way is numbers of ultimately, XD to -- a our platform, build building to very the Hub experiences to to future help to video.

We working accounts. and brands for to additionally their now are in ways validate artists

know want. we can real the destination if to or their boost traffic that artist they brand so So they internally it's

work highly building complex video performance the and people based make be ultimately experiences. those all phone, just to make a very to that their at our scaled, then more So without for things easier on boost a to easier and on on tablet single facilities akin super these core computer a ways on day, will can and finally, and high own with easily. it technology they experiences more very or to is -- us to can where partnership devices, technology traffic And we're use example, for camera

Operator

BTIG. We'll move next at to Clark Lampen

Clark Lampen

of could quick a was impact about much have help going the that is to and as user that I us grows mix wondering question sort how growth on you have if I localizing guys in Roblox lines? time. over the think growth? native over of that's those I language. developers I'm you cover their and XX% population growth, And kit benefiting software developer things onboarding, has how creation, consumer world's along little velocity the curious a on international think

David Baszucki

over expand and Roblox those hand in our countries, a have The available -- first the be Mike. it and twofold Studio we I'll certain Like language, vision. go traditional want with we clients high-level other we vision, computer a when product, to I'll languages. software product to then multiple and on is any local in to automatically the to a second in any the tablet, Roblox, time thing this one we want But also console, run addition to that same content right how push content at to pushing time. is And languages creator now. that we on makes to content device, continue

in We countries. well to live languages, live addition, Japanese, other safety continue languages that always make Russian bring up to automatically. for of we trust to and ops, example, the add operations happen multiple and as that And in complement

I'll as we increased yes, there's with add same And quality native more our coverage, hopefully, English So exact first languages -- Mike the then we have in let language.

Mike Guthrie

to that specific well. it there does Clark, get or question was as your financial part to a more

Clark Lampen

that and across specific. No, seen it's curious just or a Yes. helpful. happens have is significant I sounds that uptick it you And nothing developer onboarding board, in consumer if it's guess I'm as engagement. guys of kind onboarding there just like the

Mike Guthrie

mean I at right. that's do affinity. look Yes, call we data at we where what look we

which a that language. developer content really for affinity local local content that find extent growing And probably a markets, will means in successful in we there the that those a market. are is receptive in it to So community generally is,

the a community it's ever a true On been content the But have receptive set is world. think universal, are because around hand, really just But things other Localization growing and it healthy global that years will developer tends cool. which popular also -- I is hurts to that just of popular local content us to some help. don't Roblox audience. the some pretty find over

David Baszucki

community. on wrap-up We a final -- the and just developer

see South identify recent There's Korea. Brazil, of Canada, we developers order a United of really coming variety from Roblox Kingdom, on and ranking the In Philippines, organic creators Turkey, States, Germany, have blog around we developers. Mexico, United a post the Russia, We where where world.

Operator

move at we'll Stanley. Next, Morgan to Brian Nowak

Brian Nowak

versus users talk Rather up Could North North declining age the January daily about noise could which America you And sequentially? in group about as this that, sequentially. just were little the of active talk the America of quarter? sequential is than think to versus sort growth North a it looks how bit, America driving not I of comps. you year-on-year, what are the like is quickly down DAUs just seeing December? DAUs throughout talking be one think then given sequential growing about And year-on-year in do rest helpful you It

Mike Guthrie

the it's in decline. DAU quarter, fourth Brian, Yes. have unusual not a to

Just think activity. and and of absolutely up, high-level a of a July, little just November for and and us. this late, bump down, things it's bit little Like back-to-school peak September a August are us October slow things bit August And that QX Halloween. actually for until is September. is then shorter and July pretty month. time pick quiet on a are

-- it for obviously, December, really holiday. and So picks the around up

been has bigger QX QX So not many years. really unusual. It's than in

are DAUs, effect back We've on difficult that is was daily frequency to not history. period our of that off coming incredibly active that everything again, issue, that’s year-over-year. head, The daily in compare down accounts, where this to right? shut never and other users, It's probably people activity a just I The school, back it's is have my because, of just work with anything down. number down it's seen to the top don't like

see QX. in also will But the actually happens JanuaryXX.XX], overall what the comparisons sequential affect in So data. we'll

Brian Nowak

So January still down versus December?

Mike Guthrie

around we’ll end come look and you, to back the the data for going call. the I’m the – before get of I’ll table get and

Operator

go Ross to Brandon We'll next at LightShed.

Brandon Ross

a have few. I

we sort future a the basis, normalized if that to -- Is growth XX%. normalization like approach like noise through you to Should about expect look -- and X-year good DAU that going on as think this try we way basis? is that presented, at is has on a be we U.S. CAGR the forward? growth as COVID First, similar a real number

Mike Guthrie

U.S.? the In

Brandon Ross

In the Yes. U.S.,

Mike Guthrie

defined XX% by What's more know specifically I -- not user older that over base. is going the is happen if the right an don't is going I'm be number few to next number. to years, much

example, we Brian's that know the for back earlier to actually So I and right year-over-year get sequentially, not sense is are XX to now, is XX growth substantial. question, my if strong rates really down

generally, by U.S. few and is expect in grow right now So growth user XX, high and defined user to to there, in huge we're be the that a the those those percentage numbers the I XX primarily market, the look see users, pretty next seeing what older we we will base.If XX very even at and also high and to base of we XX XX growth now. have have UX, are rates X to but population. right years, a

we've So been successful. incredibly

been has in experiences to talks that percentage kinds are when don't and penetrate be that of driven growth we and our to but be users, strategy experiences older foothold. to we leave Those hard -- to market the expectation about Dave aged with Our of obviously, we're getting point we core that The is to penetration a to to where up because users. make will that what age-verified do market, continue will going our focus that have that United such to experiences those we're continuing that have, where continue are And good the is are to market, we drive the by to and boy, growth going market. additional going be States. a percentage things on sure are focus is older be of or

is going we're now, numbers America, States aggressive Asia our growing We're rates. right Now Latin necessary, you that's at the And Europe. also parts right? Pacific, fortunately look being be outside again, of growing if -- of to driven growth just at pretty United

U.S., markets, rest And demographic into it U.S. cut really, the growth while. XX would be be the growth overall, high core slower world we then a of and over And back under I turn growth the the for it So high in to pieces, the up. David. the aging age should core if I'll in quite

David Baszucki

one to want highlight just other. I Yes,

especially I we user a behavior by active behavior weekend a traditional highlight monthly on a were numbers long of those supported believe, time, don't those results, where weekend we behavior. numbers are Roblox, But company, For and those type public. share

behaviour, everyday. Roblox usage are that behaviour, As faster to has DAU we and we working move that, capture is product. right thing on engagement voice, we Mike now frequency the of to in product for product shared And vision communication, DAU addition one of lot note, to spontaneous type the on communication, a

lot we're faster a functionality. a of in things that on on we are functionality, working there product even were that world growing, So DAUs expect that where would grow product MAUs to based

Mike Guthrie

another respond bringing want I last before to question. sorry, then to And question, just Brian's

sequentially in actually -- and in January Brian, So December. pretty over up It's are in a January U.S. DAUs nice bump. Canada are

So to question. your just prior close out

let's sorry, you. -- Brandon, back So to

Brandon Ross

U.S. habit more to from a less to big kind active decline get what in in overall, extrapolating grow despite of markets continuing I picture just in the of moving it's as are saying a question, to Before the DAU established monthly you're been daily users the weekend?

Mike Guthrie

answer Yes, at it's probably have that it. other know and to trend and that us question -- in duplicate your -- not We're difficult we number accounts go we to was back because number. look it's the report for very

So really do I'm good lot me of totally it give that number a to you confident. if not doesn't

tell The MAUs at right you're is -- the be to Brandon, will in of to you at, trying accounts. DAUs when the actually would I get -- we question what look conversion growing. I our conversion of our numbers, is -- think However,

guess As definitely of almost that in my that as I'm quickly they we with positive I or U.S. again, growing that. are head. have growing number accounts, looked users is are, growing is don't my accounts top of But the contracting, still at And older off as the number

because it is complicated, going that's more So it's number should the MAU little But all just go take and up. includes look rate a we but the a counts, we know that the number, the back at. conversion

Everybody good. was down. compared It a that frequency time. It's frequency period broken record. just is There of there. a is locked So a may sound to a like

house were a a leaving still bigger than the And and we're period a of have very hard didn't alternatives. so we lot to very, where really bit then. people quite compare Yet, aren't to it's

So that's right thing working really that the through now. we're

Brandon Ross

you Okay. a does Great. it do ones experimentation why? What about on believe take brands platform. letter for you for that at then as your the succeed most look built the the the and which been you on And learning to have successful And have brand the experiences right in brands Roblox platform, talked experiences lot from now?

Mike Guthrie

I'll of we early, seeing saying, phase. the say love experimentation. equally. and -- love brand we’re I the to don't we start a of I discussion, do marketing all by our I approaches think like to base. Brands Dave early, different mean cool think had its goals of an I [Indiscernible] respond. so really And I let interaction children very is with so user we and it's just experimentation heads different in But I'll think

the So that we testing. fact love are people

-- things the engagement so that, be platform level like anything is versus of else enjoy able the that different our on One of sheer that may to brands

David Baszucki

Yes.

really it's think early. I

in that that advertising mirror future giving I XD. see functionality. market, we on forward-looking can brand, to real any a the one its video just moving things thoughts of large as XD Once size co-experience, human we start the think One start in world. without immersive into and product imagine can imagine such

and through and we items, visiting, those experience that virtually Gucci, that seen And things, some purchasing of interesting so when walk real trading actually world. installation an just is in like we've the is

your taking real clothing, in that the out do world. out, wearing something hanging experience, with Vans' and Nike friends, your we skateboard with that Following

those your friends virtual and and kind football around with interacting NFL playing the all of With things. league of

of We experiences are monetization. are and our they to elegance focused scalability, of the want So all highlight of all experience while that the right the on engagement we now children. long-term self-serve, those the reserving the the

on focused more brands them what a to do heavily. take in monetize growth and are DAU, digital user engagement our them in world. it we're real lot of the to for very world and trying they mirror flexibility creativity optimistic. than we would So with There's But

Operator

to next go Thornton Securities. Truist Matthew We'll at

Matthew Thornton

a are of how someone I'm there the up comparable. thoughts David. maybe commentary the curious, brand's a any on following Shopify first with like just far commerce a on with we guess, kind or being I seeing from Maybe platform step there. enabled partnership

coming the impact DAUs and I the would that that we much you know the question. then -- had the I'm to if comparison idea November sure out outage, U.K. any year-on-year, Secondly, I there. the down think But as they've if always -- demo DAU? to back the historically. there, back in curious have XX been if how just X under if And particularly has kicked off data not the type and Mike, on I'm relatedly vaccination have XX I just because, guess, like year-over-year you sequentially, cohort the obviously, on to really any on

well. curious kind if that's would there coming as of into I'm So play thoughts great. there be Any

David Baszucki

in to do USA numbers, we’re high very with the cultural X on DAU MAU usage, the we XX through well lot watch that I'll highlight MAU well headroom publish the but a of a that it's pretty MAU XX. phenomenon XX ratio. to X USA known as side as XX through We on there's do not

Roblox range a There's DAUs -- things, is as lot future And learning. as a for that's that headroom daily in on headroom so that when we used ratio. wide of play, a look United at the gets Roblox better, utility ratio the of communication, States,

So the that of to doorstep, experiences, although brands, destination we're our areas to there's announce are place in those those their includes and from experience individual to will future of type delivered and immersion obviously, them the also which see to of. There's through experience, not their to to immersive brand native. brand ads items grow. opportunity we’ll that when from buying into how having will be and of of the of is addition shopping, a use instead one partners, that of USA is, includes XD to the XX the vision of to teleports places, note, dynamic people be early try-it-on full continue starting of display There go those going in how user place correctly that can people dynamic signals include a monetization as exploring you -- delaying DAUs someday launch -- getting work. advertising digital advertising front a use X we're On that of

growth the So got $X we've safe a amazing DAU gentle a focused monetization platform and front user of right the doesn't with civil engagement now are the billion of lot hiring on primarily highlight lot is long our we of and Mike, that for right growth of whatever but in users number, the engineers or get on here bank. term. in opportunity quality increased cash We're

Mike Guthrie

go second what DAU, Matt, your didn't it and I Canada break of was about And question, up and sorry, to U.S. back just that, -- Yes. track. something you

Matthew Thornton

Yes.

I guess I year-on-year, always outage kicked there. the you I in they're X Sorry, demo, what XX down obviously, you able off the just then are relatedly, And really about quantify had? vaccinations if to to guess just know early sequentially, impact Mike. think but November

any you that go that if kind curious 'XX? I'm to be of into having kind we So could to as data and maybe of impact have what talk in in XQ cohort

Mike Guthrie

is know. and on tell basis, global Yes. I to it's falling it's -- Yes. I second, quickly the UX can that a on you don't cohort What growing X

little of basis a global , growth average on UX DAU. about just now underneath just a rate it. at So the is right It's

our days the front going to is we U.S. you with of it about in specifically, November asked that about release, still it bit a -- of don't actually detail. have X But outage, and growing we I'm timing. not not I'm in level get talked talked UX So the I me. little quickly. sure. to

good pretty it. I think we of a job did estimating

at So back a I'll and go Yes. that. take look

of in overall less X in data Okay. don't I to I XX, me, don't UXX is January But and versus penetrated front the over The is UX XX. have have fact know I for than to certainly but a sequentially. UX growing December, year-over-year X

Operator

[Operator We'll to McTernan Instructions] & Bernie next go Needham Company. with

Bernie McTernan

I Mike, weekdays. I -- wondering the breakdown and was between appreciate weekends

number bookings? what really I in at either possible to give think for grew that's Is January helpful. or weekends XQ it a for

Mike Guthrie

going you asking. thank But Speakers] for to that. get not. is There [Multiple just into not I'm

Bernie McTernan

Exactly, what’s that -- on number the

Mike Guthrie

Yes, go ahead.

Bernie McTernan

for, What's though, focus to the to keep low guys brands you friction is? know on understand want to time to the monetization looking when really And Yes. right the you the signal I are on for experiment platform.

Mike Guthrie

to With turn is time right brands on monetization? what the

Bernie McTernan

Yes.

Mike Guthrie

we overview, you the It's now, more experiences. great of started XX about higher subjective. off we successful incredibly this give and beginning talk year, I'll then at let rate. a I'll In year, Dave quick Right a last had brand it.

number watch metric can that think then I the the sheer looking how they at for do those so as value start XXXX we think do get, they're we with something having is and and just what experimenting. And they discussions. it that the the I platform us brands of and that great they do

few at recent look They excited are to would building And they're lot doing real to the last other opportunity. developers, think think them of The creations require it I've about community. part to our of in of They're very that conversations I really and really are a developer businesses. business otherwise, gaming getting just the platform, down it of experiences and people. would be sophisticated a be are friction, is economics hiring excited really of that building I with The very, not great a the sophisticated. months which they're built on that weeks negotiations do opportunity. community. pairing the These their experiences. and Many they're had by They're add brand long slow mistake. of brand it. what developers about really some hiring

And so cut we that organically off really slow grow to it down. to rather want than and let that try

David Baszucki

see, you on chiming what functionality brands without Yes. and in that platform giving supports And both developers. again that then our a is this date, is once on any Dave might

VC-backed seeing as risk in want bring their more we're these people other developers, to and markets, initially developers, bigger more just to developers, they For boost do a as of experience themselves. they taking they and developers as many and test, grow

so our platform. And primitive on have we a system

in much that, essentially of spot refining are concept brand they to they of bring a this immersive that That to We in video, boosting make so in sure paying similar where more their, to very on people TV want their way destination experience. is traditional XD to case, eyeballs really number sophisticated. a is the get certain in the a and but future a in nice

their -- whatever, whether type see to have predictively and once they X XXX,XXX for again, If way number exposure. it's million on wants for brands. experience to you will brand ways a example, some a have guarantee a working do point right come I'm So that in not week, people us bring sure or and is, to what can that the at of

Operator

We'll go next to Drew Crum at Stifel.

Drew Crum

larger metaverse. intent around develop an or a Several ambitions entities have expressed to

your reflect retain recruit you ability competitive And would last anticipate Roblox, way for on created year, this challenges in you As push this find and to any intellectual including in you any that XXXX? capital? changing did

David Baszucki

this. for through the XX products I'll doing actually has The We've in has this been comment XX for from initial and consistent mention concept been in years, through XXXXs Roblox. Snow years. early metaverse this some on Crash the been Yes. around

a show and absolutely UGC on side have things really innovation. us, of to on as going and platform, company bunch X based really friction here. a to foundational foundation vision being on we a and grow cool we're We've our -- XXX% are of seen We recruiting safety stability that where including continue the

Operator

Dessouky And next, of move Bank to Omar America. we'll at

Omar Dessouky

me? hear you Can

Mike Guthrie

Yes, we can.

Omar Dessouky

Okay.

technologies faces You map as in your technology? of spatial of think map a and improvement clothing, your how such that you presented continuous about the XD-layered also, respect? would change Day road Avatar your release and 'XX And Which acquired heads, the of example. a facial feature Investor step voice, road at expressions, in feature consider the platform UGC, Guilded bodies versus including improvement in compelling human you first for and for November, half would

David Baszucki

Yes.

time, on I types map see that. with gave about On to I I our can acquisitions. clothing presented I same couple wide think for a So and at we don't dates And layered Day. really our road the any at think live a and audio, we're spatial the We Investor highlights. that. shift of excited of give X UGC -- But never tend -- make are pipeline. optimistic bodies we I'm would we wouldn't really anything. where in shift are they and acquisitions, dates the

bringing do other the wonderful would area. call We well-known parallel between for board with Guilded, our Loom.ai, around platforms of communication in that the platforms, fields, social mentioned, for call on people are XD have And you category. with Bash. would or of We some believe whether experts an what platform. this platform in Roblox we social expertise who others immersive case is I other types several connection these are Avatar on it's co-experience people the a there's that there's certain as traditionally then as interoperability and opportunities this types in of

doing So can we into with as make look a will X we're that things communication do is of types available these And Guilded using the way those social other platforms. the to connect platforms openly. way to of when that, we

Operator

to turn And the in over the we questions. no Anna the questions conference further web have I'll for queue. phone

Anna Yen

Great.

got I one more Andrew you or to from for Dave Canada? Mike, users and versus discuss from can think international repeat by time we've versus new spending trends U.S. Uerkwitz Jefferies. relative

Mike Guthrie

Sorry, spending trends?

Anna Yen

Yes.

Mike Guthrie

So you’re versus users -- new saying for

Anna Yen

Versus international.

Canada. New users versus repeat, international versus U.S.

Mike Guthrie

low Yes. to, of monetization. their Payers end always new and payment to tend tend increase the over of time, payers on be rates

to periods come pretty really as as payers, in new a a for consistently low add Returning are They predictable grow very to payers they tend long of cohort. tend grow time. we over time as So and cohort.

for capita. International high true we monetization payers continuing much platform. are it So dilutive been really the the are to tracks of payers very payer GDP the overall to we monetization, forever on retention that per And it's existing new have add.

at spending look and look effects You very, countries the will the very similar. wealth of

and as around if X countries, per have the of world. a at and you'll probably monetization U.S. where GDP So good the capita you a sense unit in the of other is pretty look took

Anna Yen

wraps I it us. for up Audra, that Great. think

Operator

Thank Thank you. that does participation. And for conclude conference. your today's you

disconnect. now may You

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