Roblox Earnings Call

Their user base and hours engaged are still growing. But their cash flows are not going anywhere, and their COGS and SBC and Developer Exchange Fees continues to go up faster than their revenue and cash growth so this is becoming a loss-making metaverse story that the market dislikes in the current macro environment.

Their stock-based compensation is growing at such a rapid pace that the chart literally looks like a stock market breakout to me. It also seemed being an employee rather than a shareholder is a better idea at the moment. It is evident that their shareholders will continue to suffer in the current and upcoming quarters.

Layoffs might be a good thing for their shareholders.

$rblx

Source:

• https://ir.roblox.com/financials/quarterly-results/default.aspx
• https://s27.q4cdn.com/984876518/files/doc_financials/2023/q2/SH-Letter-Q2-23-08-09-23.pdf
• https://s27.q4cdn.com/984876518/files/doc_financials/2023/q2/RBLX-Q2-2023-08-09.pdf