Roblox reveals its financial statements for the year 2022, showing a net loss of hundreds of millions!
Roblox lost nearly $900 million in 2022, according to the company’s most recent earnings report, even though its average number of daily active users increased from the previous year. Roblox’s popularity has skyrocketed in recent years, especially since the social gaming platform became available on Android and iOS and then went public.
An intriguing picture of the company’s performance over the past year can be gleaned from its most recent financial report.
Investments or net loss?
The numerous partnerships Roblox has formed with brands like Chipotle and Sonic the Hedgehog, which allow Gamefam to provide a wide variety of gaming experiences on the platform, have undoubtedly contributed to the company’s meteoric rise in popularity. The corporation is investing heavily in new technology and infrastructure to keep up with its rising profile.
Examples of patents filed by the platform include one for a system to recommend age-appropriate Roblox content and another for a tool that allows developers to use texture manipulation to implement sophisticated face animations.
These far-off investments now appear to be showing up in the company’s most recent financial results.
Roblox Records 2022 Financial Statements
Roblox lost $291.5 million during the fourth quarter of 2022, according to the company’s financial report. This is on the heels of a $300 million loss in the third quarter.
For the fiscal year ending in 2022, its net losses amounted to $934.14. The company increased its Q1 2022 and Q3 2022 user life estimates to 25 and 28 months, respectively.
Revenue for 2022 is down $344.9 million as a result of the deferred revenue and deferred cost of revenue balances. Roblox has previously stated that its long-term investments that do not meet GAAP standards are to blame for these unfavorable results.
Despite the fact that Roblox will be losing money in 2022, the platform will continue to grow significantly over the same time frame. According to financial statements, the number of average daily users for the company in 2022 was 56 million, representing a year-over-year growth rate of 23 percent.
The number of “hours engaged” also increased steadily, reaching 49.3 billion hours, a 19% year-over-year increase. “2022 was a year of innovation and creativity for Roblox,” said the company’s CEO, David Baszucki, and “growth was high across all geographies and age groups,” said the CFO.
Other general news from Roblox
Roblox, interestingly, also notes that after the March 2023 data are released in April, it would no longer provide monthly important indicators.
According to the corporation, “short-term market reactions” are more common when analyzing monthly rather than quarterly results.
Fans and investors may find it reassuring that Roblox plans to grow its presence even more in the coming months, despite the fact that the company has stopped releasing monthly statistics.
You can see for yourself the hundreds of Roblox codes that you can use in-game.