Roblox makes most of its money by selling its virtual currency, Robux, which players use to buy items like virtual clothing, game passes, avatar upgrades, and other audio/visual content. This is noteworthy because of Roblox's business model. The 14.5 billion hours users spent on the platform in Q1 is over 1.6 billion hours more than the previous quarter. This spark in DAUs came with a noticeable increase in hours spent on the platform. that's also almost 40 million more than the company had three years ago.

This was an encouraging sign considering its DAUs were essentially flat from the third quarter to the fourth quarter of 2022. Roblox had around 66.1 million daily active users (DAUs) in Q1, a 22.2% year-over-year increase. Profitability is on the way it's just not a priority for Roblox right now.ĭespite how you feel about Roblox's financials, it's hard to argue against a lot of its key user metrics. At this stage, cash flow gives better insight into how sustainable the company's operations are, and the figure came in better than expected. In Q1, Roblox spent over $275 million on research and development, around $98 million more than it spent in the year-ago quarter.Ī more important (and impressive) figure right now is Roblox's nearly $174 million in cash flow from its operations.

Although the company has yet to hit profitability, that's to be expected at this stage of growth.

In the first quarter of 2023, Roblox brought in $655 million in revenue, up 22% year over year.

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