Roblox CEO on says many games now top 10 million daily active users

Key Takeaways

these viral experiences, grow a garden for example, how much are they contributing to this growth? >> Hey, great to be here. And we have created in essential really the conditions to grow a garden in this case growing amazing creative new experiences on Roblox. In addition to grow a garden uh which is a cultural meme right now, there's five experiences on Roblox with more than 10 million daily active users. And I want to highlight in addition to that great growth we saw, we saw 13 and up users grow daily active users 64% yearonear. We have a vision of 10% of the global gaming content market running on our platform and this really explosion of great new hits. It it supports that thesis. I also want to highlight even without Grow a Garden, we would have reported an amazing Q2 with great year-on-year growth rates. >> Brook Haven's there, Grower Gardens there. Just delve into these hits that you have. How much revenue do they sort of supply to you? Can you break it out on an individual win basis? >> Well, well, I I want to highlight these hits um a lot of them have been created in the last year. In fact, four of the top five experiences were created in the last year. Part of our vision is there's enormous headroom to innovate in the gaming space around how games are created, how people consume them, how they're social, all of this. And we believe this innovation is driving the ability for creators to make awesome new experiences on the platform. You know, we're we're starting to see some of these hits go global. want to highlight. For example, AP pack DAUs grew over 76% yearonear and and we're still have a lot of headroom. We're we're only about 3% of the global gaming market running on our platform and our vision is to get to 10%. >> Dave, I've been able to get with with your team and talk a little bit in recent months about advertising. And one of the things I think people don't necessarily understand about Roblox is advertising is a revenue stream for you, but also for the devs, the the creators themselves. But I think I'm right in saying you've never really given us a dollar figure on how it's going. Would you just update us on on the ecosystem and and the wins that you see for Roblox? We >> we do think there's a significant advertising opportunity on the platform. And you're exactly right. All of this growth we've been sharing, you know, bookings growth of north of 50% in Q2 was driven not by advertising, but by people spending Robux on the platform. That said, there's several categories of experiences and creators that advertising may be the best way for them to make future revenue. highlighting typically our vision is advertising for older users, not for younger users because we're already so healthy monetarily there and we have launched video advertising on the platform. We just in the last week opened it up for more creators. I will assure you if and when we hit 10% of the global gaming market space that advertising will be a key part of that top bookings line. I I kind of want to stick with the creators because I I'm trying always to understand the ecosystem. So, one thing that you've done is help creators get licensing deals. They might create a game. That game might be franchiseable. Why why do that? But also like are you kind of taking the liability on copyright and on legal and uh and everything else that comes with a deal like that? >> We we aren't really. And what we've seen, you know, two years ago, people might have thought, well, you're not going to have any prime sports brands on your platform. And then all of a sudden, we have, you know, NFL Universe, a partnership between the NFL and an existing uh developer on the platform be extremely successful. What we've started talking about with our IP platform is the ability for great brands whether it's uh for example Stranger Things or Squid Game from Netflix being available for creators on the platform who want to integrate the the brand and and really create a win-win in that these brands can have a lot of people interacting with them. It can it can drive engagement within them. So there's a lot of opportunity in the future to connect great brands, great IP with the creative energy of the developers on our platform. >> I like that win-win idea and the revenue share that goes to the developers. Also, what's interesting is developers are buying from these one-off makers, say like grow a garden, I think it's a teen who still owns about half, but he sold off the other half of his business over to New Zealand Splitting Point Studio. Are you helping facilitate that, M&A? How do you see your role there? uh we we would like to more and more make a very liquid market there. And at our Roblox developer conference a couple years ago, I shared that as we have a larger proportion of the gaming market running on Roblox, it's not inconceivable that there will be a billiondoll studio on the platform. We're well into the nine figures, hundreds of millions of dollar type studios. And Grow a Garden was a great example of an initial small team working with Jandelle who acquired part of it. Um, and it was a deal that was a win-win deal. The original creators did very well and Grow a Garden has been refined and tuned into now the largest simultaneously played game in the history of the Guinness Book of World Records, going over 20 million concurrent players. Uh a few weeks ago, >> Dave, about three weeks ago, you came onto the program and discussed with me generative AI video-based age verification. In the interim on July 25th, we got the online safety act and which will will have an impact on you. Could you just quantify how that those parameters might impact uh active users or engagement? Just quickly, >> I I want to highlight we have always had safety as one of our top priorities and we're not waiting for the law or legislation. We've innovated with age estimation on our own because we want to keep people on our platform. Roblox is a place where uh we filter all the text and the voice where we monitor for critical harms where there's no image sharing or any of the things that might happen from that. So age estimation, we took leadership here in innovating and we think it's going to set the standard for the the industry.