Roblox Losses Reach Nearly $1 Billion In 2022 Despite User Growth
With 56 Million users, you'd think Roblox would be rolling in profits.
In 2022 Roblox reported its daily active users to be 56 million, representing a 19% increase year over year, but that hasn't stopped the company from reporting losses of $934 million in 2022, compared to $504 million in 2021. Revenue was up 16% year-on-year at $2.2 billion for 2022, while bookings were up 5% at $2.9 billion.
According to Games Industry Biz, the company attributed its losses to higher expenses in supporting the expansion of business operations and deferring a "significant amount of revenue" to later periods, changing how much bookings could be recognized as earning in each quarter.
This doesn't seem to come as a surprise to Roblox, who foresee net losses throughout the immediate future.
"Regardless, since our investment decisions are generally based on levels of bookings, we expect to continue to report net losses for the foreseeable future even as we anticipate generating net cash from operating activities," the report added.
Roblox did state that it will no longer be reporting monthly financial reports in favor of quarterly reports beginning in March due to the volatile nature of its monthly earnings.
About the Author
Troy “Noobfridge” Blackburn has been reporting on the video game industry for over a decade. Whether it’s news, editorials, gameplay videos, or streams, Noobfridge never fails to present his honest opinion whether those hot takes prove to be popular or not.
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