Roblox: The Path To Profitability
From today's $RBLX update:

"In my opinion, there’s another relevant consideration for Roblox: as a public company, it’s difficult for management to be completely unbothered by Mr. Market’s short-term scorecard. (The stock price is still down ~70% from the November 2021 highs.) To me, the Q4 FY22 results suggest management is cognizant of that fact (it also helps to have bookings growth reaccelerate, as they did in the back half of 2022). The company is taking action to ensure its financials / profitability do not become completely untethered from the underlying strength of the platform KPI’s for an extended period of time. One might quibble with that decision: in theory, management’s sole focus should be maximizing the long-term value of the business, no matter its impact on short-term results. I can appreciate that perspective. That said, I’m less of a purist than I once was: my personal view is that management deserves some credit for adjusting to the realities / worries expressed by Mr. Market. (And importantly, I do not think these changes will materially impact the company’s ability to deliver against its long-term opportunities.)"

Devin LaSarre's avatar
Not my wheelhouse at all, but a company I find fascinating. I spent a good amount of my childhood creating with legos. RBXX is the digital version - on turbo mode. Seeing friend's and family's children - all seem to be glued to tablets playing on this platform.
Nathan Worden's avatar
The quote about Robolox wanting to get to a billion daily active users some day is interesting— and the fact that Xbox Live has ~120 million monthly active users now, shows how ambitious Roblox is.
Brett Schafer's avatar
It does seem like if they get to a large enough scale they will have a competitive advantage with creators similar to YouTube



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