Roblox - Earnings Call - Q2 2025

Executive Summary

• Q2 2025 showed strong platform momentum: Bookings $1.44B (+51% YoY), DAUs 111.8M (+41% YoY), Hours 27.4B (+58% YoY), and record 23.4M average monthly unique payers; ABPDAU rose to $12.86 (+7% YoY).
• GAAP revenue was $1.08B and diluted EPS was $(0.41); revenue and EPS missed S&P Global consensus (Revenue $1.27B*, EPS $(0.383)*), while management emphasized bookings and cash flow as primary value drivers.
• FY25 guidance raised: Revenue $4.39–$4.49B, Bookings $5.87–$5.97B, Operating Cash Flow $1.335–$1.395B, FCF $1.025–$1.085B; net loss widened and Adjusted EBITDA guided to $(5)–$55M due to revenue deferrals and immediate OpEx recognition.
• Catalyst: outsized growth from viral hits (e.g., “Grow a Garden”) and broad-based ecosystem strength, plus raised bookings/FCF outlook; watch near-term profitability (higher DevEx, cloud costs) and management’s conservative H2 assumptions.

What Went Well and What Went Wrong

What Went Well

• Platform scale and monetization: Bookings $1.44B (+51% YoY), DAUs 111.8M (+41% YoY), Hours 27.4B (+58% YoY), ABPDAU $12.86 (+7% YoY). CEO: “broad-based strength across the Roblox platform, fueled by the emergence of several viral experiences”.
• User and payer metrics: Average monthly unique payers hit a new all-time record of 23.4M (+42% YoY); ABPMUP $20.48; 13+ DAUs up 54% and 13+ Hours up 72% YoY; 13+ now 64% of DAUs and 66% of Hours.
• Guidance raised meaningfully: FY25 bookings raised to $5.87–$5.97B (from $5.285–$5.36B in Q1); FY25 OCF raised to $1.335–$1.395B and FCF to $1.025–$1.085B.

Selected quotes:

• “Our Q2 2025 results demonstrate broad-based strength… We are encouraged by the momentum across Roblox as we look to capture 10% of the global gaming content market” — CEO David Baszucki.
• “This exceptional topline growth, coupled with improving margins, excellent cash flow generation, and our strong balance sheet, positions us to continue investing in long-term, durable growth” — CFO Naveen Chopra.
• “More than 75% of Grow a Garden’s DAUs engaged with at least one additional experience on the day they played” — reinforcing ecosystem spillovers.

What Went Wrong

• Profitability pressure: Net loss widened to $(279.8)M (vs. $(207.2)M LY) and Adjusted EBITDA fell to $18.4M (vs. $66.5M LY) as OpEx (developer exchange, infra, personnel) outpaced recognized revenue under GAAP deferrals.
• Cost intensity: Certain infrastructure and trust & safety expenses rose to $152.6M (+25% YoY; +14% QoQ) and developer exchange fees to $316.4M (+52% YoY), reflecting higher engagement and creator economics.
• Near-term guidance signals negative EBITDA in Q3: Q3 Adjusted EBITDA guided to $(58)–$(28)M, with management embedding conservatism around viral normalization and Q4 visibility.

Transcript

Operator (participant)

Good morning. My name is Rebecca, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Roblox Q2 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to Stefanie Notaney. You may now begin your conference.

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

Thank you, Rebecca. Good morning, everyone. Thank you for joining our Q&A session to discuss Roblox's Q2 2025 results. With me today is Roblox co-founder and CEO David Baszucki and our Chief Financial Officer, Naveen Chopra. Our shareholder letter, press release, SEC filings, supplemental slides, and a replay of today's call can be found on our investor relations website. Our commentary today may include forward-looking statements, which are subject to risk, uncertainties, and assumptions that could cause actual results to differ materially from those described in our forward-looking statements. A description of these risks, uncertainties, and assumptions is included in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q. We should not rely on our forward-looking statements as predictions of future events. We disclaim any obligation to update these statements except as required by law.

During this call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics can be found in our press release and supplemental slides. With that, I'll turn the call over to Dave.

David Baszuki (CEO and Co-founder)

Thank you. Good morning, everyone, and thank you for joining us today. I'm sitting here side by side with our new CFO. Welcome, Naveen. It's great to have you here. I would like to just do a shout-out and thank you to Mike Guthrie for such an incredible tenure at Roblox. We wish you all the best. Naveen, we're really excited for you to be in the seat here. I think everyone's going to see how quickly, why we picked you. Welcome. Let's get started. Eighteen months ago, we shared with everyone a focus on perf and quality, discovery, economy, and live ops, and shared the notion of creating the conditions for growth powered by our creator community. Fast forward to today, and our community has produced solid growth in Q2, several viral hits, great velocity on new content.

Metaphorically, just as we created really the conditions for growth, Grow a Garden, also very similar metaphorically, and creating conditions for growth has set all-time records. It's an elegant metaphor, just as we have. We're going to continue on this focus of targeting 10% of the global gaming content market on the platform with some great results we'd like to share with you. In Q2 2025, we had revenue of $1.1 billion. This was up 21% year-on-year. Our Q2 bookings were $1.4 billion, up 51% year-on-year. Bookings growth was strong across all regions. The U.S. and Canada saw bookings growth of 43%. APAC grew 75%, driven by strength in strategic markets across the region. Here are some notable callouts on year-on-year Q2 bookings growth: Japan over 50%, India over 90%, Philippines approximately 100%, Korea over 120%, Indonesia over 150% year-on-year. Our Q2 DAUs were 111.8 million, up 41% year-on-year.

Once again, growth across all regions. The U.S. and Canada DAUs grew 21%. APAC grew 76%. On the age demographics, over 13 DAUs grew 54% year-on-year. Over 64% of our DAUs total are now over 13. On hours engaged in Q2, we had 27.4 billion hours, up 58% year-on-year. Similar trends to DAUs. The U.S. and Canada grew 35%. APAC 95%. Some callouts: Japan, hourly year-on-year quarter growth 61% year-on-year. Indonesia, 170% year-on-year. Strong growth over 13 with 72% year-on-year. Over 66% of total hours are in users 13 or over. Monthly unique payers in Q2 were 23.4 million, up 42%. This is a new all-time record. We also had a record number of new monthly unique payers of 4.6 million. At the same time, this drove higher average bookings per monthly unique payer, up 6%. In Q2, DevEx was $316.4 million.

This was up 52% year-over-year, a new all-time record, nearly double the amount of DevEx from the same period two years ago. Our strength in Q2 was broad-based across the platform. We do want to share the breadth of new viral hits that have showed up on the platform. Into July, we currently have five experiences with over 10 million daily active users, including hits such as "Grow a Garden," "Steal a Brainrot," "Brookhaven," "99 Nights in the Forest," and "Ink Game." Four out of five of these experiences have been launched in the last 12 months. As a result of this, we raised our fiscal year 2025 guidance. You'll hear more about that from Naveen as we progress to our goal of capturing 10% of the global gaming content market on our platform. Really, the scale and the speed of the creator success on our platform isn't an accident.

We've been creating these conditions for viral content. Once again, let's reiterate the investments we're making in platform performance, discovery, our economy. Among other things, we now have a large audience, over 111 million DAUs of all ages, genders, and geographies. This audience is growing faster than the industry as a whole. We've put enormous emphasis on our global infrastructure and network, both its scalability, its reliability, its performance, and our ability to run this global infrastructure efficiently. We continue to work on personalization and discovery, making them more transparent and really making them better at connecting new content with our individual users and promoting long-term ecosystem health. I want to highlight in search and discovery that we focus on long-term health, not short-term health, in how we connect people on our platform with content. Finally, our economy, which we're really building to help creators thrive and earn.

For example, in the last 12 months, 18 creators earned over $10 million on the platform. There's a lot of momentum in new content in our ecosystem for really up and down the size of creators. I want to highlight a couple of the viral hits that we believe are having positive effects through the rest of the ecosystem. For example, in Q2 2025, more than 75% of "Grow a Garden's" DAUs engaged with at least one other additional experience on the same day they played. This highlights a healthy interconnected nature of our platform. We've seen that even when excluding the big success of "Grow a Garden," our in-experience spending across the platform grew 36% year over year. It highlights the real depth and robustness of the content on the platform. I want to highlight some momentum we've been building for the future.

In September, we're going to be hosting our RDC Annual Developer Conference, and we'll be showcasing a wide range of technology and innovation that we believe will enable us to build on this momentum. I want to highlight a few of the innovations we mentioned in our letter. On our safety platform, we continue to innovate and set the standard of what we believe is the future of safety for people of all ages on platforms. In July, we introduced trusted connections and age estimation on the platform. We expanded privacy tools and screen time management. We introduced Rogard 1.0, an open-source safety toolkit to help put guardrails around large language models as we make these available within live experiences on Roblox. Our vision, really from day one, has been to be the leader in online safety. More to come here. Expect us to keep innovating in this space.

Our IP license manager and catalog was launched in July. We have partners including Lionsgate, Netflix, Sega, and Kodansha. This is really a market connecting creators on the platform with great IP holders and really systematizing the licensing and the connection of this. We think this is the future of how our large creator platform can connect with great IP. On our brand and ads group, we've integrated our rewarded video with Google efforts, and we're in beta now. We're seeing strong interest, and we just expanded the eligibility of who can access this beta. Some really cool activations that we've seen on the platform: "Grow a Garden" integrated and was live last weekend with Travis, and Travis Kelce participated with the creator in a Q&A live within the game on Saturday morning.

FIFA partnered with one of our most popular soccer games, Super League Soccer, and Google just wrapped another campaign. It's the third activation in under a year with Google Play, being really the most recent with more to come. We just released the next iteration of our Cube 3D generational foundational model, once again highlighting Cube 3D is live now within live Roblox experiences. We've made significant improvements in accelerating the inference for our 3D generation. We've had over a million 3D models generated, not just in Studio, but within games themselves, highlighting really providing this infrastructure for what we believe will be a future aspect of games, which is really AI on demand, whether it's 3D generation or text generation. On our genre expansion efforts, we've had early traction in some of the target genres we've shared with you: RPG, sports, racing, and battle shooter games.

We expect Robux spending in these target genres. It actually grew 66% from Q2 2024 to Q2 2025. We'll continue to focus on these key genres, and we'll discuss more about the technology and the roadmap to make progress here. One final thing. In our press release, we shared that Manuel Bronstein has decided to move on from Roblox. I just want to share that Manuel's been at Roblox for more than four years, and he's been a key part of our growth and maturation. He's helped us build incredible teams across product and partnerships. He plans to take a break before pursuing personal and entrepreneurial activities, but he'll stay with us through the end of September. On behalf of everyone at Roblox, Manuel, we want to thank you for your lasting contribution. With that, I'm going to turn it over to Naveen. Thank you, Dave.

Naveen Chopra (CFO)

It's awesome to be here. I also want to echo your thanks to Mike, who has spent a lot of time helping me get up to speed, and I'm very grateful for the world-class team that he has built. I'm very much looking forward to working with everyone here at Roblox. Before we take questions, I thought I would just share some quick thoughts on what attracted me to Roblox and then add some color both on the Q2 results and on our guidance for the balance of the year. I came to Roblox not just because of the amazing business that exists today, but really because of where I think it can go in the future. Today, I think, as most of you know, Roblox is a highly scaled consumer platform with massive engagement and what I think of as an enviable financial model.

We're talking 110 million DAUs with engagement and bookings that have grown at strong double-digit growth rates over the past two years. Over that same period of time, the business has generated almost $1.4 billion of free cash flow and now has a balance sheet with close to $4 billion of net liquidity. I particularly love the fact that it's a team that embraces a long-term orientation and intentionally chooses to tackle really hard problems. Now, looking forward, I believe that Roblox can use those assets to capitalize on multiple tailwinds. That includes tailwinds from inertia in the UGC creator economy, which pervades social, video, and now gaming. Tailwinds from AI, which will accelerate Roblox platform development, reduce friction for our creators, and enhance our economy. Tailwinds from what I describe as market headroom.

Despite tremendous growth to date, we're really just scratching the surface of a very large and lucrative gaming market. Tailwinds from financial scale. There is opportunity for incremental operating leverage and cash flow generation. As that expands, the company will have the ability to pursue multiple paths to growth and shareholder value creation. Now let's touch on our reported results and our guidance. First, with respect to Q2. The main thing I want to emphasize, above and beyond what Dave has noted and what you read in our letter, is the performance of non-top 10 experiences, i.e., the Roblox platform at large. Let me share some stats on that. First, engagement. For experiences ranked number 11 and below, growth of inexperienced hours was 47% year on year. That engagement is also powering broad-based spending growth. In fact, more than half the growth in experience spend came from non-top 10 titles.

That, in turn, translates to significant earnings for creators of all sizes. Over the last 12 months, our top 1,000 creators averaged nearly $1 million in Roblox earnings. The top 10,000 creators averaged more than $110,000. I note all this because I think it's really important to understand that our growth is a function of both viral hits and broader ecosystem growth. All right, let's look at the rest of the year. As you've hopefully read, we have significantly raised our full year 2025 revenue and bookings guidance. Revenue guidance is now 22% to 25% year on year. Our bookings guidance calls for year-over-year growth of 34% to 37%. At the high end, that's a bookings increase of $610 million, or more than 11% to our prior annual guidance, most of which is still to be delivered in the second half of the year.

In terms of how this flows to individual quarters, I want to note a couple of things. First, although momentum has continued in July, for guidance purposes, we conservatively assume that engagement and spending in recent viral hits will move toward underlying growth trends during Q3. Second, we note the fact that year-over-year growth rates will face tougher comps in August and September, as prior viral hits were at their peak during those months in 2024. If you look at Q4, we believe that some additional conservatism is warranted. To be clear, everything we're seeing is positive and healthy, but it's just too early to extrapolate Q2's extraordinary trends over a prolonged period of time. Additionally, our Q4 forecast does have some heightened uncertainty given the significant portion of Q4 bookings that we typically capture in the final days and weeks of the period.

Zooming out, what we're seeing in 2025, i.e., 34% to 37% full-year bookings growth, makes us more confident than ever that Roblox is positioned to capture 10% of the $180 billion global gaming content market. I am incredibly excited to be on this journey as we build one of the great global consumer internet platforms. With that, let's open up the call for questions.

Operator (participant)

Thank you. Again, I would like to remind everyone, in order to ask a question, press Star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Jason Bazinet with Citi.

Jason Bazinet (Analyst)

Thanks. I just had one quick question.

I would appreciate it maybe if you could just give us a little color about how much capacity the system has to sort of absorb the surge in demand that we've seen, because I know you guys are very focused on the long term. A couple of years back, I think you sort of increased your CapEx to increase the capacity and resiliency of the platform. Can you just give a little bit of color on how you're thinking about sort of the CapEx and the platform itself?

Naveen Chopra (CFO)

A great question. I want to highlight we are pushing numbers above 30 million concurrent players at the same time, and Grow a Garden in the past few weeks has gone over 20 million concurrents. Prior to that, I believe in the Guinness Book of World Records, the peak concurrent of any game was in the 14 to 15 million.

We're pushing some really big numbers. Behind the scenes, the optimal mix for spending is both our bare metal infrastructure with burst mode into cloud providers. What you're seeing now behind the scenes is somewhat of a really great mix where for four to eight hours, we spin up a bunch of cloud servers and mix it with the constant bare metal of our own infrastructure. That's worked really well and allowed us to absorb this without paying the CapEx seven days a week, 24/7, to handle that type of a load.

Jason Bazinet (Analyst)

That's super helpful. Thank you.

Operator (participant)

Next, we'll move to Clark Lampin with PTIG.

Clark Lampin (Analyst)

Thanks for taking the questions. Before I start, congrats on what are objectively some very impressive results.

I think maybe, Dave, if we take a step back from the print and we think about the ecosystem implications here, it's hard for me to imagine that, I guess, professional developers aren't taking note of the changes to the platform, the earnings opportunity, and with more of that being spread to non-top 10 developers, as Naveen noted. You're also reducing friction with onboarding and creation. How does this, I guess, recognizing that you don't have a great deal of visibility beyond the next sort of two quarters, how does this maybe not translate to a faster run rate of growth for Roblox in sort of 2026 and beyond? I think we've seen the proof points for how developer investment and sort of the discovery engine translates to bookings growth. I'm wondering where there could be sort of incremental friction here.

David Baszuki (CEO and Co-founder)

I want to highlight we're on the track that we started really annotating six quarters ago, which is raw perf-scale tech, discovery economy, live ops. We still believe we have a lot of technology in the pipeline to fully realize our vision of what it's going to take. There is still a range of experiences that we think we're going to accelerate on top of that. We're not really done with the tech.

The vision on Roblox is ultimately to support a single build from a creator that runs in any language on any device and scales all the way from a low-end 2-gigabyte Android phone, maybe in a difficult networking environment, all the way to an experience that looks great on a gaming PC and starts to go higher in RES, maybe with avatars that are avatars that don't look like Roblox avatars and look like a wide range of that. We're not quite there yet. We do want to focus on that technology. We think over time that's going to accelerate the genre expansion that we're talking about. Our economy keeps getting better with more optimization. Dynamic pricing and regionalized dynamic pricing, more developers are adopting that. We're going to see improvements there. I think there's still a lot of tech in the hopper, really, to help drive this.

Jason Bazinet (Analyst)

Thank you.

Operator (participant)

We'll move next to Benjamin Black with Deutsche Bank.

Benjamin Black (Co-Head Internet Equity Research)

Great. Thanks for taking my question. Maybe a follow-up to Clark, just honing in on the developer side of the equations. Are experiences like Grow a Garden serving as a sort of a promotional launchpad for new or prospective developers? Could you just give us an update on developer growth and what you're hearing from the community? I just want to look past Grow a Garden a little bit and hone in on the other experiences that are gaining real traction. Could you maybe talk about why you're seeing such a high rotation in the top 10 experiences? Is it search and discovery? Is it sort of the halo effect from Grow a Garden? Is it something else? Maybe talk about the durability of some of those dynamics. Thank you.

David Baszuki (CEO and Co-founder)

I do feel the word is out in that most creators in the gaming space, when one experience goes over 20 million concurrents, they take note of that. I do think the word is out. I want to highlight Grow a Garden shows that when the conditions are right for growth, metaphorically, Grow a Garden is that. We see interesting things. In this case, Grow a Garden is somewhat unique in that they recognized asynchronous play and having things happen when you're not necessarily playing, like a garden keeps growing, contributed to that. I think there's a lot of opportunity for new types of experiences on the platform as we make AI available, both 3D generation and text generation, in a safe way within games. Stay tuned on that. On the other experiences on the platform, we're seeing continued really interesting stuff.

Once again, five experiences with more than 10 million DAUs. What Naveen shared that I think is really interesting is the growth all the way down to 1,000 and the breadth of what we have coming in the pipeline. We think there's a lot of headroom as we look at genres that we think should someday be really bigger on the platform: sports, racing, battle, RPG. Part of our whole roadmap is making sure the technology, search and discovery, and economy are there for those genres. The other thing I'll note is, without giving any forward predictions, we want to move as much money as we can from the top line to the creator community.

We want to get to the point where it's more and more clear it's more efficient to build an experience on Roblox, both from developer time as well as search and discovery, as well as monetization, relative to the stack that creators use in the existing gaming space.

Benjamin Black (Co-Head Internet Equity Research)

Great. Thank you very much.

David Baszuki (CEO and Co-founder)

Your next question comes from the line of Corey Carpenter with JP Morgan.

Cory Carpenter (Executive Director of Internet Equity Research)

Hey, good morning. Thanks for the question. Dave, I had two for you. Understanding you've been working on a number of initiatives over the past 18 months, what do you attribute all these viral hits happening in a really compacted short timeframe to? On geography, APAC, really, really strong growth this quarter. You called out a couple of countries, but hoping you could expand a bit on what's really resonating in that market. Thank you.

David Baszuki (CEO and Co-founder)

It's interesting, right? For the history of the company, we constantly try to attribute growth and acceleration to one or two big things. Whenever we do this attribution exercise, we come back to the notion that we're really doing hundreds of things at the same time. We have a very broad stack. It goes from 3D engine to creator tooling to search and discovery to apps on all devices to auto translation and up and up. We're really trying to innovate and execute on all of these. When we look at the viral hits that are here today, we believe it's all of those contributions working together rather than one big thing. They all play a role, right? Grow a Garden was picked up by our discovery algorithm. It arguably scaled based on the quality of our infrastructure. Our studio tooling helped Jandel build it quickly rather than over years.

It was built in months. All of these things really contribute. I think on APAC, we've had a huge focus on increasing the quality of our auto translation. We've had a huge focus in APAC on performance. We've added server capacity in Singapore and in other places. Over the last year, the performance of our infrastructure in APAC has gotten better and has scaled with that. In Japan especially, we had a bit of an unlock as we got to ultimately product quality on translation that I think supports the growth in that region. Even in APAC, my belief would be it's really a bunch of things working together.

Cory Carpenter (Executive Director of Internet Equity Research)

Thank you.

Operator (participant)

Moving next to Eric Sheridan with Goldman Sachs.

Eric Sheridan (Managing Director)

Thanks so much for taking the question and appreciate all the color. When you think about longer-term monetization of the platform and maybe for a mixture of Dave and Naveen, how do you think about the building blocks when you move from sort of product by product to more of this platform approach and you're building this developer ecosystem of how you're thinking about the building blocks for commerce as opposed to advertising and maybe the longer-term for subscription aspects to the business model? How should we think about mix of monetization evolving as the platform does? Thanks so much.

David Baszuki (CEO and Co-founder)

Yeah, I'll go first. Naveen, if you want to chime in. We really are building an ecosystem and a platform here, and we see a market where individual creators have a range of monetization vehicles to choose from and optimize for their own experiences.

As we roll out rewarded video ads, we believe some developers will focus very heavily on those, whereas some creators will stay with a virtual economy type model. We really want to have the best range of tools, both freemium, virtual currency, paid access gaming, ad-supported, and have an ecosystem where creators can do a pickup on that. That ultimately includes physical shopping as well, where I believe some of our creators are making most of their money now by selling physical items. The thought is the more we can drive genre expansion, raw engagement growth in more and more domains, DAU growth, and our growth, if we have the right economic system, it's going to pull through. I will highlight there are certain genres out there amongst older users that naturally monetize much more highly than Roblox does.

The expectation could be that as we start to see content in those genres amongst older users, with a market supporting that, we may and should see higher monetization within some of those.

Naveen Chopra (CFO)

Yeah, the only thing I would add to that is to remind everyone of kind of the flywheel nature of this, which is to say that I think all of those models for monetization are enhanced by continuing to drive user growth and engagement growth in the short term. All the things that you've heard us talk about today in terms of things that have been built over the last few years, that is the priority. You can see what it is unlocking in terms of engagement, user growth, and monetization with our current business model.

I really think that as that continues to accelerate, it's going to make it easier for both the platform and our creators to experiment with other types of monetization.

Eric Sheridan (Managing Director)

Thank you.

Operator (participant)

We'll move next to Ken Gawralski with Wells Fargo.

Ken Gawrelski (Managing Director and Senior Internet Analyst)

Thank you very much. And Naveen, nice to be back in contact again. Congrats on the new role. Look forward to working with you. Maybe we'll just follow up on Eric's question here and maybe a little finer tuned. Could you talk about where you are with the Google partnership on the advertising side, the implementation timeline, and how we should think about the opportunities for kind of ad monetization, and maybe where that is on the priorities? You've actually just had a tremendous period of growth on the platform.

In terms of prioritization of that opportunity and the rollout, how should we think about that throughout the rest of this year into next year? Within that, how much are you thinking about bringing other sources of third-party demand on the ad side? Thank you.

David Baszuki (CEO and Co-founder)

Yeah, I'll highlight. We did open the window of which creators can now offer rewarded video. We have been very fastidious in watching the performance of that product on both iOS and Android, making sure even on low-memory devices that we offer the performance and scale that we're used to. We've been doing that relentlessly, and we're now live. I've seen the internal results of the growth rate of the pickup of rewarded videos, and there is strong and continued pickup of it.

We're not splitting out the size of that, but there is, once again, a wide range of creators who this tends to line up for. We have a lot of creators now starting to experiment with this. I'm really excited about the opportunity to grow that. Stay tuned. We hope, as we start to imagine being 10% of the global gaming content market running through our platform, this will naturally form a monetization component for a chunk of developers that have experiences that make sense for this.

Naveen Chopra (CFO)

Just with respect to your question on bringing in additional partners, that is absolutely something that we envision doing as we continue to scale the business. As Dave said, we're still in relatively early days, although excited by the degree to which a lot of creators have started to integrate with Google capabilities. I think we have almost 100 publishers now onboarded. More to come on that front.

Ken Gawrelski (Managing Director and Senior Internet Analyst)

Thank you.

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

Rebecca? Are you there?

David Baszuki (CEO and Co-founder)

If we lost our moderator, we can go to reading questions ourselves.

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

Okay. Let's take the next question from Matthew Cost at Morgan Stanley. You can open up the line. We apologize. We are having some audio difficulties with our operator.

David Baszuki (CEO and Co-founder)

Assuming we're still live, if we have written questions, we can move to written.

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

I think it's an audio problem with our operator.

David Baszuki (CEO and Co-founder)

But we can start pulling questions off the stack.

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

Yes. We're trying to unmute Matthew Cost.

Matthew Cost (Executive Director of Equity Research)

Can you guys hear me?

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

Matthew? Yes.

Matthew Cost (Executive Director of Equity Research)

Hello?

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

Thank you.

Matthew Cost (Executive Director of Equity Research)

Okay. Great. Awesome. Maybe just on the creator rewards program that you talked about in the shareholder letter, how does that change incentives for creators versus the old engagement-based payouts? Should that drive any near-term meaningful uptick in the amount of DevEx that you're paying out?

David Baszuki (CEO and Co-founder)

That's the first question. The second one is just on discovery. Obviously, that's been such a huge part of driving deeper engagement and spending across the content portfolio. At what point do you make a more aggressive push into sponsored tiles? That really seems like an obvious commercial opportunity within that discovery engine. I guess what inning are you in with that, and when do you push more on that front? Thank you.

Eight great perceptive questions. Let's start with creator rewards. We're a systems company. We support a complex set of incentives for creators. As you correctly mentioned, with creator rewards, we want to fully optimize the alignment of those incentives with behavior that we think makes sense for the long-term health of the platform. This is a bit of a move from engagement-based payouts that pay for raw time.

In certain cases, paying for raw time can create incentives that maybe aren't optimal. With our new creator rewards system, we really want to make it good for creators who drive organic traffic to the platform. In the traditional gaming space, sometimes people drive traffic to their own web destination. We want to reward them for driving traffic and bringing viral new users to our platform. We think that is in alignment with what drives long-term health to the platform. We think it really makes more sense for a creator to do a social campaign or drive viral traffic to the platform. On the discovery side, I do want to highlight we have adopted the notion that with discovery, we want to drive long-term health of the platform, both for users, for creators, and the overall ecosystem. That means being very thoughtful about what we reward for discovery.

We're getting more and more transparent with what the things are that we reward for creators. They appreciate that. They can see in their own analytics dashboard the things that we're rewarding for discovery. You are spot on that over time, as we get better targeting with sponsored tiles, it's a very economical way for creators to bring more traffic to their game. It's also a great way for creators to launch an experience by buying traffic on Roblox rather than going somewhere else, really. We do think long-term there's a big future for sponsored tiles. Stay tuned on that. We're really focusing on making the optimization and the targeting of that better.

Matthew Cost (Executive Director of Equity Research)

Just on the financial impact of creator rewards, I think you asked about that as well. I would note two things.

David Baszuki (CEO and Co-founder)

In the short term, I don't think the transition from the prior engagement-based system to the framework that they've described is really going to have any material impact to the P&L. Obviously, we hope that over time we are sharing significant incremental earnings with our developers through creator rewards. I really view that as part of our overall strategy to share more dollars with creators as we capture operating leverage in other parts of the business.

Matthew Cost (Executive Director of Equity Research)

Great. Thanks.

Operator (participant)

Your next question comes from the line of Brian Gibbs with PMO Capital Markets.

Brian Gibbs (Analyst)

Thanks so much. Maybe a couple of things here. Can you talk about the new customer acquisition you saw during the quarter? How impactful was Grow a Garden to that new customer acquisition? Do you believe it's sustainable? Specifically, double-clicking on Grow a Garden, how sticky can that game be?

David Baszuki (CEO and Co-founder)

Can you talk about how these new players you've acquired behave relative to other players you've acquired previously? What does the age demo look like? Are you seeing some of the new content migrating to maybe an older age? I know you guys have been trying to age up for a while. Any of these viral titles reaching a generally older audience? Thanks.

I would feel there would be a nuance in that our vision is that we're creating a platform for all ages around the world. We've been working this vision for quite a while. I feel we're not just trying to age up. We're seeing it in the numbers as an increasing percentage of our users are over 13. We continue to show solid growth amongst that.

Starting even a year ago with Dress to Impress, we started to see experiences that are really big for users over 13, even if over 17. Dress to Impress last summer was being played in class in college. I think the same thing is happening in Grow a Garden in that it highlights a universal experience that's appealing to all ages. Arguably, it is helping pull older people onto the platform. We have still enormous headroom over 17 on the platform. I expect our creators are going to respond to that. They can see the opportunity to build great things.

Just fun and anecdotally, it's really fun to think through that on a gaming platform like Roblox, the last two super viral hits, Dress to Impress, were Fashion and then Gardening, which are non-typical gaming genres, which shows both the creativity on the platform as well as really the ability in the future for the more traditional genres to follow that. Grow a Garden's definitely bringing new users on the platform. That's why we've restructured creator rewards to reward people who create experiences like this, who bring new users to the platform.

Naveen Chopra (CFO)

Just to add a couple of things to that, there are some interesting dimensions in which Grow a Garden looks a little different than the platform as a whole. They've touched on this from an age and a user tenure perspective. We did see Grow a Garden kind of skew a little older than platform average.

I think that's compelling audience expansion. In terms of the durability of the experience, it's obviously still early days, but we see some early signals that this can be a very sustainable level of engagement for the title. If you look at some of the charts we publish on our homepage, you can see that it's still one of our top, if not the top, retaining game on the platform. It's a game that is very social in nature, and that's an ingredient that we have seen be an indicator of sustainability. Users who play with friends tend to engage at anywhere from 1.5 to 2 times the rate of non-coplay users. The game has very successfully taken advantage of live ops, including the Travis Kelsey event that Dave mentioned from last weekend. There's definitely the potential for evergreen hits.

We've seen some of those on the platform in the past, things like Brookhaven, Bloxfruits, etc., but also instances of games that have peaked and then started to taper. As I mentioned in my comments around guidance. We're sort of assuming normalization just out of, I guess, prudence. We really like the ingredients that we see in Grow a Garden and its potential to be a sustainable game over the long term.

David Baszuki (CEO and Co-founder)

Complementing what Naveen said, for those of you that are game historians looking back over the last 5, 10, or 15 years, there have been social asynchronous games on other platforms that involve things like gardening and growing things that have sustained fairly well. There have been some historical patterns of fairly sticky type experiences like this.

Brian Gibbs (Analyst)

Thanks for the color, Dave. Welcome, Naveen.

Naveen Chopra (CFO)

Thank you.

Operator (participant)

We have time for one last question from Ross Sandler with Barclays.

Ross Sandler (Analyst)

Hey, guys. Just following up on that last question. It isn't just that Grow a Garden's breaking records in terms of size of concurrent, but also the speed by which they ascended in that first 100 days or so. Could you talk a little bit about algorithmic changes you've made that made that possible in terms of that speed versus just the natural kind of social virality built into that game and how repeatable that is across other titles? Naveen, following up on that last comment, could you talk about how you're retaining or moving first-time Roblox users who are coming in to play Grow a Garden into other experiences? Thank you.

David Baszuki (CEO and Co-founder)

The discovery that occurred with Grow a Garden after that was launched with our recommendation system should be intrinsically repeatable in that it was algorithmic.

It was based on the things we use to estimate the long-term value of that property for each individual user, not necessarily in the short term, but over the next year. We're trying to project the one-year-plus value of any experience for any user relative to a wide range of factors. That is getting better all the time. It's why we're transparent with discovery. The more transparent we are with recommendations and the more we share with creators what the signals are, it creates an environment where creators who are satisfying all of these signals are basically building amazingly interesting and satisfying experiences. I do feel it's repeatable and native to the platform. I'll hand it over to Naveen if you want to talk about the second part of the question.

Naveen Chopra (CFO)

Yeah. Look, we're confident that the more time people spend on the platform, the more they will discover new experiences. I think that's exactly what has happened with Grow a Garden. It's obviously driven tremendous levels of engagement. We know that basically three-quarters of the daily active users on Grow a Garden are also engaging with at least one other experience. That sort of organic discovery, which leverages all the capabilities of the platform that you've heard Dave describe, I think really is working. Grow a Garden is a great example of that.

Stefanie Notaney (Senior Director of Financial and Corporate Communications)

I want to thank everyone for joining us today. I'm going to turn it back to Rebecca to close out the call.

Operator (participant)

Thank you. That does conclude today's conference call. Thank you all for your participation. You may now disconnect. Goodbye.