Speaker 1: Bloomberg Audio Studios, podcasts, radio news, grow regard ninety nine
Speaker 1: Nights in the Forest, Steal a Brain, rot, three games,
Speaker 1: propelling Roadblocks to its highest level of daily active users.
Speaker 1: The company also posting nearly two billion dollars in bookings
Speaker 1: in the third quarter. Still shares of the company trading
Speaker 1: lower after the earnings. Let's talk all through all of
Speaker 1: this with Daveazuki found a CEO of Roadblocks, and Dave,
Speaker 1: this growth, this is real playing commitment comes at a
Speaker 1: cost and infrastructure cost, and we see costs go up
Speaker 1: because of safety that you're enacting, but also the cloud compute.
Speaker 1: How do you start to monetize to make up for
Speaker 1: some of those costs.
Speaker 2: Yeah, thanks for noting the amazing quarter we just had.
Speaker 2: Both bookings growth was up seventy percent year on year
Speaker 2: at one point nine billion, and as you noted, our
Speaker 2: daily active users passed one hundred and fifty million, which
Speaker 2: is up seventy percent year on year. In addition to
Speaker 2: those three games you mentioned, we had seven games on
Speaker 2: Roadblocks in the last quarter, past ten million daily active
Speaker 2: users and a really healthy content ecosystem. Five of those
Speaker 2: seven experiences were created in the last year We've hit
Speaker 2: some really peak numbers. We had forty five million concurrent
Speaker 2: players all at the same time. What we said on
Speaker 2: the earnings call is with all of this growth, which
Speaker 2: is cumulatively averaging thirty seven percent over the last two years,
Speaker 2: we are going to be spending on infra. What we
Speaker 2: said is the continued decreases in costs for infra. We
Speaker 2: may slow that down a bit as we spend. But
Speaker 2: the final thing I want to generate is the cash
Speaker 2: flow that we generated on the platform. We generated over
Speaker 2: four hundred and forty million of free cash flow in
Speaker 2: Q four.
Speaker 3: DAVE. Looking forward, then how are you managing out some
Speaker 3: of the technology plays that you made age verification technology
Speaker 3: in a way that doesn't impact or slow the growth
Speaker 3: of both active users in the bookings.
Speaker 2: We've made a commitment a while back to what we
Speaker 2: believe will be the cold standard for safety on platforms
Speaker 2: like Roadblocks and throughout the industry. With new advances in AI,
Speaker 2: we're going to use facial age estimation to estimate the
Speaker 2: age of everyone on our platform. And in addition to
Speaker 2: the text filtering we do the critical harms monitoring the
Speaker 2: prevention of any image sharing. We're going to use that
Speaker 2: to help gate who communicates and who they communicate with.
Speaker 2: I was just in an executive staff meeting on Tuesday
Speaker 2: playing with the role out of this product. It's really elegant,
Speaker 2: and we of course want to highlight there may be
Speaker 2: some friction, but I'm really optimistic this is the long
Speaker 2: term good play for Roadblocks, which is really establishing the
Speaker 2: standard of how we believe safety and civility is going
Speaker 2: to run in the future, and that.
Speaker 1: Your CFO made the point that's going to have long
Speaker 1: term value for shareholders. You make it again, Dave, talk
Speaker 1: to us there for about the new technology, not just
Speaker 1: in safety, but also in how you build games and
Speaker 1: high fidelity feeling of a game. But some of these
Speaker 1: big winners that we've had, we just them at the top.
Speaker 1: They are kind of more old school feeling in many ways,
Speaker 1: but they're the ones breaking records, grow a garden, more
Speaker 1: classic and blockie. How do you compromise on that.
Speaker 2: We've highlighted our vision of getting the ten percent of
Speaker 2: all the global gaming content market running on Roadblocks. In
Speaker 2: this quarter we pass three percent, so there's a lot
Speaker 2: of room to go. We have an enormous amount of
Speaker 2: new technology coming to support more diverse experiences, to support
Speaker 2: different types of avatars, to support competitive gaming and genres
Speaker 2: like racing or sports, to support role playing games and
Speaker 2: other types. And we really do have a vision for
Speaker 2: genre expansion, but in a really future looking way, and
Speaker 2: that when creators make experiences on Roadblocks, they run well,
Speaker 2: either on low end Android devices like a two gigabyte
Speaker 2: Android phone or on high end gaming pieces, and they
Speaker 2: run around the world. So we're optimistic with the new technology,
Speaker 2: our economics and discovery, we're going to see a diversification
Speaker 2: of the types of experiences we see on our platform.
Speaker 3: Dave, you want ten percent of the gaming content market?
Speaker 3: That changed in the quarter. I saw layoffs at Amazon
Speaker 3: and Microsoft's gaming divisions, Electronic Arts elected to go private.
Speaker 3: The big publicly traded peer that you have private with
Speaker 3: the SAUDIS reacts with your interpretation of what that signals
Speaker 3: for the market you're trying to grow in well.
Speaker 2: People estimate the global gaming market somewhere between one eighty
Speaker 2: and two hundred billion. What we've seen on Roadblocks is
Speaker 2: really a future forward optimistic look at gaming. We've seen
Speaker 2: new types of genres given the the Roadblocks platform, the
Speaker 2: ability to play with friends on different devices. Addressed to
Speaker 2: Impress last year was a whole new type of experience.
Speaker 2: People competing in a fashion show grow a garden. I'm
Speaker 2: really proud of because hitting those top numbers, making new
Speaker 2: records for over twenty million Concurrence is literally a game
Speaker 2: you can play either while you're there or when you're
Speaker 2: not there. Your garden keeps growing when you're not playing.
Speaker 2: So I think the way to think about this is
Speaker 2: not just protecting abunst the history of gaming, but looking
Speaker 2: at whole new types of games that are going to
Speaker 2: be built on platforms like Roadblocks and accelerated with AI
Speaker 2: as every game starts to have access to AI as well.
Speaker 3: David Zooki, Roebooks CEO, thank you very much