WEBVTT - ROBLOX CEO David Baszucki Talks Earnings

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, grow regard ninety nine

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<v Speaker 1>Nights in the Forest, Steal a Brain, rot, three games,

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<v Speaker 1>propelling Roadblocks to its highest level of daily active users.

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<v Speaker 1>The company also posting nearly two billion dollars in bookings

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<v Speaker 1>in the third quarter. Still shares of the company trading

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<v Speaker 1>lower after the earnings. Let's talk all through all of

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<v Speaker 1>this with Daveazuki found a CEO of Roadblocks, and Dave,

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<v Speaker 1>this growth, this is real playing commitment comes at a

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<v Speaker 1>cost and infrastructure cost, and we see costs go up

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<v Speaker 1>because of safety that you're enacting, but also the cloud compute.

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<v Speaker 1>How do you start to monetize to make up for

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<v Speaker 1>some of those costs.

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<v Speaker 2>Yeah, thanks for noting the amazing quarter we just had.

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<v Speaker 2>Both bookings growth was up seventy percent year on year

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<v Speaker 2>at one point nine billion, and as you noted, our

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<v Speaker 2>daily active users passed one hundred and fifty million, which

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<v Speaker 2>is up seventy percent year on year. In addition to

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<v Speaker 2>those three games you mentioned, we had seven games on

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<v Speaker 2>Roadblocks in the last quarter, past ten million daily active

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<v Speaker 2>users and a really healthy content ecosystem. Five of those

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<v Speaker 2>seven experiences were created in the last year We've hit

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<v Speaker 2>some really peak numbers. We had forty five million concurrent

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<v Speaker 2>players all at the same time. What we said on

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<v Speaker 2>the earnings call is with all of this growth, which

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<v Speaker 2>is cumulatively averaging thirty seven percent over the last two years,

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<v Speaker 2>we are going to be spending on infra. What we

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<v Speaker 2>said is the continued decreases in costs for infra. We

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<v Speaker 2>may slow that down a bit as we spend. But

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<v Speaker 2>the final thing I want to generate is the cash

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<v Speaker 2>flow that we generated on the platform. We generated over

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<v Speaker 2>four hundred and forty million of free cash flow in

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<v Speaker 2>Q four.

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<v Speaker 3>DAVE. Looking forward, then how are you managing out some

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<v Speaker 3>of the technology plays that you made age verification technology

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<v Speaker 3>in a way that doesn't impact or slow the growth

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<v Speaker 3>of both active users in the bookings.

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<v Speaker 2>We've made a commitment a while back to what we

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<v Speaker 2>believe will be the cold standard for safety on platforms

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<v Speaker 2>like Roadblocks and throughout the industry. With new advances in AI,

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<v Speaker 2>we're going to use facial age estimation to estimate the

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<v Speaker 2>age of everyone on our platform. And in addition to

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<v Speaker 2>the text filtering we do the critical harms monitoring the

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<v Speaker 2>prevention of any image sharing. We're going to use that

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<v Speaker 2>to help gate who communicates and who they communicate with.

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<v Speaker 2>I was just in an executive staff meeting on Tuesday

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<v Speaker 2>playing with the role out of this product. It's really elegant,

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<v Speaker 2>and we of course want to highlight there may be

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<v Speaker 2>some friction, but I'm really optimistic this is the long

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<v Speaker 2>term good play for Roadblocks, which is really establishing the

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<v Speaker 2>standard of how we believe safety and civility is going

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<v Speaker 2>to run in the future, and that.

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<v Speaker 1>Your CFO made the point that's going to have long

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<v Speaker 1>term value for shareholders. You make it again, Dave, talk

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<v Speaker 1>to us there for about the new technology, not just

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<v Speaker 1>in safety, but also in how you build games and

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<v Speaker 1>high fidelity feeling of a game. But some of these

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<v Speaker 1>big winners that we've had, we just them at the top.

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<v Speaker 1>They are kind of more old school feeling in many ways,

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<v Speaker 1>but they're the ones breaking records, grow a garden, more

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<v Speaker 1>classic and blockie. How do you compromise on that.

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<v Speaker 2>We've highlighted our vision of getting the ten percent of

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<v Speaker 2>all the global gaming content market running on Roadblocks. In

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<v Speaker 2>this quarter we pass three percent, so there's a lot

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<v Speaker 2>of room to go. We have an enormous amount of

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<v Speaker 2>new technology coming to support more diverse experiences, to support

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<v Speaker 2>different types of avatars, to support competitive gaming and genres

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<v Speaker 2>like racing or sports, to support role playing games and

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<v Speaker 2>other types. And we really do have a vision for

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<v Speaker 2>genre expansion, but in a really future looking way, and

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<v Speaker 2>that when creators make experiences on Roadblocks, they run well,

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<v Speaker 2>either on low end Android devices like a two gigabyte

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<v Speaker 2>Android phone or on high end gaming pieces, and they

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<v Speaker 2>run around the world. So we're optimistic with the new technology,

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<v Speaker 2>our economics and discovery, we're going to see a diversification

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<v Speaker 2>of the types of experiences we see on our platform.

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<v Speaker 3>Dave, you want ten percent of the gaming content market?

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<v Speaker 3>That changed in the quarter. I saw layoffs at Amazon

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<v Speaker 3>and Microsoft's gaming divisions, Electronic Arts elected to go private.

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<v Speaker 3>The big publicly traded peer that you have private with

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<v Speaker 3>the SAUDIS reacts with your interpretation of what that signals

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<v Speaker 3>for the market you're trying to grow in well.

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<v Speaker 2>People estimate the global gaming market somewhere between one eighty

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<v Speaker 2>and two hundred billion. What we've seen on Roadblocks is

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<v Speaker 2>really a future forward optimistic look at gaming. We've seen

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<v Speaker 2>new types of genres given the the Roadblocks platform, the

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<v Speaker 2>ability to play with friends on different devices. Addressed to

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<v Speaker 2>Impress last year was a whole new type of experience.

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<v Speaker 2>People competing in a fashion show grow a garden. I'm

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<v Speaker 2>really proud of because hitting those top numbers, making new

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<v Speaker 2>records for over twenty million Concurrence is literally a game

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<v Speaker 2>you can play either while you're there or when you're

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<v Speaker 2>not there. Your garden keeps growing when you're not playing.

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<v Speaker 2>So I think the way to think about this is

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<v Speaker 2>not just protecting abunst the history of gaming, but looking

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<v Speaker 2>at whole new types of games that are going to

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<v Speaker 2>be built on platforms like Roadblocks and accelerated with AI

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<v Speaker 2>as every game starts to have access to AI as well.

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<v Speaker 3>David Zooki, Roebooks CEO, thank you very much