Roblox Records $900 Million in Losses for 2022
In its recent earnings report, Roblox reveals that it accounted for over $900 million in losses in 2022 despite its average daily active user numbers going up during the same period, year-on-year. Roblox has been growing in popularity over the past few years, particularly after the social gaming platform went live on Android and iOS, followed by its IPO. Its latest financial report paints an interesting picture of how the company has fared last year.
One of the contributing factors to Roblox's growth is its many collaborations with other franchises ranging from Chipotle to Sonic The Hedgehog that enable Gamefam to bring a slew of gaming experiences to the platform. Alongside this growing popularity, the company is also actively investing in technologies and infrastructural capabilities. For instance, the platform has already filed a patent for an age-appropriate Roblox content recommendation system and another that allows creators to implement advanced facial animations via its texture manipulation technology. Now, it appears these seemingly long-term investments have made their mark in the company's latest earnings as well.
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According to Roblox's financial report, the platform has recorded $291.5 million in net losses during the fourth quarter of the year ending in 2022, which incidentally follows a similar third quarter where Roblox reported $300 million in losses. Overall, its net losses amounted to $934.14 for the year ending 2022. The company changed its estimated user life from 23 months to 25 months in Q1 2022 and to 28 months in Q3. As a result, the carrying amount of deferred revenue and deferred cost of revenue has
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