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Roblox (Roblox) Operating Income : $-1,259 Mil (TTM As of Dec. 2023)


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What is Roblox Operating Income?

Roblox's Operating Income for the three months ended in Dec. 2023 was $-355 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-1,259 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Roblox's Operating Income for the three months ended in Dec. 2023 was $-355 Mil. Roblox's Revenue for the three months ended in Dec. 2023 was $750 Mil. Therefore, Roblox's Operating Margin % for the quarter that ended in Dec. 2023 was -47.36%.

Warning Sign:

Roblox Corp operating margin has been in a 5-year decline. The average rate of decline per year is -17%.

Roblox's 5-Year average Growth Rate for Operating Margin % was -17.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Roblox's annualized ROC % for the quarter that ended in Dec. 2023 was -25.56%. Roblox's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -92.26%.


Roblox Operating Income Historical Data

The historical data trend for Roblox's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Roblox Operating Income Chart

Roblox Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial -76.44 -266.14 -495.10 -923.78 -1,259.07

Roblox Quarterly Data
Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -301.90 -289.85 -313.99 -300.04 -355.19

Roblox Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1,259 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Roblox  (NYSE:RBLX) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Roblox's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-1420.772 * ( 1 - -0.09% )/( (5360.977 + 5766.933)/ 2 )
=-1422.0506948/5563.955
=-25.56 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5754.13 - 218.832 - ( 2156.342 - max(0, 2795.135 - 2969.456+2156.342))
=5360.977

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6168.078 - 178.098 - ( 2193.274 - max(0, 3052.366 - 3275.413+2193.274))
=5766.933

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Roblox's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1260.396/( ( (1371.761 + max(-1892.409, 0)) + (1360.467 + max(-1873.631, 0)) )/ 2 )
=-1260.396/( ( 1371.761 + 1360.467 )/ 2 )
=-1260.396/1366.114
=-92.26 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(285.315 + 0 + 515.909) - (218.832 + 2208.531 + 266.27)
=-1892.409

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(505.769 + 0 + 561.673) - (178.098 + 2406.292 + 356.683)
=-1873.631

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Roblox's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=-355.193/749.939
=-47.36 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Roblox Operating Income Related Terms

Thank you for viewing the detailed overview of Roblox's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Roblox (Roblox) Business Description

Traded in Other Exchanges
Address
970 Park Place, San Mateo, CA, USA, 94403
Roblox operates an online video game platform that lets young gamers create, develop, and monetize games (or "experiences") for other players. The firm effectively offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. The platform is a closed garden that Roblox controls, earning revenue in multiple places while benefiting from outsourced game development. Unlike traditional video game publishers, Roblox is more focused on the creation of new tools and monetization techniques for its developers then creating new games or franchises.
Executives
Mark Reinstra officer: Gen. Counsel & Secretary 970 PARK PLACE, SAN MATEO CA 94403
Gregory Baszucki director 970 PARK PLACE, SAN MATEO CA 94403
David Baszucki director, 10 percent owner, officer: President & CEO 970 PARK PLACE, SAN MATEO CA 94403
Amy Marie Rawlings officer: Chief Accounting Officer C/O ZYNGA INC., 699 8TH STREET, SAN FRANCISCO CA 94103
Manuel Bronstein officer: Chief Product Officer 970 PARK PLACE, SUITE 100, SAN MATEO CA 94403
Han Kim 10 percent owner 2882 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Daniel Sturman officer: Chief Technology Officer 970 PARK PLACE, SAN MATEO CA 94403
Barbara Messing officer: CMKtg & People Exper Officer C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Michael Guthrie officer: Chief Financial Officer TRUECAR, INC., 120 BROADWAY, SUITE 200, SANTA MONICA CA 90401
Jason Kilar director 208 S. AKARD ST, DALLAS TX 75202
Craig Donato officer: Chief Business Officer 970 PARK PLACE, SAN MATEO CA 94403
Altos Management Partners Iv Lr Gp, Llc 10 percent owner 2882 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Deepika Gupta officer: Principal Accounting Officer C/O ROBLOX CORPORATION, 970 PARK PLACE, SAN MATEO CA 94403
Brett Tolley officer: Principal Accounting Officer 970 PARK PLACE, SAN MATEO CA 94403
Altos Hybrid 2, L.p. 10 percent owner 2882 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025

Roblox (Roblox) Headlines

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