Gross Margin % is calculated as gross profit divided by its revenue. Roblox's Gross Profit for the
three
months ended in Dec. 2024 was $769 Mil. Roblox's Revenue for the
three
months ended in Dec. 2024 was $988 Mil. Therefore, Roblox's Gross Margin % for the quarter that ended in Dec. 2024 was 77.86%.
The historical rank and industry rank for Roblox's Gross Margin % or its related term are showing as below:
RBLX'
s Gross Margin % Range Over the Past 10 Years
Min: 74.03 Med: 75.93 Max: 77.76
Current: 77.76
During the past 7 years, the highestGross Margin % of Roblox was 77.76%. The lowest was 74.03%. And the median was 75.93%.
RBLX's Gross Margin % is ranked better than 65.31% of 516
companies
in the Interactive Media industry
Industry Median: 62.185
vs RBLX: 77.76
Roblox had a gross margin of 77.86% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Roblox was 0.70% per year.
Roblox Gross Margin % Historical Data
The historical data trend for Roblox's Gross Margin % 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.
For the Electronic Gaming & Multimedia subindustry, Roblox's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Roblox's Gross Margin % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Roblox's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Roblox's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Roblox (NYSE:RBLX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Roblox had a gross margin of 77.86% for the quarter that ended in Dec. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Roblox Gross Margin % Related Terms
Thank you for viewing the detailed overview of Roblox's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Roblox operates a free-to-play online video game platform with about 85 million daily active users. This platform has spawned a virtual universe and a Roblox economy based on the Robux currency. The platform houses millions of games from a wide range of creators spanning from young gamers themselves to professional development studios. Roblox offers creators the tools, publishing abilities, and platform for their games, enabling anyone to create a game. Creators earn money when gamers make optional in-game purchases within their games and by offering space for real-world advertising, and Roblox earns revenue primarily by taking a cut of these earnings.
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