And for Q1, the midpoint is about 8%, which is also 110 basis points higher than where we were last year in Q1, again, just the seasonality and the change in margins and the high end implies 8.3% or about 140 basis point improvement. So with that, why don’t we turn it over to questions?
David Baszucki: Yeah. And just highlighting two growth rates, Q4 bookings growth, 25%; fiscal year bookings growth, 23%. So, thanks, Mike.
Operator: [Operator Instructions] We’ll first go to the line of Omar Dessouky with Bank of America. Please go ahead.
Omar Dessouky: Hi. Thank you for taking my question. I wanted to get a sense of how much the developer layoffs in the video game industry could potentially be a tailwind for you in 2024. Some industry experts estimate that over 10,000 workers lost their jobs in the video game industry in 2023. And Kotaku reports that over 6,000 have already lost their jobs in January, including 2,000 from Microsoft. And I was wondering, did you notice more mobile app and PC console game developers than usual joining the Roblox developer community in Q4 or in January so far. And what is Roblox doing in 2024 to attract some of that video game industry talent to your ecosystem? And then, I have one quick question after that.
David Baszucki: Hey. Two ways to talk about this. First, we continue internally within the company to hire throughout this year. Also over — really all of the last years, all the cohorts of the creators on Roblox have continued to grow and make more money whether it’s the top 10, top 100, or top 1,000. So, what you’re asking has already been in place for several years. And as we grow bookings, we grow the economic opportunity on our platform. So, we believe naturally, irrespective of the layoffs, our creator community will continue to grow.
Omar Dessouky: Okay, got it. Actually, you’ve answered my question, so I’ll let the next person go. Thank you.
David Baszucki: Thank you.
Mike Guthrie: Thank you, Omar.
Operator: Next, we’ll go to the line of Jason Tilchen with Canaccord Genuity. Please go ahead.
Jason Tilchen: Great. Good morning. Thanks for taking the question. I’m curious with the really strong bookings growth in Q4, wondering to whatever extent you can share about upside that was driven by advertising. And then just more higher level, where do you stand today in terms of building out some of those additional capabilities and measurement tools we talked about at the Investor Day?
David Baszucki: I’ll go high level, and then let Mike. We have a plan throughout this year to add more ability for our partners to measure and see what’s going on on the platform. We had real bookings in Q4. We have a quarterly target for advertising within the company. We’re not sharing the splits, but we are very focused on this year maturing the size of that market.
Mike Guthrie: Hey, Jason. We said in the past that we’re going to start disclosing specific financial data on advertising when it becomes material and really important to the financial results. And so, while we’re really pleased with the progress, we have not hit that point yet.
Jason Tilchen: Okay, great. Thank you very much.
Mike Guthrie: Thanks.
Operator: Next, we’ll go to the line of Brian Pitz with BMO Capital Markets. Please go ahead.
Brian Pitz: Thanks for the question. While you continue to make progress aging up the user base, this does remain one of the biggest questions from investors; what do you attribute as being the biggest factor in attracting and retaining older users? Is it the higher quality or is it different content? And then, as you look at the audience, I’m really curious about how the different age cohorts are engaging differently on the platform. It’d be really great to hear more in terms of gameplay and spending habits between the different age cohorts. Thanks so much.
David Baszucki: Hey. First on how do we do this, I want to highlight we have been doing this for two, three or four years already. And several years back, the vast majority of people on our platform were under 13, so seeing the growth over 13 is a really good sign. We attribute it to such a wide range of things, quality of the platform, search and discovery, organic growth of new older players, existing players retaining and aging up. We do see a play habits generally of older players that might mirror what we see in existing gaming and communication markets. We can see certain cohorts that might lean in for longer engagement on a PC-type experience. We can see other cohorts that lean in socially on mobile. So, the good news is we are seeing patterns on Roblox that mirror really large markets, the overall gaming market, the overall social communication market, and where no specific thing, many, many things all contributing to both, I would say, retention-based growth as well as viral new player growth around the world.
Mike Guthrie: Hey, Brian. Just to add to Dave’s comments, yeah, we’ve been — the growth in older users has been higher than the growth in younger users for a long time. It’s the majority of the user population today. In terms of behavior — and that has been just consistent quarter after quarter after quarter. In terms of behavior, in addition to Dave’s comments about engagement, the older users do tend to monetize a bit better, on sort of a like-for-like basis, meaning, cohorted by time spent on the platform. So, over the long run, that is generally a boost to monetization.
David Baszucki: I want to highlight one can qualitatively see the expansion of content that intuitively would seem appealing to older players both in, maybe the realistic battle genre, in the fashion and dressing genre, I’ve tweeted to highlight some of these properties.
Brian Pitz: Great. Thanks so much.
Mike Guthrie: Thanks, Brian.
Operator: Next, we’ll move to the line of Clark Lampen with BTIG. Please go ahead.
Clark Lampen: Thanks. Good morning. I’ve got two, one for Dave, one for Mike. Dave, the network effects that you talked about in the Shareholder Letter, is it possible to contextualize for us how much of your user base is either utilizing the voice tools or maybe some of the more recent text translation, and how much that affects behavior? And Mike, the uptick in bookings per DAU growth that we saw this quarter, should we expect that to continue? And if so, are there recent releases or maybe economy items that are in pipeline that you’d highlight for us amongst the drivers? Thank you.
David Baszucki: I don’t have in front of me the voice DAU number. I shared 161% voice DAU growth year-over-year in the quarter. Our internal metrics, when we look at users who are using voice, show lovely gains on retention, on engagement, and on other aspects. So, there is a network effect and that the more of our base that is using voice, we see other metrics go up at the same time.
Mike Guthrie: And, Clark, on the bookings per DAU question, I’m going to be focused primarily — we will be focused primarily on bookings and bookings growth. If DAUs happen to grow a little bit faster, then that number might come down a little bit. If they happen to grow more slowly, that number will go up a little bit. On the other hand, I will say, the economy team at Roblox has more compelling initiatives going on than I’ve ever seen. And so, I’m certainly excited and optimistic about the ability to continue to improve monetization.
Clark Lampen: Thank you.
Mike Guthrie: I would also look at that number generally again just to make sure seasonality just compare like periods to like periods for the most part.
Operator: Next, we’ll move to the line of Ken Gawrelski with Wells Fargo. Please go ahead.
Ken Gawrelski: Thank you for the time. I appreciate the opportunity. I want to go back to the advertising, and I understand that it’s too early to quantify, but could you give us a sense of kind of the key signpost we should be looking for as you develop the opportunity, whether it be market research or case studies with brands? And how do you think about the — how should we think about your development of your direct sales force? Where are you in the build out of that process? And are you ready to go to market? Thank you.
David Baszucki: Yeah. I’ll share the signpost one might watch. We shared anecdotally just rough growth in the number of brands advertising on the platform. This year, you’ll see from a platform point of view, more and more measurement abilities for our partners to attribute brand advertising. We have shared that we are also building experiments with physical shopping, but no ship date on that that we think will ultimately create a full closed loop effect for advertisers on the platform. As Mike said, we’re not sharing specific numbers on the development. In Q4, we hired Stephanie Latham, who’s driving just an awesome team, and we’re growing out that brand partnership team to go to market. I just met with them all yesterday actually, and it’s an amazing team. Mike, I don’t know if you want to add anything on top of that.
Mike Guthrie: No, I was going to say the same thing. Both Dave and I had the opportunity to address the new and emerging organization. So it’s growing, new people all the time, very talented, very excited. And Ken, I think one of the main points of this is what are the best ways to show signposts as we get to that revenue level that will become material. And so, we’ll continue to come back on that. Right now, it’s a sheer number of engagements is the right way to look at it. And Dave talked a little bit about the number of brands that started to work with us in Q4, and the quality of them and the depth of the engagement is fantastic. So, we’ll be talking more about that in subsequent quarters.
Ken Gawrelski: Thank you, both.
Operator: Next, we’ll move to the line of Eric Sheridan with Goldman Sachs. Please go ahead.
Eric Sheridan: Thanks so much for taking the question. I want to know if you’ll go a little bit deeper on your updated thoughts on some of the more emerging platforms, elements of augmented reality, spatial computing, platforms like the Quest 3 and the Vision Pro from Apple, and how you think about continuing to widen out means of distribution and new experiences for users over the medium to long term? Thanks so much.
