00:00You made really bold statements in the investor letter saying this is worth it.
00:05This is worth it long term because it's building a safer global standard of safety.
00:09Talk us through when you will see actually that friction die down.
00:14Hey, great to be here and highlighting coming off a great quarter, 43 percent year on year bookings growth, bookings
00:21of one point seven billion dollars.
00:24More than twice what we've shared with investors is our long term growth trajectory.
00:30And yes, we've highlighted our commitment to setting the global standard for healthy, safe, age appropriate digital engagement.
00:39We have rolled out age check all around the world this quarter.
00:44We now have over 65 percent of U.S. users who we have age checked.
00:49But we did highlight in our earnings call there is some short term friction from communication and other factors.
00:57We believe, though, this is worth it.
01:00We are well on our path to 10 percent or more of the global gaming market and more of that
01:07of U.S.
01:07And we want to bring along all of our under 16 users as well as the over 16 who are
01:15growing very rapidly.
01:17How about bringing along the industry, Dave?
01:20Because you're a first adopter here of this technology that can help age verify.
01:26Do you think others in gaming will have to do this?
01:28Do you think others will experience such friction as you come out of it?
01:32I want to highlight if you go to our corporate site and read our values, one is take the long
01:37view and the other is respect the community.
01:40We've continuously innovated on safety since we started in the company.
01:45And as the technology got good enough to age check, we've leaned into it.
01:51This is an addition, of course, to our industry leading text filtering, the fact that we don't allow image sharing
01:57on the platform.
01:58This has allowed us to do several things.
02:01In addition to age checking, we're going to be introducing kids accounts and select accounts.
02:07We're able to do this within our same app because we are age checking.
02:12Also, because we're age checking, we can now identify the 18 and up players on our platform.
02:18And we've introduced some interesting economics for them.
02:22So we do think we're setting the industry standard and we have this commitment to what we call the global
02:28standard.
02:30Dave, good morning.
02:31You came on the program three weeks ago and I asked you if you would kindly model for us at
02:39that moment when you were announcing the new policy and new platform changes with safety in mind, how that would
02:46impact user behavior.
02:48And that's kind of played out in the in the earnings print, right?
02:51Just explain that the interaction between the policy that you put in place and why it would impact user metrics
02:59and behaviors on the platform.
03:01Well, I want to highlight we're using age check and we're asking our users to age check if they want
03:08to use the communication functionality on Roblox.
03:12So in Australia, we're over 70 percent age checked in the U.S., over 65 percent.
03:18But that does highlight there could be roughly 35 percent of our users in the U.S. who currently are
03:25not communicating on our platform.
03:27We believe that can contribute to some short term friction.
03:31In addition, as we go long on our 18 and over segment, we've shared that more and more we're using
03:40our recommendation algorithms to support long term retention on the platform, more than shorter term monetization.
03:48These both have contributed to short term friction.
03:53Dave, let's let's talk about Roblox's future and Roblox reality.
03:57This seems like a big play, a big upgrade from Roblox Studio.
04:02We talk all the time to Unity.
04:05I am very into Unreal Engine, right?
04:08And how that impacts my experience in the games that I play.
04:12This presents an opportunity for you to do work with some of the big budget developers.
04:18Could you just explain the pathway to that?
04:21Well, I want to highlight two separate levels of this.
04:24We have continued to release over the last quarter and will continue functionality that is very unique to Roblox.
04:31Roblox is a game engine, a client, a cloud.
04:35And together we're committed to publishing once and having whatever you publish work both super high quality on a gaming
04:44PC, but also perform very well on a two gigabyte Android phone.
04:50Those are very different configurations.
04:52We want to support both with the same build as well as when our creators build on Roblox, they go
04:59around the world.
05:00The future for us is a hybrid architecture.
05:04And what we want to do is make it easy for creators to create experiences that are ultimately multiplayer and
05:12photorealistic and do it very easily by powering it with AI.
05:17So we have combined really a hybrid architecture.
05:21We're starting to show it off that combines our multiplayer synchronization with cutting edge real time video world models.
05:29We believe this is the ultimate hybrid architecture to democratize photorealistic multiplayer.
05:34I like that about the democratization and making sort of the building of games open to many.
05:41But how do you think about the pricing structure briefly, Dave?
05:46We've said initially Roblox reality will not be free.
05:50I mean, real time video AI modeling in the cloud is expensive.
05:55But just like with the rest of the AI world, these prices are going to come down and down.
06:01I want to highlight this is complemented really with our vision for creation.
06:06And if we look at what's happening in the coding space over the last six months, more and more software
06:13engineers are literally having AI run overnight, doing multiple iterations to help build software.
06:21Gaming is much more complex.
06:23It involves software, 3D assets, NPCs, real time operations, terrain, geometry.
06:31We're really pursuing that same vision, that agentic multiple iteration AI work with Roblox Studio.
06:40We started introducing things as innovative as using NPCs to help test software.
06:47And we believe we're uniquely poised to help creators build more quickly, higher quality and more diverse experiences.
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