If you back out cost of revenue for Roblox, you get 75% gross margins.
But if you take out infrastructure, trust and safety (depreciated server costs), gross margins are more like 50%.
Then, if you count DevEx fees as part of COGS, "gross margins" are 13%.
Am I off here?
But if you take out infrastructure, trust and safety (depreciated server costs), gross margins are more like 50%.
Then, if you count DevEx fees as part of COGS, "gross margins" are 13%.
Am I off here?
The interesting thing is that the S-1 says: 
In the past 2 years, DevEx fees as a percentage of revenue were 22%.
This year, they shot up to 36% and the S-1 suggests that proportion should continue to increase.
This year, they shot up to 36% and the S-1 suggests that proportion should continue to increase.
However, cash from operations as a % of revenue is huge because of how Robux are bought and then spent in the digital economy over time.
My inkling is that typical accounting standards don't fully capture Roblox as a business.
Maybe "true" gross margins are misleading?
My inkling is that typical accounting standards don't fully capture Roblox as a business.
Maybe "true" gross margins are misleading?
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