Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the Roblox Q3 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question- and- answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Stefanie Notaney, Director of Financial Communications. Please go ahead. Good morning, everyone, and thank you for joining our Q&A session to discuss Roblox's Q3 2022 results. With me today is Roblox's CEO, David Baszucki, and CFO, Mike Guthrie. Before we start, I want to remind everyone that earlier this morning, we published a shareholder letter and earnings results on our investor relations website at ir.roblox.com. On this call, we will make some brief opening remarks and reserve the rest of the time for your questions. For our webcast participants, please note the question icon at the bottom of your screen, where you can type in your questions. We'll do our best to take as many questions as possible in the time we have allotted today. On today's call, we may be making forward-looking statements, including, but not limited to, our expectations of business, future financial results and business, and financial strategy. Forward-looking statements are subject to risks and uncertainties that can cause actual results to differ materially from those described in our forward-looking statements, and such risks are described in our risk factors, including in our SEC filings, including our most recently filed Form 10-Q. You should not rely on our forward-looking statements as predictions of future events. We disclaim any obligation to update any forward-looking statements except as required by law. During this call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our press release issued, as well as in our supplemental slides, copies of which can be found on our IR website. Finally, this call is being webcast, and it will be archived on our website shortly afterwards. With that, I'll turn the call over to Dave. Thank you, Stefanie, and welcome, Roblox investors, Roblox community. Some quick bullets before we dive into your Q&A. We had a wonderful October, as we mentioned in our letter, $701 million bookings in Q3, up 10% year-over-year, and on a currency-adjusted basis, up 15%. Also, we've shared October 27-day numbers, so you can do compares to last year. The first 27 days of October on a bookings basis were up 13% on adjusted basis. I wanna really highlight to the Roblox community on the revenue side, where in Q3, we showed up 2% at $517 million, that we follow GAAP accounting principles, and we defer revenue over the life of our payers. In our letter, we highlighted we've increased that lifetime from 25 to 28 months. That is a very, very good thing that relates to the retention of our player bases, and we would ultimately want that number to be as large as possible, the more we retain our customer and user base. Without that increase, our Q3 revenue GAAP accounting would have been $628 million, $111 million larger. Actually watch us continue to try to increase that lifetime to increase retention. On a DAU basis in Q3, our DAUs were at 58.8 million, which is a 24% year-over-year growth rate. Highlighting October, those numbers in the first 27 days were 57.8 million DAUs, up 14% year-over-year. I wanna note we still have difficult compares relative to opportunistic regions from last year, but you're seeing our core and strategic users with the bookings start to lap COVID. Our developer community, once again, number of developers with experiences gathering over 100,000 hours, up 54%, and number of developers with experiences with over 1,000,000 hours, up 47%. A couple things for our large Roblox and investor community I really wanna highlight. As you look at our business, we run the business internally as 30 separate cohorts. That's five age ranges. We look at gender, and we also look at region around the world. We have a lot of headroom in many of these cohorts, and I'm gonna comment on that a bit. I also wanna comment that we run the company as seven product groups, and we have product groups directly responsible both for retention, for frequency, for engagement, and for monetization. I'm gonna highlight a few of those numbers as well. Well, before we even went public, we've been sharing with all of you our vision of building a platform that optimistically brings people together around the world of all ages and for a wide range of uses, including playing, learning, and working together. I'll highlight a few of those as well. Around the world, in the U.S. and Canada, we're showing 17% DAU growth in what has historically been our most early and saturated region, just showing the amount of headroom we have in our core market there. In Europe, our DAUs are up 30% year-on-year. In APAC, our DAUs are up 40% year-on-year. Talking about aging up, highlighting that our over-13 segment grew 34% and now accounts for 54% of our DAUs. Also, 17 through 24 is our fastest-growing cohort, growing at 41% year-on-year. There is a lot of room for us in both our 17 through 24 cohort as well as our 24 and up cohort. That is why, once again, we ask all of our investors to look at us as a wide range of businesses across all of these cohorts based on age and region. I also want to share some of the drivers of our business that highlight our optimism around Roblox's ultimate evolution to be a utility that is used very frequently. We started to share some signal on frequency, which is the ratio of our DAUs to MAUs, and I wanna highlight that relative to September 2019, our frequency is 20% higher, and our frequency is at or above levels we saw in 2020 and 2021 during peak COVID. The other thing I want to share, the same with engagement. Our engagement levels, which are hours relative to DAUs, are now 20% higher than pre-COVID September 2019. Slightly below peak COVID times, but in a great direction. Then finally, just highlighting the extent to which our brand experiences have started to grow and expand. We're participating with Elton John in a new persistent world called Elton John Presents: Beyond the Yellow Brick Road. That premiered last Thursday on November 3rd. I think it's just showing the extent to which Roblox brands have become really ubiquitous in the music and brand industry. Finally, we shared a lot around our product progression during Roblox Investor Day. We thank you all for participating. I wanna highlight just on one small detail, and that is we have started rolling out early versions of our immersive ad product, and we are testing now with some publishers and brands, and we will keep iterating on that. With that, I will ask Mike Guthrie if he wants to add any other comments, and if so, welcome, Mike. If not, we'll go straight to Q&A. Yeah. Thanks, Dave. I think you covered it. Those are the secular trends that we talked about in aging up our core markets and strategic markets are really, I think, some of the key financial points. Why don't we turn it over to Q&A? At this time, I would like to remind everyone, in order to ask any questions, simply press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question from the line of David Karnovsky with JP Morgan. Please go ahead. Thank you. Dave, as you noted, fastest-growing demo is 17-to-24 age cohort, was just hoping you could speak to some of the drivers of this growth. Are these lapsed players that are coming back? If not, what are the types of experiences that are bringing these new users in? One for Mike, just hoping you could remind us of your typical seasonality into year-end. I think you've seen some pretty strong step-ups in bookings the prior two years, but you know, there might have been some COVID factors that were helping with that. Just wanna get a sense of how this has looked over a longer period of time. Yeah. I wanna highlight the 17- to 24-year-old growth has been a continuous improvement over the last three to four years, and our whole stack is contributing to this. We continue to make exceptional gains in search and discovery, both cold start and warm start, which means when an older player signs up and joins Roblox, they see more and more experiences that are tailored to them. We continue to make improvements in our game engine and our cloud game engine as far as raw performance. We have made amazing improvements in our avatar stack with layered clothing and the ability for older players to more and more have avatars that they can identify with. We are seeing developers respond with more and more content that is interesting and applicable for older players. We introduced experience guidelines and shared that with you at our Investor Day, which we will start over time having some experiences that are ultimately 13- and- up and 17- and- up type experiences. This is pervasive throughout the stack, throughout the seven product groups. We really all are working on this, and it's many, many factors that have contributed to drive this growth. I'll turn it over to Mike on the seasonality. Yeah. Great. Hey, David, thanks for the question. We're in a period right now, September and October, where we are coming down off of the summer peaks in the summer, July and August. We saw that seasonality occur in September, down from August. October is pretty similar to September with a pickup then right around Halloween. We had a really strong beginning of October this year. A lot of special content around seasonal content that was quite popular. Going into the rest of the quarter, November is typically up a bit from October, and then of course, December is the big month in the fourth quarter. You know, like a lot of companies around the holidays, like for example, November, we usually see a pretty big step up around Thanksgiving, and then we're into the holiday season. December's always the biggest month by a long shot. So far, seasonality seems totally normal to us. I think what we're probably most excited about is this growth in the payer base. You saw it in the third quarter, all-time peak number of payers at 12.9 million. That's a really good signal for us. Hey, one other thing, you may have picked it up in what I just said, and I'll circle back to the aged-up growth. Thank you, Mike. As you hear how we always lead with raw product quality and virality, but I do wanna pay notice to all the wonderful brands and music producers out there, the intermediate agencies creating some of these experiences and our own brand team. That is also contributing to growth. Wimbledon, WimbleWorld, 11.8 million visits. Our Tommy Play experience, our Chipotle experience has had over 20 million visits. Our FIFA World just started, millions of visits. Our Chainsmokers Concert experience, once again, 8 or 16 million visits. There's also a lot of potential traffic being driven by our brand and music partnerships on top of the raw product virality that we focus on. Yeah. Your next question is from the line of Omar Dessouky with Bank of America. Please go ahead. Hey, guys. Wanted to ask about something I think that the market doesn't appreciate enough about how transformational limited items will be to the platform in 2023. Can you explain why it will fundamentally change behavior among users, and which of your KPIs should see the biggest inflection? Among which of your 30 cohorts do you expect to see those metrics inflect the most pronounced? I have a follow-up after that. Yeah. Mike, I'll do an early one on the cohorts. All 30 of our cohorts are doing amazingly well. Mike will comment more on that. Very early on in Roblox, we started building Roblox items with the vision that ultimately we want our user and community base to be really the provider of all UGC items, both clothing, avatar items, avatars, all of that. The final step of that we are in the process of completing is a limited marketplace. What this means is a creator such as, I'll use Gucci as an example, can be validated. They can have a blue check mark next to their profile, and if they so choose, they can make 10 of something rather than an unlimited number. Those items can be indexed, and just like in the real world where we have both high volume items, I always call white T-shirts the example of a high volume, low brand item. Just as we have that, we're moving to an economy where top brands will have limited indexed items. The items that Roblox has made, which we want our creators to make, that we've done in a limited fashion, for example, our Dominus crowns trade at $20,000 on the platform. We believe we will see similar trade value, similar things that we see in the real world with scarce items with some of these. We believe this is gonna be really fun, really good for engagement, and will ultimately expand our economy, so it does look more like the real world, and we have very high-priced items as well. The metric this affects is bookings per hour or monetization. When we affect bookings per hour, it affects the whole platform because we're driving those hours and raises monetization. I'll kick it over to Mike as to whether you wanna comment on any cohorts. Yeah. Yeah. Omar, thanks for the question. Because it's gonna be an open marketplace, I think the answer is, it's gonna be all cohorts. There will be content that is appealing to younger users and older users. I agree with Dave that you're gonna see it mostly reflected in monetization as a core metric, though I also expect frequency engagement to also move up, because it's a better experience for the user. I also believe, and something we don't talk enough about, is it will also affect both, you know, all genders as well. The cohorts, not just age cohorts, but content will be appealing to male users and female users as well. I think that's also really exciting. Yeah. One way to think about it, what cohort did this affect in the real world? Who buys high-priced jewelry, rare artwork, and Ferrari? Those cohorts, I think, will be affected on Roblox as well. Awesome. All right, looking forward to that. The second question is, you know, I wanted to ask about, you know, when some incremental revenue opportunities may hit, namely, Dynamic Heads and Game Fund. In June, I think your blog said that Dynamic Heads would be in the avatar store later this year. It's November now. You know, are you still kind of on track to have those in the avatar store this year? And if so, you know, kind of what's your monetization model there? Then on the Game Fund side, you know, I think you showed Game Fund examples throughout the year. You know, when will those start to go into soft launch? Number one. When will they launch in earnest? Number two. You know, do you expect any of them to become like top ten hits in the next year? Yeah, I can comment on a couple things. I think for our investors, I would ask you to consider Dynamic Heads as not just a monetization product, but ultimately the future of Roblox as far as immersive conversation. We're moving from a world, when we think about it, where all of the people in Roblox are primarily using text chat with static heads to the demo I showed at Investor Day, where more and more we show expression, our faces animate just like we do with our camera, and we're communicating by voice as well. We have Dynamic Heads in the catalog. The vision ultimately is everyone and every head on Roblox is dynamic, and we ultimately get to the point where everyone can animate their avatar. We've not given a specific day on this, but this is slowly rolling out and will roll out continuously over the next year. There is a blog post on our blog for those that are interested that we published at the end of September called Funding the Future of Roblox Creations that shows some of the progress in the Game Fund. I think some of these will be transformational. I don't wanna comment on which and when, but if you see the general pattern of the Game Fund experiences, you'll see they're primarily aimed at older players. Many of them involve older avatars, and many of these are getting ready to launch soon, and we have more in the hopper. I won't comment on them, but I will comment that we have some fairly seasoned developers building very professional experiences for older players. Mike, I don't know if you want to riff at all on that? No, I think that's perfect. Nothing to add. Great. Thank you. Yep. Thanks so much. Your next question comes from the line of Drew Crum with Stifel. Please go ahead. Okay, thanks. Hey, guys. Good morning. Mike, in the shareholder letter, you noted that you intend to target an EBITDA margin below 10% through at least 2023. Is there any change to what's driving that figure relative to the updates from earlier in the year? How are you viewing this metric beyond next year? Then I guess for Dave, you know, you briefly touched on the immersive advertising efforts. Any early observations you can share, and any update on how and when you intend to deploy that across the platform? Thanks, guys. Yeah. Hey, Mike, I wanted to— maybe quickly lead first on the earnings and EBITDA long term. And I know right now there are a lot of companies doing layoffs, and I want to highlight a couple unique things about Roblox. We are going to continue hiring through 2023. We have an exceptional talent base that we are constantly adding to and improving, and we are going to do this in a way that keeps really stock-based compensation in really good range. I think this highlighting our drive to continue innovating and the ability to do this with $3 billion of cash in the bank and a good forward-looking cash position in the company. We are in innovation mode. We are in thoughtful, balanced hiring and growth mode. We run the company in a very thoughtful way, looking forward, modeling forward several years in advance. Hopefully, you know, we're moving the tiller gently and thoughtfully towards driving this type of innovation. I'll let Mike comment a little bit more on the earnings as a result of that. Hey, Drew. There are really, again, four big areas of cost and investment in our business. Payment processing is one, 'cause you asked what's changing or it hasn't even changed. Payment processing has generally been coming down a little bit as a percentage of bookings, or we've been getting a little bit more efficient there, which is great. Not massive moves, but comfortable improvements over time. There's three big investment areas that Dave has really highlighted that revolve around being innovative, and that's our infrastructure and trust and safety personnel, and the investment in our developer community. All of those are. There's really nothing has changed in terms of the weighting, the emphasis, our desire to make investments in those areas, we have the ability to do it. We have a lot of liquidity. We feel like we're adding long-term value into the business. We've grown them all in really sustainable ways. We see this opportunity as one of sort of optimizing investment in the near term and coming out of this maybe after 2023 into 2024 with an ability to see real leverage in the cost structure across really almost all of these areas. Nothing has changed. We're not—what we haven't done is ramped up investment in marketing or any other things like that. User base and top line are still very much organically driven by great product and improvements in that product. We are really taking an opportunity to continue to innovate and build the best business with the most defensibility and sustainability that we possibly can. Thanks, Mike. Riffing on immersive advertising and the opportunity, one of the things we've always done at Roblox is build, you can call it UGC or self-serve, and that is build platform and products that everyone can use, and that treat all of our developers as well as all of our partners equivalent. That is the target for next year, hopefully in the first part of next year, to get this rolled out for everyone, without a specific ship date. That said, we are testing right now. We are testing our immersive advertising technology right now with some brands and with some of our developers. Testing now, next year, self-serve for everyone. Your next question is from the line of Matthew Cost with Morgan Stanley. Please go ahead. Hi, everybody. Thanks for taking the questions. I have two. So just looking at the bookings in September and October, there's a pretty meaningful acceleration going on there in terms of year-on-year growth. I'm just wondering, you know, Dave, earlier in the Q&A, you were talking about some of the, you know, platform improvements that you've been making, which make a lot of sense. Were there any specific user behaviors or types of experiences or new platform features that were kind of needle moving and behind that re-acceleration you saw in the past two months? Just separately on frequency, given that you're running kind of at levels of kind of, you know, DAU to MAU ratio that you saw during COVID, I think you said at or above, how much headroom do you see going forward in terms of boosting that ratio? Thank you. Yeah. From a product architecture and the way we work on Roblox, this is really a wide technology stack. We have amazing product and engineers working on our user experience, on our social graph, on the access points, mobile console. We have awesome people working on our growth team, search and discovery, our core creator tools, the 3D simulation engine that powers Roblox, the economy that drives not just monetization, but actually the fun on the platform, the core cloud infrastructure that supports this, and of course, the very wide-ranging safety and civility teams that make Roblox a welcoming, safe, and optimistic place. There's so much stuff going on that historically, growth has been driven not by single big needle movers, but by many needle movers, all being developed in parallel as quickly as possible. I'll highlight some of these things are things most people don't notice, including gains in the raw performance of our game engine, our kudos to the game and simulation engine team, gains to the time and how quickly people can join these experiences, which most people don't notice, but actually drive growth as well. There are a wide range of things we've really done across the platform that have improved search and discovery, have improved all areas really of the product. On frequency, I am personally so bullish, even in our core 9 through 12-year-old U.S. market around the headroom there, because I think as we saw during COVID, people used Roblox as a utility to connect and be together. People used Roblox side by side with video and phone and text as a way to hang out together. This is a utility use that goes beyond play that I think we'll see people migrating to more and more higher frequency numbers. I can't share specifically what they are, but there is a lot of headroom in U.S. 9-to-12-year-old DAUs. Matthew, it's Mike. I wanna just add a couple of things to what Dave just said. As it regards to bookings and acceleration, maybe just point you to page 27 in the supplemental materials, which is the payer community. If you look at Q2 2022 and Q3 2022, that sequential growth in payers is as high or higher than I think we've almost ever seen. So there was a big pickup in the number of payers, and we talked about the ratio of payers earlier in the call, and you can see that in the third quarter. Obviously, September is a part of that. Similarly, you would expect that we had pretty good payer numbers in October. That conversion rate is really a very good point right now, and we talked about it in the letter, earlier in the letter. There's a whole bunch of reasons for that. One is there's a very positive mix shift going on, as Dave suggested, in our core markets, U.S., Canada. We are back to peak levels in all age cohorts, and we are aging up very quickly. As the rate of number of payers, it's increasing in the U.S., in Canada. It's also increasing as a percentage in the strategic markets. Opportunistic has slowed down a little bit. They do have a little bit of a tougher COVID compare right now. The mix shift of payers is moving toward areas where there's more monetization. The one question is why are we seeing that conversion rate? For that, you have to look at our other core metrics, our frequency, our retention, and our engagement numbers, and those are all moving up as well. That impact starts at the highest level with your users and then flows all the way through until you get to payers. We're seeing improvement really across the board in all age cohorts, all demos, and more and more payers and again, very good sequential growth in payers in the third quarter. There was a question earlier around seasonality. You know, to me, that speaks to really healthy movements as we go into, you know, the rest of the season rest of the year in the fourth quarter. I really would look at that number as an output of a whole bunch of core metrics that we are focused on that start with frequency, you know, goes to engagement, goes to monetization. That conversion rate has just been. It It has really held up post-COVID at very high rates. I think that's why you're seeing that acceleration. Great. Thank you. Your next question is from the line of Clark Lampen with BTIG. Please go ahead. Hey, good morning. Thanks for the questions. I have two on the developer community and advertising. First, Mike, you talked about secular dynamics with aging up before. Are those as prevalent on the developer side such that you're bringing on more 17- to 24-year-old developers, and the content that they're creating is helping you drive, you know, what seems like a more recent inflection in growth of older users, and also monetization and payer conversion? The second question on advertising, understanding that that, you know, sort of vector of monetization is really early stage right now, we did pick up some good feedback interquarter from marketers that basically said, you know, "We'd like to spend more on Roblox over time. There's demand from our customers or from us ourselves, but one of the gating factors right now is measurement." I'm curious if building, you know, that sort of performance framework is part of the roadmap for the ads business. If so, is it possible that you could give us some color on the timeline for introducing something like that? Thank you. Dave, do you want to start off on the ads question, and I'll go back, and I'll take the first one then? I'm really excited about the potential for measurement of both brand as well as action-based type advertising here. We are gonna be providing both of those types of things. There will be two types of immersive 3D ad units on the platform, those that are brand, where we will be able to measure views, amount of dwell time, and really this is the creation of a set of new types of measurement for immersive three-sixty advertising. It's almost as if in the real world, it's really hard to measure how many people saw a billboard on a bus when it went driving by. In an immersive three-sixty world, we can actually measure how many people saw that. There's the potential in digital to measure things we can't do in the physical world. More and more of the experiences we believe in platforms like Roblox will be teleport-type ads, where brands that we highlighted today want to bring fans to their experience, even for short amount of time to experience the brand, to possibly acquire items from the brand and to pop back out and come back to where you were. These, of course, will be fully measurable as action-type units, once again, with measuring ultimately the time and the experience as well. There is an even longer term thing that we're not gonna comment on or promise, but ultimately, the ultimate long-term thing is we hear anecdotally about people who have been in our experiences, then migrating to the real world and wanting to go into that same store. We've heard that anecdotally around our Vans experience, where the ultimate would be to figure out a way to measure the players on Roblox connection to visiting that 3D experience and then visiting the real experience. There's a lot of savvy people out there starting to think about how we might do that. Yes, this will be measurable. It's early, and I think there's potential for types of engagement that just cannot be done with video, that cannot be done with print. I'll kick it back to Mike for the other piece of this. Hey, Clark. Your question on developers is a really interesting one. We are seeing a dynamic with older users wherein they are monetizing very well in what I would call the top experiences on Roblox that may or may not be aged-up experiences. However, we also see that same user base experimenting and in other experiences that are much more aged-up content. They're not the most popular experiences right now on Roblox, but they're much more aged-up experiences. In those, the older users are spending quite a bit more. Now, it's early and it's on a smaller base, but that indicates to us that the older users have a really high affinity for aged-up content. Our belief is, of course, that most of that aged-up content is also coming from an aged-up developer community. To answer your question, I don't know. I don't have numbers specifically with the same level of precision on growth rates, but I suspect they're pretty similar. We're seeing more and more, you know, aged-up content that's starting to break through. I think there's a long way to go there. We'll try to pull together some metrics that we can share on that. We definitely see that behavior with our older DAUs and time spent. They're finding cool aged-up experiences, and they're very engaged, and they monetize very well in those experiences, and those are gonna get bumped up over time. Again, there's almost no doubt those are coming from an older developer base. Yeah. I think Roblox long term combines the best of long tail discovery, young developer starting out as a hobbyist. On the high end, though, as our larger studios go beyond 100 people and are earning tens of millions of dollars a year, I think the top developers ultimately and very quickly near top game developers on any platform or experienced developers, we're seeing that mature very quickly. Thank you. Your next question's from the line of Eric Sheridan with Goldman Sachs. Please go ahead. Thanks so much for taking the questions. Sticking with the theme of aged-up cohorts, do you see different behavior by geography in aged-up cohorts? I'm curious if you do, how that informs elements of what you want to invest in the infrastructure or the product development over the long term. Even away from just geographic skew among aged-up cohorts, any sense of how you continue to think about partnerships on the content side and bringing more original content into the platform that can be consumed via partnership or licensing over time to sort of drive higher forms of engagement as well? Thanks so much. Yeah. I feel as if we're doing our job right, we are building high-performance immersive 3D infrastructure as a utility that then pulls with amazing search and discovery and an amazing creator base. Just as with other forms of immersive media, of which we're very immersive, but whether it's video, print or whatever, we're providing a high-performance platform in all regions of the world that our developer community can respond to more than we respond to technically. We, you know, we focus very much on what's latency in India. We have a new data center in India. Do we have edge data centers around the world to provide high performance? Are we doing awesome search and discovery in South Korea or Japan or India to help drive growth there? Well, what we can see is when we go to various regions around the world, a mix of what we would expect, some classic Roblox experiences top in many, many countries, using our dynamic translation facility, but also regional experiences, just as we would expect in various countries. I think this is what philosophically is driving our growth in Japan now, which is driving our growth in India right now, which is our awesome infrastructure coupled with great, really content from our developers. From a partnership standpoint, our goal is to make this self-serve. Our goal is to make it so developers can couple with brands, and we're seeing more and more partnerships on the platform that we have not been involved with, which is exactly where we would ultimately want to get to, which is the spontaneous partner ecosystem. Kicking to Mike, if you wanna add anything on the partnerships, Mike. Not on the partnerships, but on Eric, your question on aged-up. I just wanna make sure I've got it right. You're saying by geography, do we notice any different behavior with aged-up users across the geos? Meaning, does an aged-up user, a 17- to 24-year-old user, in the U.S. behave differently than in Germany? Is that what you're asking? Yeah. That's part one. If so, does that inform any elements of how you think about product development or platform development over the long term? Yeah. I would. Basically, by geography, what we're seeing is similar in each geo. Meaning aged-up users are now engaging at basically the same rates, if not even higher in some cases than younger users. They're monetizing now at higher rates than younger users, and that's pretty consistent around the world as we look at it. We're seeing the same kinds of dynamics within each geo. If I were to say an aged-up user in the U.S., the rate of monetization of an aged-up user somewhere else in the world is about the same as it is with a younger user. It's pretty similar. Within a demo, aged-up user is now pretty much the same frequency, pretty much the same amount of engagement and higher monetization. Yeah. Maybe a philosophical way of thinking about this is if we saw different behaviors with aged up people in Germany relative to the US, we would take a look at that and build platform infrastructure that supported both of those so that our developers could respond to the differences rather than us having to split the platform. We're always trying to build a worldwide utility that works in all regions. Okay. We have time for one more question, and then obviously we're gonna be available, you know, for the rest of the day. Thank you. Operator. Final question. Thank you. Today's final question will come from the line of Matthew Thornton with Truist Securities. Please go ahead. Hey, good morning, David, and good morning, Mike. Maybe two, if I could. First, Mike, on expenses, as we think about 2023, I mean, should we go back and look at kind of what the OpEx-centric lines have done in terms of sequential dollar growth over the past four quarters and kind of extrapolate that forward? Similarly, should we look at kind of where we are right now when we look at the two more variable type lines, and again, kind of assume that we kind of hold there through next year? Is that a reasonable framework to thinking about the expense base and expense investments through 2023? Then just second question, more on just what you're seeing from a macro perspective. Just kind of curious, you guys have a global footprint. I'm kind of curious what you're seeing, if anything, in terms of any type of changing behavior as macro's got a little more challenging, specifically in certain regions and perhaps certain demos. I'm kind of curious what you're seeing, if anything. Thanks again, guys. Hey, Matt. I mean, again, let me just sort of, I'll point people to the supplemental materials. Looking at pages nine through 12, those are the big cost items. Cost of revenue as a percentage of bookings, or payment processing fees as a percentage of bookings has generally been flat to down. I think flat is a good way to model it. We hope to see a little more efficiency. Prepaid cards have definitely helped us take that number down, and we are growing our prepaid card business. There's a lot of demand for it out there. It's done incredibly well, and it's a really efficient channel for us, so that could help us lower that cost over the next, you know, few quarters in 2023. Developer exchange fees have been running 22%-23% of bookings. We're not looking for leverage in this area right now, so I would suspect they will stay in this range throughout 2023, and if they went up a point or two, we would be okay with that. But flat's probably a good way to estimate it. Personnel costs, exclusive of stock comp as a percentage of bookings, you know, the last few quarters, this number's been going up as we have been hiring and investing. I think it'll hold at around the 2Q, 3Q numbers for most of the year. While we are gonna continue to hire, as Dave has mentioned, we're probably not quite at the same rate of hiring next year, but we're adding quite a few people into the company. I think as a percentage of bookings, that number will be closer to what you see in Q2 and Q3. In terms of infrastructure, trust and safety, we've made a really healthy investment here over the last three quarters. There will be leverage in this number eventually. I wouldn't look for too much of it in 2023. We're still making significant investments, but we're also, you know, with all of our teams, pushing to make sure we're doing things in the most efficient way possible. I think if you model it out where the last couple of quarters have been, you're probably in pretty good shape. As it relates to the macro, I'll start, and if Dave has any other comments, you know, other than the fact that obviously currencies continue to move against the dollar, when we look underneath the currency changes around the world, we're seeing really healthy behavior. Users are growing around the world. Hours of engagement are growing around the world. Our retention looks good. Our conversion rates look very good. Pure monetization around the world looks quite good when adjusted for those currencies. I would say, you know, we all know the macro environment is a little bit challenging. Where it is most pronounced for us is translation of currencies back into dollars. But overall, the behavior of the user base seems fairly healthy. I wouldn't say we've seen anything significant. I don't know, Dave, if you have anything to add to that. We're gonna wrap really quickly. I'm gonna add two lightning bullets. One, if you re-watch our Investor Day, you'll see a wonderful presentation on how our infra ultimately is moving to active-active, and there'll be amazing leverage there. We're right now doing a 2-to-1 infra build, and as that gets to 4-to-3 and 5-to-4, you'll see amazing cost savings there. I think long term, also, we pay all of our wonderful engineers and product people in U.S. dollars right now, so you'll see a long-term, you know, move from us just to make sure we're absolutely tightening up exchange rates in our platform when we collect Robux as well around the world. I'm feeling very positive about the macro trends that we see around the world on the platform. Yeah, just on the infrastructure spending, since Dave brought it up, we will spend a little over $300 million on PP&E this year. The lion's share of the big infra investment is done this year, although we'll spend another $300 million next year. There'll be a little bit of a shift. A little bit less of that will be on infrastructure, and a little bit of incremental will be around real estate. We are still growing. We're moving into some new offices, so we have modeled in some investments in real estate. Overall, PP&E will be basically flat year-over-year, but the amount that's around infrastructure will actually be down next year as we have taken most of that this year. That's great color. Thanks, Mike. Thanks, Dave. Okay. Operator, I think we are ready to wrap up. Dave, any closing comments? No, just once again, thank you to the Roblox community, all of our wonderful investors. We love working with you and appreciate your support. Thank you, everyone. That does conclude today's conference call. Once again, thanks for your participation, and you may now disconnect.