Roblox CFO clarifies adjusted EBITDA vs. Street estimates

On the Q4 earnings conference call, Roblox CFO Michael Guthrie clarified the company’s guidance, particularly the adjusted EBITDA guidance vs. Street estimates. Guthrie said that this quarter, Roblox is guiding to adjusted EBITDA of and that calculation differs from “covenant adjusted EBITDA, what most of you are referring to.” The executive added that “Many of you in your margin expectations for Q4, we’re at about 18%. We generated about 23%. And for us, that compares to 20.3% last year. So it was about a 270 basis point increase in the fourth quarter.”