Roblox’s recent financial report, for the quarter ending on June 30, highlights a continued pattern of revenue growth coupled with increased net losses. The report also brings attention to a 25% year-over-year rise in daily active users (DAUs), reaching 65.5 million, a step closer to the goal of 1 billion daily players.

“Given the geographic and age diversity of our user base, along with investments in our product, we are confident that we are building a platform that could, over time, grow to support one billion DAUs,” the company said in a shareholder letter accompanying the earnings.

However, user conversion remains a challenge, as the average bookings per DAU dipped by 3% to $11.92, marking the seventh decline in this metric out of the last eight quarters.

Throughout 2023, Roblox continues to solidify its role as a virtual hub for real-world businesses and brands. In February, Dave & Buster’s “announced its entry into the metaverse,” introducing “multi-user experiences that enable friends to play together and connect in innovative ways.” Similarly, in January, H&M made its virtual mark with H&M Looptopia, an interactive space where players experiment with materials and designs to craft virtual garments for their avatars.

This year also saw adjustments in Roblox’s advertising policies, including the concealment of ads for users under 13 and a ban on ads for insect body parts.