> When a user buys $30 in Robux, the platform’s virtual currency, Roblox recognizes $30 in bookings. An average of $3 of that $30 is spent on a “consumable” (i.e., a single-user or otherwise perishable good), and so Roblox recognizes that $3 as revenue right away. The remaining $27 is spent on “durable” goods such as an avatar. As an avatar can and often will be used over time, Roblox recognizes this revenue over the average lifetime of a Roblox user
I'm not sure if I'm understanding this point correctly. From my understanding, wouldn't roblox consider their revenue in a given month to be 1/9th of this months purchases + 1/27th of last month's purchases + ...
If so, why would their revenue recognition make them unprofitable? Every month they only realize 1/9th of revenue from that month, but that would be offset by the other 8/9ths of revenue coming from the last 27 months. Wouldn't it just make their recognized revenue a frontloaded rolling average?