ROBLOX SECTIES FALL ON Daily Active Users, Bookings Miss

On February 7, 2025By Littum

(Bloomberg) -ROBLOX CORP shares fell as much as 20%, the largest intraday reverberation since May, after the video game platform reported daily active users in the fourth quarter who fell under the analysts’ estimates.

The number of daily active users fell 4% from the previous quarter to 85.3 million in the three months ended December 31 against Wall Street forecasts for 88.4 million. The total engagement of the player fell 9.7% from the third quarter to 18.7 billion hours.

Chief Financial Officer Mike Guthrie said on a revenue call on Thursday that growth in Eastern Europe was “quite a little slower” driven, partly, by the company’s August ban in Turkey over children’s security problems – a step that Roblox has appealed. He said it was “the first full quarter when Turkey has been gone.”

The San Mateo, California-based company said bookings, a target for sales, came in at $ 1.36 billion, and lacked forecasts for $ 1.37 billion.

The company, which lets third parties create games in exchange for a proportion of revenue, has grown dramatically in recent years. This week, the most popular game was acquired from Mystery Developer that created it.

Roblox shared a record $ 281 million with its game developers in the quarter, as CEO David Baszucki said on the call on Thursday is a reflection of the company’s commitment to move money through the platform to creators.

Roblox has also been criticized for not doing enough to prevent predators from connecting with its young players online. Last year, the company introduced new rules, including the prevention of children under 13 in accessing games designed just for socialization.

The company projected bookings for year -round bookings for 2025 of between $ 5.2 billion and $ 5.3 billion.

(Updates with stock prices and comments from business leaders. An earlier version of the story corrected the company’s projected bookings from 2025.)