Roblox Shares Drop Sharply After Missing Key Bookings and User Growth Targets

The gaming platform reported lower-than-expected Q4 bookings and daily active users, raising concerns about slowing growth despite ongoing investments in innovation.

Roblox reported Q4 bookings of $1.36 billion, slightly below analysts' expectations of $1.37 billion, and daily active users of 85.3 million, missing the 88.2 million estimate.
The company provided a 2025 bookings forecast of $5.20 billion to $5.30 billion, which fell short of market expectations at its midpoint.
Roblox's stock plunged over 16% in response to the earnings miss, with premarket trading showing a decline of up to 26%.
The company attributed slower growth to tough year-over-year comparisons, including a surge in 2023 from its launch on Sony's PlayStation and the suspension of its platform in Turkey.
Roblox continues to invest heavily in its virtual economy, AI-powered discovery, and user safety, aiming for sustained growth and broader appeal beyond its youth-centric audience.

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