Roblox shares fall 20% after lower-than-expected user growth
Roblox Corporation's shares fell 20% after its fourth quarter financial report showed that the number of daily active users (DAUs) was lower than expected. The company reported 85.3 million DAUs for the quarter ended 31 December 2024, up 19% year-on-year but below the 88.4 million it had forecast. Player engagement also decreased by 9.7% to 18.7 billion hours.
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In financial terms, Roblox received $1.36 billion, which is 21% more than last year, but slightly below the forecasted figure of $1.37 billion. The company forecasts order intake of $5.2-$5.3 billion for 2025, which indicates a slower growth of 20% compared to 24% in 2024.
Chief Financial Officer Mike Guthrie noted weaker growth in Eastern Europe, partly due to the suspension of Roblox in Turkey due to child safety concerns. This was the first full quarter to reflect the impact of the ban.
Despite the challenges, Roblox paid out a record $281 million to developers, reinforcing its commitment to the creator community. CEO David Baszucki confirmed plans to invest in the platform's virtual economy, app performance, and AI-driven features.
Source: Eurogamer
