Roblox Shares Plummet 26% on User, Booking Miss

Roblox Corporation's recent earnings report revealed a decline in daily active users and bookings, prompting a significant drop in its stock price, which fell as much as 30% in premarket trading. The platform reported 85.3 million daily active users for the fourth quarter, missing analyst estimates of 88.4 million, and bookings of $1.36 billion, slightly below the expected $1.37 billion. The company also projected 2025 bookings between $5.2 billion and $5.3 billion, which is below market expectations, raising concerns about its growth trajectory amid a broader slowdown in the video game industry. Despite these challenges, outgoing CFO Michael Guthrie noted that Roblox is still growing at a rate above the overall gaming market, which saw only a 2.1% increase in 2024. The decline in users has been attributed to tough year-over-year comparisons and a suspension in Turkey due to safety concerns. Analysts continue to express worry regarding Roblox's ability to sustain growth as it aims to reach 1 billion users.