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Roblox Corporation (NYSE: RBLX) rattled investors after the online game platform reported a decline in daily active users leading to concerns about the platform’s growth trajectory. As of December 31, 2024, DAUs stood at 85.3 million down from the previous quarter’s 88.9 million.
Even though year-over-year bookings rose 21% to $1.36 billion, the figure missed analysts’ expectations of $1.37 billion. The company also projected annual bookings for 2025 between $5.20 billion and $5.30 billion.
David Baszucki, founder and CEO of Roblox tried to put a positive spin on the results. “Roblox had a strong 2024, driven by our commitment to innovation and community. We’re building a platform that goes beyond technology—it’s about fostering genuine connections. As we aim to support 10% of the global gaming content market, we’ll continue investing in our virtual economy, app performance, and AI-powered discovery and safety, empowering creators and enhancing the user experience,’ he shared in a press release statement.
While analysts believe that Roblox is still poised for growth, investors want to see strategic initiatives that will boost engagement and accelerate bookings.
Roblox stock fell 13% to trade at $65 a share. The stock is trading around $40 a share a year ago.
