Roblox shares plunged 11.1% after the gaming platform fell short of Wall Street’s bookings and daily active user estimates.
The stock posted its worst day since May 2024.
Roblox reported bookings of $1.36 billion for the fourth quarter, versus the $1.37 billion expected by analysts polled by LSEG. Daily active users came in at 85.3 million, reflecting 19% growth from a year ago. However, the figure came up short of a StreetAccount estimate of 88.2 million.
The company said it anticipates bookings to range between $5.20 billion and $5.30 billion for 2025, compared to a $5.30 billion FactSet estimate.
CEO David Baszucki said in an earnings release that the company would continue to invest in its virtual economy, app performance and “AI-powered discovery and safety, empowering creators and enhancing the user experience” in the new year.
The results from Roblox come amid a rocky stretch for the industry. Video game developer Electronic Arts cut its forecast last month due to slowing sales in its soccer franchise, among other games. In its earnings release Tuesday, the company showed a 6% decline in net bookings from a year ago.
Roblox, which relies mainly on content and games created by its users, soared in popularity in the depths of the Covid-19 pandemic, especially among younger generations.
Shares of the San Mateo-based company went public on the New York Stock Exchange in March 2021 and closed at $69.50, or a roughly $38 billion market cap. With Thursday’s moves, the stock sits nearly 53% off of its all-time closing high reached in November 2021.
