Roblox faces major setback as daily users fail to grow

Roblox, an online game platform that allows users to program and play games developed by themselves or other users, has taken a significant hit in its shares.

The gaming platform faced a dip of 11% in its shares after falling short of Wall Street’s bookings and daily active user estimates.

Its shares suffered the biggest loss since May 2024.

Roblox earned $1.36 billion in bookings for the fourth quarter, just under the $1.37 billion forecast.

Although the daily active users hit 85.3 million, leading to a 19% increase, it was still lower than the expected number 88.2 million.

The company forecasted 2025’s bookings to be between $5.20 billion and $5.30 billion, quite close to FactSet’s $5.30 billion estimate.

In an earnings report, CEO David Baszucki highlighted Roblox’s commitment to investing in and improving its virtual economy, app performance, AI-powered discovery and safety, to support creators, as well as make the user experience smoother.

The company’s earnings released as the industry goes through a tough time. Electronic Arts recently lowered its predictions due to slow sales in its soccer franchise, alongside other games.

On Tuesday, EA reported a 6% decline in net bookings from last year.