Roblox shares plunged more than 16% after the gaming platform fell short of Wall Street’s bookings and daily active user estimates.
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.
In an earnings release, CEO David Baszucki said 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 San Mateo-based company, which relies mainly on content and games created by its users, soared in popularity in the depths of Covid-19, especially among younger generations.
Shares 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.
