Roblox Stock Plummets 20% Following Mixed Q4 Earnings Report
Roblox Corporation (NYSE: RBLX) saw its stock price plummet by as much as 20.3% on Thursday following the release of its fourth-quarter earnings report. The significant drop came as investors reacted to mixed results and concerns about the company’s user growth.
The gaming platform’s Q4 earnings report included soft guidance for 2025, which contributed to the stock’s decline. Roblox projected 2025 bookings between $5.20 billion and $5.30 billion, with the midpoint falling below average analyst expectations.
A key metric that disappointed investors was the decrease in daily active users, which fell to 85.3 million from 88.9 million in the previous quarter. This decline raised concerns about the company’s growth trajectory, particularly as Roblox is not yet profitable and Wall Street’s primary focus remains on growth metrics.
The deceleration in growth, as opposed to acceleration, appears to have unsettled investors. Market analysts suggest that the decrease in users may be linked to Roblox’s efforts to remove bots and inactive accounts from its platform.
Bloomberg Intelligence analysts noted that the decline in daily active users might be related to Roblox’s cleanup of inactive accounts and bots. This cleanup followed claims from the short-selling firm Hindenburg regarding inflated user growth and child safety issues on the platform.
As the market continues to digest the earnings report, all eyes will be on Roblox’s ability to reignite user growth and meet its projected bookings for the coming years.
