(Bloomberg) -- Roblox Corp. shares dropped as much as 20%, the biggest intraday decline since May, after the video-game platform reported daily active users for the fourth quarter that fell short of analysts’ estimates.
The number of daily active users fell 4% from the previous quarter to 85.3 million in the three months ended Dec. 31, versus Wall Street forecasts for 88.4 million. Overall player engagement declined 9.7% from the third quarter to 18.7 billion hours.
Chief Financial Officer Mike Guthrie said on an earnings call on Thursday that growth in Eastern Europe was “quite a bit slower” driven, in part, by the company’s August ban in Turkey over child safety concerns — a move Roblox has appealed. He said it was “the first full quarter where Turkey has been off.”
The San Mateo, California-based company said bookings, a measure of sales, came in at $1.36 billion, falling short of forecasts for $1.37 billion.
The company, which lets third parties create games in exchange for a share of revenue, has grown dramatically in recent years. This week, its most popular game was acquired from the mystery developer who created it.
Roblox shared a record $281 million with its game developers in the quarter, which Chief Executive Officer David Baszucki said on the call Thursday is a reflection of the company’s commitment to moving money through the platform to creators.
Roblox has also faced criticism that it isn’t doing enough to keep predators from connecting with its young players online. Last year, the company introduced new rules including preventing kids under 13 from accessing games designed just for socializing.
The company projected full-year bookings for 2025 of between $5.2 billion and $5.3 billion.
(Updates with share price drop and comments from company executives. A previous version of the story corrected the company’s projected 2025 bookings.)
©2025 Bloomberg L.P.
