RBLX stock plummets 20% after Roblox misses target for daily active users

Roblox shares dropped as much as 20% on Thursday after the gaming company reported disappointing fourth quarter results in bookings and daily active user figures, creating fear that the growth in the gaming platform is slowing after years of progress.

Roblox reported bookings of $1.36 billion for the fourth quarter, missing the expected $1.37 billion that was predicted by analysts polled by LSEG. Daily active users fell to 85.3 million in the fourth quarter, compared with 88.9 million in the third quarter. Hours totaled on the platform also fell in the fourth quarter, to 18.7 billion from 20.7 billion in the previous quarter.

The company did report revenue up 32% year-over-year, and a 21% year-over-year growth in bookings. But despite the fact that Roblox is set to achieve its third consecutive year of around 20% growth in bookings, the gaming platform’s fourth quarter report left investors disappointed with its modest projections falling below estimates. Roblox forecasted annual bookings between $5.20 billion and $5.30 billion, with the midpoint slightly below market expectations of $5.27 billion.

The company reported a consolidated net loss of $221.1 million in Q4, and a full year net loss of $940.6 million.

As a response to these challenges, the gaming service plans to develop enhancements to its platform and bring them to the market in a timely manner, according to a press release from the company.

In the earnings release, CEO David Baszucki said, “As we aim to support 10% of the global gaming content market, we’ll continue investing in our virtual economy, app performance, and AI-powered discovery and safety, empowering creators and enhancing the user experience.”

Roblox said in a letter to shareholders that it expected first-half growth to be stronger than second-half growth. The company noted that it is “working diligently on several initiatives” that can increase growth in the back half of 2025.