Roblox Forecasts Subpar Bookings, Raising Slowdown Concerns
Roblox Corporation (RBLX) projected 2025 bookings below market expectations, sparking apprehension about the gaming platform's growth trajectory. Shares plummeted 26% in premarket trading.
The company anticipates bookings between $5.20 billion and $5.30 billion, below estimates of $5.27 billion. These figures align with Electronic Arts's lackluster outlook, fueling worries about the industry's health.
However, Roblox's forecast suggests a third consecutive year of approximately 20% bookings growth. "We outpace the overall gaming market," said outgoing CFO Michael Guthrie, noting the industry's modest 2.1% growth in 2024 (per Newzoo).
Roblox's expansion into new genres and revenue streams has contributed to its rapid rise. Additionally, user-generated content and the free-to-play model have shielded the company from broader industry slowdown.
Despite these factors, daily active users (DAUs) declined slightly to 85.3 million in Q4 2022 (down from 88.9 million in Q3). Bookings of $1.36 billion in Q4 also fell short of expectations ($1.37 billion).
Guthrie attributed the setback to challenging year-over-year comparisons and the suspension of Roblox in Turkey due to safety concerns. This issue has been a persistent headache for the platform, leading to lawsuits and scrutiny.