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Roblox has released its financial performance report for the fourth quarter of 2024, revealing modest gains during the holiday season that fell in line with expectations but did not surpass forecasts. The company has also shared its outlook for 2025, indicating a more conservative growth trajectory than previously anticipated. This guidance suggests lower growth rates in the latter half of the year compared to the first, which has led to a decline in the company’s stock prices.
The report highlights an increase in both bookings and revenue, with figures reported at $1.36 billion and $988 million, respectively. However, Roblox is also facing a consolidated net loss of $221.1 million. Year-over-year comparisons show some positive results, yet quarter-to-quarter changes reveal challenges. The platform boasted 85.3 million daily active users (DAUs) in this quarter, up 19% from the previous year, but down from 88.9 million in the third quarter. Furthermore, user engagement saw a decrease, with hours logged dropping from 20.7 billion to 18.7 billion between quarters.
Michael Guthrie, the Chief Financial Officer of Roblox, explained in a recent earnings call that the slight shortfall in user count was attributed to slower-than-anticipated growth in Eastern Europe, particularly due to restrictions in Türkiye. Analysts had expected the DAU figure to exceed 88 million, making the actual number particularly disappointing.
Roblox’s vision of the future
In its communication to shareholders, Roblox elaborated on its strategic initiatives aimed at enhancing trust and safety, developing artificial intelligence capabilities, and expanding genres within its ecosystem. These focus areas are interconnected, with several of the proposed tools being driven by AI technology.
The company also provided financial guidance for the upcoming first quarter of 2025 and for the fiscal year. For Q1, Roblox anticipates revenues ranging from $990 million to $1.01 billion and bookings between $1.12 billion and $1.15 billion. For the entire fiscal year, revenue projections are set between $4.25 billion and $4.35 billion, with bookings anticipated to fall between $5.2 billion and $5.3 billion. According to a report by Reuters, these figures are slightly below market expectations, contributing to the recent drop in share prices.
Roblox CEO Dave Baszucki remarked, “Roblox had a strong 2024, driven by our commitment to innovation and community. We’re building a platform that goes beyond technology—it’s about fostering genuine connections. 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.”
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venturebeat.com