Roblox publishes average Q4 profits; Shares prices drop over 20%

Roblox Today, it publishes its financial results for Q4 2024. The company’s report as a whole shows modest growth during the festive season, but not something that exceeds one’s predictions. He also published his predictions for 2025, and his expectations were more sophisticated than expected earlier. His management shows that the company expects more growth in the second half of the year than the first, which was obviously disappointing enough to lead to a decrease in its shares.

According to the report, reservations and revenue increased by $ 1.36 billion and $ 988 million respectively. His consolidated net loss is $ 221.1 million. Some of the company’s results were favorable during the year, but not necessarily from a quarter to a quarter. Roblox’s daily active users were 85.3 million during this quarter, which is 19% compared to the year. However, the platform had 88.9 million in the Q3 this year. In the same way, his hours have fallen from 20.7 billion to 18.7 billion quarter.

Michael Gutri, Roblox Financial Officer, noted when a profit call that one of the reasons the number of the user is not as high as it was expected – According to BloombergAnalysts have provided over 88 million DAU – is that the Eastern European audience is growing more slowly than expected, as the platform is prohibited in türkiye.

Roblox’s vision for the future

In his letter to shareholders, Roblox outlined his plans to improve in several key areas, including trust and safety, artificial intelligence and expansion of the genre. The areas overlap with each other, with several of the mentioned instruments powered by AI.

Roblox also provided its guidelines for the upcoming Q1 2025 quarter, as well as for this fiscal year as a whole. During the Q1, he expects revenue between $ 990 million and $ 1.01 billion and reservations between $ 1.12 billion and $ 1.15 billion. For the year, it generally expects revenue between $ 4.25 billion and $ 4.35 billion and reservations between $ 5.2 billion and $ 5.3 billion. According to a Reuters report, they are slightly below the ratings that sent Roblox’s stock prices until they were discovered.

Roblox CEO Dave Bazuki said in a statement: “Roblox has a strong 2024, led by our commitment to innovation and community. We are building a platform that goes beyond technology – it is to promote real connections. As we strive to maintain 10% of the global game content market, we will continue to invest in our virtual economy, the performance of the application and the opening of AI for power and safety, empowering the creators and improving the consumer experience. “