Why Roblox Stock Is Tumbling After Earnings

Roblox ( RBLX ) shares swooned Thursday after the company reported fewer-than-expected users in the fourth quarter.

The online game platform had 85.3 million average daily active users in the period, up 19% year-over-year but below the analyst consensus of 88.3 million. Roblox bookings, essentially sales of the platform’s virtual currency, rose 21% to $1.36 billion, also missing expectations.

Revenue grew 32% to $988.2 million, beating expectations, and the company's net loss narrowed to $219.6 million, or 33 cents per share , from $323.7 million, or 52 cents a share, a year earlier, also better than analysts had forecast.

Full-Year Net-Loss Forecast Exceeds Estimates

Looking ahead, Roblox forecast 2025 revenue between $4.25 billion and $4.35 billion, in line with analyst expectations of $4.29 billion. The company expects a net loss for the full year between $995 million and $1.07 billion, the midpoint of which was well above the analyst consensus of $927.2 million.

Chief Executive Officer David Baszucki said Roblox plans to invest in " AI -powered discovery" as it attempts to support "10% of the global gaming content market."

Shares of Roblox were down nearly 14% to $65.06 on Thursday afternoon. But the stock has gained 60% of its value over the past 12 months.

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