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Roblox slashes annual bookings forecast as new safety features take their toll
Roblox said age-gating and expanded monitoring reduced communication and sign-ups, while first-quarter daily active users reached 132 million.
- Roblox cut its annual bookings forecast on Thursday to $7.33 billion to $7.6 billion, down from $8.28 billion to $8.55 billion, sending shares down over 18 per cent in extended trading.
- Safety initiatives, including age-gating launched in January, caused "greater-than-expected headwinds" by restricting on-platform communication and slowing new user acquisition, C-suite said on Thursday's earnings call.
- First-Quarter revenue reached $1.73 billion, narrowly beating analysts' estimates of $1.72 billion, though second-quarter bookings are forecast between $1.55 billion and $1.61 billion, below estimates of $1.83 billion.
- "Part of what we're rolling out with age check, we believe, is the real, right long-term way to build this platform," CEO David Baszucki said Friday on CNBC's "Squawk Box."
- Facing over 140 lawsuits in Federal Court, Roblox announced expanded parental controls and rollout of Roblox Kids and Roblox Select this June, following $23.2 million settlements with Alabama and West Virginia.
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BofA Slashes Roblox Price Target From $165 to $48: Is the Roblox Growth Story Permanently Broken?
The post BofA Slashes Roblox Price Target From $165 to $48: Is the Roblox Growth Story Permanently Broken? appeared first on 24/7 Wall St.. Quick Read Bank of America cut its Roblox (RBLX) stock price target to $48 from $165 and downgraded shares to Neutral, citing mandatory age verification and algorithm changes damaging engagement. JPMorgan reduced its Roblox stock price target to $50 from $75, and Morgan Stanley trimmed to $62 from $140 bu…
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Coverage Details
Total News Sources16
Leaning Left2Leaning Right0Center5Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
L 29%
C 71%
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