RBLX Stock Recent News

Video game giants Electronic Arts Inc (NASDAQ:EA), Roblox Corp (NYSE:RBLX), and Take-Two Interactive Software, Inc (NASDAQ:TTWO) are filing in and out of the earnings confessional.

Shares of video game platform Roblox (RBLX -13.34%) crashed on Thursday after the company reported financial results for the fourth quarter of 2024 that exceeded expectations. Yes, financial results were better than expected, but investors are nonetheless worried about some trends in the business.

Roblox Corp (NYSE: RBLX) is taking a big hit today after reporting a sequential “decline” in the one metric that matters the most to its investors – average daily active users. The video game platform ended its fourth financial quarter with 85.3 million DAUs, down from 88.9 million in Q3.

Roblox stock is down Thursday after the gaming company came up short on key metrics for its fourth quarter. Here's what you need to know.

Roblox Corporation (NYSE:RBLX ) Q4 2024 Earnings Conference Call February 6, 2025 8:30 AM ET Company Participants Stefanie Notaney - Senior Director, Financial and Corporate Communications David Baszucki - Founder and Chief Executive Officer Mike Guthrie - Chief Financial Officer Conference Call Participants Omar Dessouky - Bank of America Cory Carpenter - JPMorgan Clark Lampen - BTIG Matthew Cost - Morgan Stanley Ken Gawrelski - Wells Fargo Brian Pitz - BMO Capital Markets Operator Good morning. My name is John and I will be your conference operator today.

Here's our initial take on Roblox's (RBLX -12.73%) fourth-quarter financial report.

Roblox Corporation shares dropped over 20% post-Q4 earnings due to softer DAU trends and below-consensus FY 2025 booking projections, despite meeting guidance. Roblox reported 20% YoY booking growth in Q4, with profitability exceeding expectations and significant margin expansion, indicating strong underlying fundamentals. FY 2025 bookings guidance suggests 20% YoY growth, aligning with management's medium-term goals, though it fell short of lofty analyst expectations.

Wedbush's Michael Pachter turns to the gaming space with Roblox's (RBLX) market plunge. He points to waning users and hours played as culprits behind the selling action but says the company otherwise remains healthy.

Is it game over for video game and metaverse company Roblox? Not quite.

While the top- and bottom-line numbers for Roblox (RBLX) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.