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Roblox Revenue Growth Slows, Bookings Decline Expected

Wall Street Journal US Business •
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Roblox anticipates a slowdown in revenue growth and a decline in bookings for the current quarter. This shift is attributed to strategic changes on its platform focused on safety and discovery, alongside significant investments in artificial intelligence.

The videogame company has also opted to provide only quarterly guidance, moving away from its previously planned full-year outlook. While Roblox maintains its long-term revenue growth expectations, it acknowledges that the path forward will not be linear due to business variability and the timing of its investments. The company stated in a shareholder letter that annual guidance is no longer considered a helpful tool for investors.

For the current quarter, Roblox projects revenue to rise between 4% and 10%, a notable deceleration from its recent double-digit growth. This is expected to result in revenues between $1.41 billion and $1.49 billion. Conversely, bookings are forecast to decrease by 14% to 18%, with an estimated range of $1.58 billion to $1.65 billion.