Overview
- Roblox projected third-quarter bookings of $1.58 billion to $1.65 billion, marking the first year-over-year bookings decline in the company's history and prompting it to withdraw full-year guidance.
- The market reacted sharply, with shares falling nearly 27% in a single session and about $9 billion in market value erased following the July 31 earnings and guidance update.
- Company changes made in April routed users toward retention-focused games and tightened age verification, which analysts say shifted players away from fast-monetizing viral hits and slowed new sign-ups.
- Roblox still reported growth in headline metrics — revenue rose about 36% year-over-year and daily active users reached 123 million — but bookings, which measure near-term player spending, came in at $1.557 billion and landed at the low end of guidance.
- Analysts cut ratings and price targets, with Deutsche Bank lowering Roblox to Hold and setting a $38 target, and investors will watch U.S./Canada spending per hour, bookings per hour, age-verification progress, and creator monetization to judge whether retention changes convert to future revenue.