Roblox today announced its financial results for Q4 2024. The company’s report shows moderate growth during the holiday season, in line with expectations. Looking ahead to 2025, the company’s projections are more conservative than previously anticipated. The guidance indicates lower growth in the second half of the year, which has led to a decline in the company’s shares.
According to the report, both bookings and revenue saw an increase, reaching $1.36 billion and $988 million, respectively. However, the consolidated net loss stands at $221.1 million. Some metrics show positive year-over-year trends, although not necessarily quarter-over-quarter. Roblox’s daily active users for this quarter were 85.3 million, up by 19% from the previous year. However, there were 88.9 million users in Q3. Similarly, the total hours engaged decreased from 20.7 billion to 18.7 billion quarter-over-quarter.
During an earnings call, Roblox CFO Michael Guthrie mentioned that the user count did not reach the expected levels due to slower growth in the Eastern European audience, particularly because the platform is banned in Türkiye.
Roblox’s Vision of the Future
In a letter to shareholders, Roblox outlined its plans for improvement across various key areas, such as trust and safety, artificial intelligence, and genre expansion. These areas are interconnected, with many of the tools mentioned being AI-powered.
Roblox also provided guidance for Q1 2025 and the fiscal year as a whole. For Q1, revenue is expected to range between $990 million and $1.01 billion, with bookings between $1.12 billion and $1.15 billion. For the full year, revenue is projected to be between $4.25 billion and $4.35 billion, with bookings in the range of $5.2 billion to $5.3 billion. These figures, slightly below estimates, caused a drop in Roblox’s share prices upon announcement, according to Reuters.
Roblox CEO Dave Baszucki stated, “Roblox had a strong 2024, driven by our commitment to innovation and community. We’re building a platform that transcends technology, focusing on fostering genuine connections. As we strive to capture 10% of the global gaming content market, we will continue to invest in our virtual economy, app performance, and AI-driven discovery and safety, empowering creators and enhancing the user experience.”
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FAQs
What were Roblox’s financial results for Q4 2024?
Roblox’s financial results for Q4 2024 showed modest growth over the holiday season.
Why did Roblox’s shares drop after posting its 2025 predictions?
Roblox’s shares dropped after posting its 2025 predictions due to expectations of lower growth in the second half of the year.
What are some key areas of improvement outlined by Roblox for the future?
Roblox highlighted trust and safety, artificial intelligence, and genre expansion as key areas for improvement in the future.
Credit: venturebeat.com
