Apparently a game company missing earnings forecasts by what looks like a rounding error is enough to cause its stock to drop now. That’s the effective takeaway from Roblox’s fourth quarter and 2024 fiscal year report, which saw bookings rise by 21% to $1.36B when compared to last year but missed a projected $1.37B by analysts that in turn caused shares to drop by 11%.
Daily active user counts were also up when compared to last year, rising by 19% to 83.5M, but that figure was also below projections of 88.39M. The company promised to shareholders that it would work “diligently” on initiatives to increase bookings for the game platform in the back half of 2025 and its intention to have “10% of the global gaming content market flowing through Roblox.”
In other Roblox news, the company is suing third-party trading site TradingAuctions for allowing trade of in-game items on its platform, which Roblox Corp says violates its TOS and provides players with “an avenue for players to break the rules.” Roblox Corp is seeking monetary damages and a full halt of Roblox item trading on the site.
