Roblox experienced a significant 20% drop in share value following disappointing Q4 2023 user metrics, despite achieving record revenues. Daily active users decreased by 4% to 85.3 million, falling short of analysts' expected 88.4 million, while player engagement declined 9.7% to 18.7 billion hours.

The decline was partially attributed to slower growth in Eastern Europe, particularly due to the platform's ban in Türkiye over child safety concerns implemented in August 2023. Outgoing CFO Mike Guthrie noted that while gaming as a category is showing minimal growth, Roblox continues to outperform the broader gaming market.

For the upcoming year, Roblox projects annual bookings between $5.2-5.3 billion, with the midpoint falling below analyst estimates of $5.27 billion. Despite user challenges, the platform reported record earnings of $281 million for game developers, which CEO David Baszucki highlighted as demonstrating their commitment to creator compensation.

The platform maintains a strong presence with 380 million monthly active users as of 2024 and has secured partnerships with major companies like Universal Music and Warner Music. This performance aligns with industry-wide trends, as other gaming companies like Electronic Arts also report conservative outlooks for 2025 due to weak bookings.

These results come after previous controversies regarding young developers' compensation, though Roblox has clarified it does not directly employ minors. The platform continues to be popular among younger users who use it for both gaming and social interaction after school.

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