Roblox Guides 2025 Sales Below Views After Mixed Fourth-Quarter Results

Roblox Corporation (NYSE: RBLX), a global platform for shared experiences, has released its fourth quarter and full year 2024 financial and operational results, along with its first quarter and full year 2025 guidance. While the company reported strong user engagement and revenue growth, its guidance for 2025 sales fell short of analysts' expectations, leading to a mixed reaction from investors.



In the fourth quarter of 2024, Roblox's Average Daily Active Users (DAUs) grew by 19% year-over-year to 85.3 million, while hours engaged increased by 21% to 18.7 billion. This growth in user engagement translated into financial success, with revenue increasing by 32% year-over-year to $988.2 million and bookings growing by 21% to $1,361.6 million. However, the company's net loss attributable to common stockholders was $219.6 million, and its consolidated net loss was $221.1 million.



For the full year 2024, Roblox's revenue grew by 29% year-over-year to $3,602.0 million, and bookings increased by 24% to $4,369.1 million. The company's net loss attributable to common stockholders was $935.4 million, and its consolidated net loss was $940.6 million. Adjusted EBITDA was $180.2 million, and net cash and cash equivalents provided by operating activities grew by 79% to $822.3 million.



Roblox's guidance for 2025 sales fell short of analysts' expectations. The company guided for revenue between $4,245 million and $4,345 million for the full year, compared to analysts' expectations of $4,200 million. The slight discrepancy in revenue guidance can be attributed to Roblox's conservative approach to estimating the average lifetime of a paying user, which is a key factor in revenue recognition.



Roblox's guidance for bookings was also slightly below analysts' expectations. The company guided for bookings between $5,200 million and $5,300 million for the full year, compared to analysts' expectations of $5,100 million. The slight discrepancy in bookings guidance can be attributed to Roblox's focus on investing in its virtual economy, app performance, and AI-powered discovery and safety, which may impact short-term bookings growth but drive long-term user engagement and revenue.

In conclusion, Roblox's fourth quarter and full year 2024 financial and operational results demonstrated strong user engagement and revenue growth. However, the company's guidance for 2025 sales fell short of analysts' expectations, leading to a mixed reaction from investors. Roblox's focus on investing in long-term growth and its commitment to innovation and community are expected to drive further growth in user engagement and financial performance in 2025.