Roblox(RBLX.US) Q4 Daily Active Users (DAU) fell short of expectations, causing its stock price to plummet by 30%.

Roblox(RBLX.US) on Thursday reported user data for the fourth quarter of 2024, but its daily active users (DAU) fell short of Wall Street expectations, leading to a 30% plunge in the company's stock price in pre-market trading. The stock opened at $62.45, down 17% from its previous close.

Roblox's DAU grew to 85.3 million in the three months ended December 31, 2024, up from the previous year but below the 88.4 million expected by market analysts. Additionally, bookings, an important indicator of sales, reached $1.36 billion, slightly below the $1.37 billion expected by the market, further exacerbating investor concerns. Despite the shortfall, Roblox is continuing to expand its gaming platform ecosystem, with the acquisition of the most popular game on the platform this week, the identity of its mysterious developer finally revealed, attracting market attention.

However, the company also faces certain challenges, particularly in the protection of minors. Roblox has been criticized in the past for failing to effectively prevent online contact between bad actors and young players, and last year introduced stricter age management, including banning children under 13 from entering games specifically designed for social interaction, to enhance safety. Despite the shortfall in the data, the company remains confident about the future, expecting full-year bookings in 2025 to be between $5.2 billion and $5.3 billion.