Roblox shares tumble as forecast cut signals safety measures weighing on user growth
May 1 : Roblox shares on Friday plunged to their lowest levels in 18 months after the company cut its annual bookings forecast, raising concerns that new safety measures could suppress user growth for several quarters. The videogame platform warned of “continued short-term friction” from new product changes, including age-based accounts, age verification and expanded content monitoring, which have restricted communication and slowed user acquisition. The company now expects full-year bookings of $7.33 billion-$7.6 billion, down from the $8.28 billion-$8.55 billion it forecast earlier. Net bookings are generated from in-game purchases of Roblox’s virtual currency “Robux”. “The magnitude of the guide cut suggests limited visibility, which makes it hard for us to gain confidence that the forecast is conservative,” analysts at Jefferies said. Roblox shares were down 19 per cent at $45.07 with the company set to lose more than $7 billion from its market valuation of $39.55 billion if losses hold. The stock has fallen about 32 per cent this year after seeing a 40 per cent gain last year. The platform is coming …






