Roblox Stock Sinks Nearly 14% After-Hours as New Child Safety Measures Weigh on Outlook

Roblox stock tumbled nearly 14% in after-hours trading on Thursday, sliding toward $41.80. The gaming platform missed Wall Street revenue targets and issued weak guidance for the third quarter.

The drop erased optimism from a 36% year-over-year revenue increase. Investors instead focused on slowing user growth and a bookings forecast far below consensus.

Child Safety Rules Slow Roblox's Growth Engine

Roblox reported average daily active users of 123 million, up 10% year-over-year. That fell short of the roughly 128 million analysts expected. Average monthly unique payers reached 27 million, also up 15% year-over-year, per the company's supplemental materials.

That payer growth marks a sharp deceleration, however. Monthly unique payer growth ran as high as 94% year-over-year just two quarters earlier.

Mandatory age verification and new parental control tiers have since taken hold. Average bookings per payer held steady near $19.25, so the slowdown shows up in new payer counts, not in existing spending habits.

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