Roblox shares plunged 24% in premarket trading Friday after the company slashed its annual bookings forecast, signaling that new safety measures are weighing on user growth.
The videogame platform warned of "continued short-term friction" from product changes, including age-based accounts, age verification, and expanded content monitoring, which have restricted communication and slowed user acquisition.
Roblox now expects full-year bookings of $7.33 billion to $7.6 billion, down from the earlier forecast of $8.28 billion to $8.55 billion. Net bookings come from in-game purchases of its virtual currency, Robux.
Analysts at Jefferies noted, "The magnitude of the guide cut suggests limited visibility, which makes it hard for us to gain confidence that the forecast is conservative."
The company stands to lose over $9 billion from its $39.55 billion market value if the losses hold. The stock has fallen about 32% this year after a 40% gain last year.
The changes follow multiple probes into Roblox over child safety, including concerns about inappropriate interactions and exposure risks for younger users. Analysts also cited rising competition, particularly from Fortnite and the anticipated November release of Take-Two Interactive's "Grand Theft Auto VI."
D.A. Davidson analyst Wyatt Swanson warned that gains made before GTA VI's release could be erased, leading to further headwinds for bookings growth in 2027.