Roblox shares plunged 20% following disappointing Q4 2023 user metrics, despite achieving record revenue figures. Daily active users decreased by 4% to 85.3 million, falling short of analysts' expected 88.4 million users. Player engagement also declined 9.7% to 18.7 billion hours.

The decline is partially attributed to slower growth in Eastern Europe, particularly due to the platform's ban in Türkiye over child safety concerns implemented in August 2023. Outgoing CFO Mike Guthrie noted this was the first full quarter without Türkiye's market presence.

Despite these challenges, Roblox achieved several positive milestones:

• Record earnings of $281 million for game developers
• Maintained 380 million monthly active users as of 2024
• Secured partnerships with Universal Music and Warner Music

The company projects annual bookings between $5.2-5.3 billion, slightly below analyst estimates of $5.27 billion. While growth has slowed, Guthrie emphasized that Roblox continues to outperform the broader gaming market, which he described as "barely growing as a category."

The platform remains particularly popular among young gamers who use it for both gaming and socialization. This trend persists despite previous controversies, including allegations in 2021 about the platform's treatment of young developers, which the company addressed by clarifying its policies on minor developers and compensation structures.

This performance aligns with broader industry trends, as other major gaming companies like Electronic Arts have also reported conservative outlooks for 2025 due to weak bookings forecasts.

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