Roblox experienced a significant 20% drop in share value following disappointing Q4 2023 user metrics, despite achieving record revenues.

Daily active users decreased by 4% to 85.3 million in Q4, falling short of analysts' expected 88.4 million. Player engagement also declined by 9.7% to 18.7 billion hours. The platform's ban in Türkiye, implemented in August 2023 over child safety concerns, contributed significantly to slower growth in Eastern Europe.

Despite these challenges, Roblox reported record earnings of $281 million with its game developers. The company projects annual bookings between $5.2 billion and $5.3 billion, slightly below analyst estimates of $5.27 billion.

Key Points:

• Platform maintains 380 million monthly active users
• Secured partnerships with Universal Music and Warner Music
• Gaming industry experiencing broader slowdown
• Company remains committed to fair developer compensation

The platform continues to be popular among young gamers who use it for social interaction, despite previous controversies regarding young developer compensation. While facing similar challenges as other gaming companies like Electronic Arts, Roblox maintains its position as a leading gaming platform in 2024.

Outgoing CFO Mike Guthrie noted that while growth has slowed, Roblox still outperforms the overall gaming market, which is "barely growing as a category."

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