Roblox experienced a significant 20% drop in shares following disappointing Q4 2023 user engagement metrics, despite achieving record revenue figures.

Daily active users decreased by 4% to 85.3 million, falling short of analysts' expectations of 88.4 million. Player engagement also declined 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 demonstrated financial strength:

• Projected annual bookings: $5.2-5.3 billion
• Record developer earnings: $281 million
• Monthly active users: 380 million as of 2024

The company maintains strong partnerships with major labels like Universal Music and Warner Music, and remains popular among young gamers who use the platform for social interaction. Outgoing CFO Mike Guthrie emphasized that Roblox continues to outperform the broader gaming market, which he noted is "barely growing as a category."

CEO David Baszucki highlighted the company's commitment to creator compensation, addressing previous concerns about young developer compensation rates. While Roblox doesn't employ minors directly, its developer kit enables young users to create and monetize games within the platform.

This performance trend aligns with broader industry challenges, as evidenced by Electronic Arts' conservative outlook for 2025 due to weak bookings forecasts.

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