Roblox Ups Bookings Forecast, CFO Departure Affects Shares, Says Reuters

By Zaheer Kachwala

Roblox has updated its annual bookings forecast, anticipating increased user engagement on its platform during the summer break, driven by the introduction of more mature content that attracts users with greater spending capacity.

The announcement also included the departure of Chief Financial Officer Michael Guthrie, who has served in the role for nearly seven years and was instrumental in the company’s public listing in 2021. Following the news, shares of Roblox initially dropped 9%, but losses were later reduced to a 4% decline, which some analysts described as a "knee-jerk reaction" from investors.

Traditionally popular among younger gamers, Roblox has been promoting the development of more adult-oriented content, including horror games, to lure older users who tend to spend more money. During the April-to-June quarter, the number of hours players aged 13 and older engaged on the platform increased by 30%. As a result, Roblox now expects annual bookings to fall between $4.18 billion and $4.23 billion, an increase from an earlier estimate of $4 billion to $4.10 billion.

Guthrie commented on the importance of user-generated content, noting that the creativity of their developer community attracts older users who are willing to invest their money. “When users spend a lot of time with us, it tends to correlate with spending money,” he explained.

Distinct from conventional video game companies, Roblox’s business model relies heavily on user-generated content and generates most of its revenue through sales of the in-game currency "Robux." This approach has proven beneficial, particularly when consumers are tightening their budgets and opting for familiar titles.

Roblox has also projected third-quarter bookings in the range of $1 billion to $1.03 billion, surpassing estimates of $971.2 million, according to market data. The second quarter’s bookings exceeded expectations, largely due to the summer holidays in the U.S., which allowed gamers more time on the platform.