Roblox (NYSE:RBLX) forecast annual bookings below market estimates on Thursday, sparking fears growth at the videogame platform was slowing after years of breakneck progress, sending its shares down $9.82, or 13%, in early Thursday trading to $65.72.
The company said it expects bookings for 2025 to be between $5.20 billion and $5.30 billion, the midpoint of which was below estimates of $5.27 billion according to data compiled by LSEG.
Roblox’s forecast adds to worries about the videogame industry’s health, after a lackluster outlook from Electronic Arts, which blamed weak bookings - a key measure of in-game spending - on its struggling soccer franchise.
Still, Roblox’s projection points to a third consecutive year of roughly 20% growth in bookings, even as rivals grapple with a slowdown in spending from customers stung by sticky inflation.
“We’re growing at a substantial premium to the overall gaming market. Right now, gaming is barely growing as a category,” outgoing CFO Michael Guthrie told Reuters.
The overall videogame industry, in comparison, likely grew by 2.1% in 2024, according to research firm Newzoo.
A push into new game genres, including those for older players, has fueled rapid growth at Roblox over the past two years and unlocked new revenue streams in ads and e-commerce.
The company has also benefited from a surge in user-generated content and its free-to-play model, which has helped Roblox buck the broader slowdown in videogame spending.
