Roblox shares plummet 18% as child safety measures weigh on bookings
Roblox's shares dropped 18% following its first-quarter earnings report, as new child safety measures negatively impacted user engagement and bookings. The company's age-check feature, which restricts chat access for unverified users, has slowed new user acquisition and diluted communication among verified users. As a result, Roblox significantly lowered its 2026 full-year bookings guidance by nearly $1 billion.
- ▪Roblox shares fell 18% after reporting Q1 earnings.
- ▪The age-check feature restricted chat for non-verified users and reduced communication among verified users.
- ▪73% of age-checked daily active users were under 18 as of January 31.
- ▪Roblox cut its 2026 bookings forecast to $7.33B–$7.6B, down from $8.28B–$8.55B previously.
Opening excerpt (first ~120 words) tap to expand
Roblox shares plummeted 18% on Friday after the company reported first-quarter earnings as its new child safety measures weighed on bookings."Part of what we're rolling out with age check, we believe, is the real, right long-term way to build this platform," CEO David Baszucki said Friday on CNBC's "Squawk Box."In a letter to shareholders, the gaming company wrote that its new age-check feature "restricted on-platform communication for non-age checked users, diluted communication for age-checked users, and slowed new user acquisition," causing greater-than-expected headwinds.In January, the company restricted its chat feature to users who completed its age-check verification.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Hacker News: Front Page.
Discussion
0 commentsMore from Hacker News: Front Page
