GamesIndustry.biz
1 hour, 35 minutes ago • Sophie McEvoy
Roblox shares fall 70% following lower-than-expected monetisation during Q2
Roblox took a sharp market hit after second-quarter results showed monetisation running 2% below guidance, dragging bookings down with it. The biggest weakness came from lower average bookings per daily active user in the under-13 segment, where the platform’s current mix of content and recommendations is favouring retention over immediate spend.
CFO Naveen Chopra said the shortfall came from a bigger-than-expected shift away from high-monetising viral hits toward newer and evergreen experiences with lower hourly monetisation. He also pointed to recommendation changes designed to improve long-term retention, which are surfacing more impressions for sticky games and fewer near-term bookings, especially among younger users.
For developers, this is a useful reminder that platform-level discovery and monetisation systems can reshape which content gets surfaced and which business models win. Roblox says it plans to mitigate the headwind by improving recommendations using age-check data, but also warned that monetisation weakness is likely to continue. Third-quarter bookings are projected at $1.58 billion to $1.65 billion, down 14% to 18% year over year.
The company is also leaning harder into AI-powered creation tools, including Build, but expects those investments to raise infrastructure costs. Management says it won’t revise full-year guidance yet because Q4 outcomes remain unusually variable as the platform keeps changing.
“Monetisation weakness is likely to continue.”
At a glance
what
Roblox shares fell 70% after Q2 results showed monetisation 2% below company guidance.
who
Roblox CFO Naveen Chopra said the shortfall came from a mix shift and recommendation changes.
when
The results were for Q2; Roblox forecast Q3 bookings of $1.58B-$1.65B.
impact
Platform discovery changes can materially affect which experiences earn revenue, especially for younger users.
SignalConcerning
Sharp share drop and weaker monetisation outlook
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