Management's guidance for 2025 didn't exactly assuage nerves. It forecasted lower revenue growth and wider net losses, with forecast net losses coming close to $1 billion vs. free cash flow profit of about $800 million.

In other words, not as many people are joining Roblox as hoped. And spending per user is stagnating, a combination that troubles investors. On top of this concern, Roblox's management provided financial guidance for 2025, showing slower revenue growth and larger net losses. This led to the big drop with Roblox stock today.

Analysis of Roblox Corporation's Q4 earnings reveal softer DAU trends & below-consensus FY 2025 bookings. Click for my updated look at RBLX stock prospects.

Gaming metaverse operator Roblox (NYSE:RBLX) reported Q4 CY2024 results exceeding the market’s revenue expectations, with sales up 31.8% year on year to $988.2 million. The company expects next quarter’s revenue to be around $1.