Roblox NYSE:RBLX shares fell 15% early Friday after the gaming company reported weaker-than-expected second-quarter engagement and provided a softer outlook for the following quarter.
Roblox generated $1.47 billion in second-quarter revenue, an increase of 36% from a year earlier. Roblox also posted a quarterly loss that was narrower than analysts had expected, but several key user activity measures missed forecasts.
Roblox reported daily active users, bookings and time spent on the platform below market estimates. Roblox also projected third-quarter revenue and bookings below consensus expectations, adding pressure to the shares.
Roblox pointed to near-term challenges in turning user activity into revenue while increasing spending on artificial intelligence tools for creators. Roblox also withdrew its full-year outlook, adding uncertainty around its expected performance for the remainder of the year.
Roblox shares dropped as investors focused on weaker engagement trends, cautious third-quarter guidance and the absence of a full-year forecast despite continued revenue growth.