Advertisement
Roblox stock fell about 4% on Friday morning. Investors were worried about slower growth in the company’s main markets.
Analyst Corey Barrett from M Science said Roblox is still seeing strong global user numbers in September. But money coming in from bookings has slowed in the U.S. and parts of Europe.
In the U.S., bookings growth dropped to the low 30% range compared to last year. That’s a sharp slowdown from the 40% range in August and the 50% range in July. Europe is also seeing weaker growth, though not as much as the U.S.
The analyst explained this slowdown is mostly because these markets are already more mature. Plus, the back-to-school season means less time spent on Roblox.
On the bright side, bookings outside the U.S. and Western Europe are still very strong. In some places, growth is holding at recent highs.
Roblox also saw more daily active users on mobile devices compared to earlier in the year. Europe and other world regions are leading the way in growth. But in September, user growth in the U.S. and Asia-Pacific was only in the low single digits.
Overall, Roblox is still growing well. But the slowdown in its biggest markets is sharper than many investors expected.