Roblox shares fall 18% after child safety measures hurt Q1 bookings and user growth
By
Lola Murti
29d ago· 4 min readenNews
85/100
Golden Brown
Bagelometer↗
Slow-proofed and worth the wait. Worth its weight in flour.
Score85TypenewsSentimentnegative
Summary
Roblox shares dropped 18% after reporting Q1 earnings, as new child safety measures (including age verification) negatively impacted bookings, communication features, and user acquisition. The company faces over 140 federal lawsuits alleging failure to prevent child exploitation, and recently settled with Alabama and West Virginia. CEO David Baszucki defended the safety changes as the right long-term approach for the platform.
Key quotes
· 2 pulledPart of what we're rolling out with age check, we believe, is the real, right long-term way to build this platform.
Restricted on-platform communication for non-age checked users, diluted communication for age-checked users, and slowed new user acquisition
Roblox is facing over 140 federal lawsuits accusing it of failing to prevent child exploitation, and last month settled with Alabama and West Virginia.
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