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Roblox's algorithm, safety changes dent bookings forecast; shares slump
['Harshita Mary Varghese', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
The company said bookings were impacted after changes to its recommendation algorithm steered younger users toward newer and evergreen games that generate less revenue per hour than the viral hits that drove spending last year.
"Investments in AI, content diversification, long-term retention, and safety, though creating near-term friction, position us to maximize our share of the global gaming market," Chopra said.
Roblox's daily active users (DAUs) fell 7% sequentially to 123 million in the second quarter, but were up 10% from a year earlier.
Bookings for the quarter rose 8% to $1.56 billion, in line with analysts' estimates.
The company has focused on attracting older users and expanding internationally to diversify.