Roblox Corp. (NYSE:RBLX) saw its stock fall 4% Friday morning as investors weighed concerns over slowing growth in its primary markets.
M Science analyst Corey Barrett noted that while Daily Active User (DAU) growth remained robust worldwide in September, the company’s bookings expansion “has decelerated sharply from recent highs in the U.S. and to a lesser extent in core European markets.” Barrett added that U.S. bookings growth likely eased to the low-30% range year-over-year in September, down from the mid-to-high 40% range in August and mid-to-high 50% in July.
He explained the slower growth in the U.S. and Europe as “a rationalization of growth in more mature markets associated with back-to-school.” Despite the slowdown in these core regions, Barrett emphasized that bookings growth in non-core markets, excluding the U.S. and Western Europe, remains at or near recent peaks.
The report also highlighted that mobile DAU growth accelerated across all regions from Q2 to Q3, although September growth in the U.S. and Asia-Pacific remained in the low single digits. Europe and other global markets continued to reach new highs in engagement.
Barrett concluded that while overall bookings growth is still “objectively strong,” the deceleration in core markets is more pronounced than many investors had expected based on global engagement metrics.
Roblox Corporation stock price
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