tech
Roblox shares plummet 18% as child safety measures weigh on bookings
Roblox is facing over 140 federal lawsuits accusing it of failing to prevent child exploitation, and last month settled with Alabama and West Virginia.
TL;DR
- Roblox shares dropped 18% after reporting first-quarter earnings.
- New child safety measures, including age verification for chat features, negatively impacted bookings.
- The company reduced its full-year 2026 bookings guidance due to slowed growth from safety initiatives.
- Roblox's Q1 revenue and loss per share surpassed analyst estimates.
- The company is facing over 140 lawsuits alleging failure to protect children from sexual exploitation.
- Roblox has settled with Alabama and West Virginia for a combined $23.2 million.
- New account types for younger users and expanded parental controls were announced last month.