Roblox's Platform Changes Create Near-Term Uncertainty

Dow Jones07:17

1917 ET - Roblox is in the midst of several changes to its platform, and it's tough to tell how they'll affect the business going forward, the company says as it withheld its full-year outlook earlier than scheduled. "The reality is it's very early days for many of those new initiatives," Chief Financial Officer Naveen Chopra says during a call with analysts. "There's no model that we can look at that's going to say exactly what they're going to do over the next three to six months." The video game company has been pushing safety initiatives this year, including with the roll-out of an age check feature, and is rejiggering its discovery algorithm to prioritize games that retain users over ones with stronger monetization. The latter pressured bookings in the latest quarter, and the company projects that monetization weakness will continue.

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