Roblox shares plummet 18% as child safety measures weigh on bookings

Roblox shares plummeted 18% on Friday after the company reported first-quarter earnings as its new child safety measures weighed on bookings. "Part of what we're rolling out with age check, we believe, is the real, right long-term way to build this platform," CEO David Baszucki said Friday on CNBC's " Squawk Box ." In a letter to shareholders , the gaming company wrote that its new age-check feature "restricted on-platform communication for non-age checked users, diluted communication for age-checked users, and slowed new user acquisition," causing greater-than-expected headwinds. In January, the company restricted its chat feature to users who completed its age-check verification . According to the company, 73% of age-checked daily active users on Roblox were under 18, with 35% under 13 as of January 31. To account for the slowed growth, Roblox slashed its full-year 2026 guidance. The company updated its full-year 2026 bookings to fall between $7.33 billion and $7.6 billion. It forecasted 2026 bookings to be almost $1 billion higher last quarter , falling between $8.28 billion and $8.55 billion. "While our aggressive push to enhance safety lowers our expectations for topline growth in 2026, it makes our platform fundamentally better and amplifies the long-term growth potential of Roblox through more effective content targeting, tailored communication experiences, and improved community sentiment," the company wrote in its letter to shareholders. …