May 9 (Reuters) – Roblox cut its annual bookings forecast on Thursday, in a sign that people were dialing back on spending within its video-gaming platform amid an uncertain economic outlook and elevated levels of inflation.
The lowered forecast marks the latest downbeat report from the gaming industry, which has laid off hundreds of employees and shut studios this year to cope with declining demand.
Electronic Arts also gave a weak revenue forecast earlier this week.
Roblox now expects full-year bookings to be between $4 billion and $4.10 billion, down from its earlier forecast of $4.14 billion to $4.28 billion. Its second-quarter bookings forecast of $870 million to $900 million was also below estimates.
The company said it was conservative with its second-quarter forecast as the Easter holiday, a period of high engagement on its platform, was during the first quarter this year compared with the second quarter a year earlier.
Looking ahead, Roblox is implementing strategies to mitigate the effects of muted player spending and regain momentum. The company aims to enhance user experiences, introduce compelling content, and explore new monetization avenues.
Additionally, Roblox is closely monitoring market trends and consumer behavior to make informed decisions that drive long-term value and sustainability.
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