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Roblox growth slumps, but the company is betting big on AI to compensate

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Roblox growth slumps, but the company is betting big on AI to compensate

Roblox's quarterly financial results missed their daily active user goals, but the company plans to make up for it somehow with AI.

Roblox reported its quarterly financial results yesterday and the numbers are a little mixed. While the company fell well short of the daily active user goals and guidance, leadership believes that generative AI will be the silver bullet that makes up for the decline in users.

Despite viral games like You Can Steal an Egg making waves on Roblox this past quarter, daily active users fell 9 percent year over year and well below the 145 million estimate at just 138 million. The company did beat estimates in hours engaged at 34 billion, but that still represents a 15 percent decline from the previous year. From the financial release, Roblox attributed this declination to the previous year representing strong growth.

The company plans to offset this lesser demand, however, by heavily investing in generative AI game creation initiatives. Roblox states that over 80% of the platform's top 100 games from the past quarter are made using AI tools.

Related:John Romero's canceled game finds a new publisher amidst an overall scope change

Roblox's AI training process drew attention this earlier week after the company confirmed to Game Developer that an AI agent had scraped 145.5 GB of 3D assets, including adult content, from Open3DLab. A Roblox spokesperson characterized this as a mistake, saying that the content would not be used for AI training in the future.

Founder and CEO David Baszucki remained bullish on AI in comments to investors.


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