Roblox warns of slowing growth just ahead of its direct listing

Roblox hosts millions of games that are built by its users, who then get a share of any related revenue. Two thirds of all US kids ages nine to 12 use the platform, according to the company. — Bloomberg

Roblox Corp, the kid-focused gaming company that’s planning to go public this month, warned investors that the booming user growth it enjoyed during the pandemic is about to disappear.

The total hours that users spend engaged with the gaming platform could drop by as much as 11% in the second quarter, Roblox said in a statement on March 2. Though the number of daily active users is expected to grow 3% to 9%, that’s a fraction of the growth it’s been experiencing during Covid-19 lockdowns, which have kept many kids home from school.