Roblox (RBLX) shares swooned Thursday after the company reported fewer-than-expected users in the fourth quarter. The online game platform had 85.3 million average daily active users in the period, up 19% year-over-year but below the analyst consensus of 88.

It also reported that daily active users, a key metric tracked by Wall Street, declined to 85.3 million in the quarter from 88.9 million in the prior quarter.What it means: For a company that's not yet profitable,

In other words, not as many people are joining Roblox as hoped. And spending per user is stagnating, a combination that troubles investors. On top of this concern, Roblox's management provided financial guidance for 2025, showing slower revenue growth and larger net losses. This led to the big drop with Roblox stock today.

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Shares of video game company Roblox (RBLX) fell in today’s trading as investors await its Q4 earnings results on February 6 before the market

In the trailing 12 months, the company generated $3.4 billion in revenue. Back in 2020, its top line came in at just under $924 million. While the growth has been solid in recent years, the problem is on the bottom line, as Roblox doesn't appear to be on a path to profitability.