GoKawiilRoblox 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.