Roblox released its second-quarter earnings report on August 9, and the big news on the money front is that the company faced a decline in bookings, defined as “revenue plus the change in deferred revenue during the period and other noncash adjustments.” That news caused the stock to drop by 17% – but there was good news for the sandbox game about adult Roblox players in there as well.
The earnings report also contained an interesting note that discussed the platform’s changing demographic. After noting that its fastest-growing demographic for both male and female users were people ages 17-24, it then noted how this trend should impact the platform in the long term.
It also included a note as to how this impacted the site’s bookings.
“The bookings total for 17-24 year old males in US/Canada was greater than the total bookings for 9-12 year old males in US/Canada, historically our largest and most engaged demographic,” it reads.
While the report attributes that to easier comparisons, critical investments, product initiatives, and operational focus, it’s also a strong indication that Roblox’s push to reach an older audience is working.
Originally developed as a platform for children to develop games for other children, Roblox was long considered a kids’ platform. However, as corporations began to tout the promise of the metaverse, it quickly became evident that Roblox could be a viable platform for people of all ages to gather in virtual worlds. Instead of just hosting games, the company revised the way it talked about its platform to describe each virtual world as an “experience.”
In the financials for the fourth quarter of 2021, released in February 2022, Roblox reported that, for the first time, more than 50% of its users were over 13. Further, on its Investor Day in November 2021, the company said 30% of its users were over 17, with more than 14% ages 25 and older. In the third quarter of 2021, it noted that the types of games Roblox developers were creating had also shifted, with 28% of developers catering to audiences in the mid to late teens compared to only 10% a year prior.
Over the past few years, the company began seeking older audiences through its branded partnerships. Thus far, significant brands that historically tend to court older audiences, such as Gucci, Hyundai, and Tommy Hilfiger, have taken the plunge into Roblox. One benefit of older audiences is that they often have more discretionary spending and freedom in how they choose to use their money. As of 2022, clothing is the most significant purchasing priority for teens, so it makes sense that major fashion brands would be interested in reaching these teens and catering to their avatars by offering virtual clothing items within the platform.
Further, children who grew up with Roblox stay with it as their preferred social network. Young people seem loyal to Roblox as a place to hang out with friends and express themselves, even as they move on from high school into college or the working world. This loyalty illustrates why it’s also crucial for Roblox to continue attracting younger users, who are typically more receptive to the ideas driving the concept of a metaverse.
It’s also attracting older audiences with its concerts, such as its recent Guacathon, which featured an in-experience show from rapper Denzel Curry.
Regardless of the quarterly earnings, this seems to imply that Roblox’s push to begin attracting older users is paying off. It also shows that the dream of the metaverse may be more than just kids’ play. As older people log into the metaverse, its popularity may eventually rival other community-oriented platforms such as Reddit or Facebook.
But until that manifests, Robloxians can continue to enjoy the platform for what it is by checking out our list of the best Roblox games in 2022. And, be sure to use our August Roblox promo codes for free avatar gear.