Roblox forecast quarterly bookings below Wall Street estimates on July 30. Shares tumbled over 10% in after-hours trading.
Roblox expects third-quarter bookings in this range, below the $1.77 billion analysts had projected.
The company expects third-quarter bookings between $1.58 billion and $1.65 billion, while Wall Street estimates stood at $1.77 billion. In after-hours trading, shares fell 11% according to one report, while another reported a drop of about 12%.
Tougher age-verification measures weighed on user onboarding and engagement. The added steps made it harder to sign up and reduced access to certain features, the company said.
Roblox implemented age verification to bolster player safety, following heightened scrutiny of its child-safety practices.
Roblox's average daily active users (DAU) fell 7% sequentially in the second quarter to 123 million, though that represented a 10% increase year-over-year.
Users over 18 accounted for 27% of age-verified DAUs in the second quarter. Roblox noted that U.S. users aged 18 and older generate more than 50% higher monetization than users under 18.
The company has increasingly focused on attracting older users and expanding internationally to diversify growth. Roblox allows users to build and explore their own digital worlds on its platform.