Funding agency Hindenburg Analysis claims Roblox is “constantly overstating the quantity of individuals on its platform by 25 % to 42 % or extra.” The Verge stories: Roblox, which went public in 2021, reported having 79.5 million every day energetic customers in its most up-to-date earnings report. Nevertheless, Hindenburg claims Roblox “deliberately conflates” precise folks with every day customers, as that quantity may additionally embrace alt accounts and bots. The analysis alleges that Roblox can separate alt accounts from single customers, though the corporate’s disclosure says every day energetic customers “aren’t a measure of distinctive people accessing Roblox.”
Hindenburg is an activist short-selling agency that infamously publishes analysis when it says it is recognized one thing shady a few enterprise, permitting it to make a revenue as its share worth declines. One instance is from 2020, when Hindenburg accused the EV startup Nikola of fraud. Subsequently, an investigation by the Securities and Trade Fee (SEC) resulted in a four-year jail sentence for its founder, Trevor Milton. […] The agency additionally claims Roblox is not doing sufficient to guard kids on the platform, alleging its “in-game analysis revealed an X-rated pedophile hellscape, exposing kids to grooming, pornography, violent content material and intensely abusive speech.” Roblox shares dipped following the discharge of the report. Desiree Fish, Roblox’s chief communications officer, stated in a press release: “We completely reject the claims made within the report. The monetary claims made by Hindenburg Analysis are merely deceptive. The authors are, admittedly brief sellers and have an agenda regardless of the substance of Roblox’s enterprise mannequin and outcomes. Over the previous 4 quarters our bookings, the amount of money receipts, have grown over 22% from $780.7 million in Q2 2023 to $955.2 million in Q2 2024. Over the identical time, money supplied by working actions have totaled $646.3 million, free money circulate was $440.3 million, and we have now guided to even larger numbers for fiscal 2024. An examination of our GAAP steadiness sheet and our GAAP money circulate assertion makes that clear. The concentrate on money bookings and money circulate are themes that we have now targeted on constantly with buyers courting again to our days as a personal firm. The writer made no try to spotlight any of that as a result of the optimistic details merely do not assist their agenda.”
