Roblox CEO Defends Margin Drop Amid Stock Sell-Off, Cites AI And Infrastructure Spending: Report

In an interview with CNBC, Roblox CEO David Baszucki framed the margin decline as a deliberate, short-term sacrifice to fuel growth

Roblox Corp. (RBLX) stock fell sharply on Thursday despite the company beating both revenue and earnings expectations for its most recent quarter. 

Investors reacted to guidance suggesting operating margins could decline in the coming year. CEO David Baszucki told CNBC that the dip in margins is a strategic trade-off to support the platform’s rapid expansion and technological innovation.

We did give a hint that we've cumulatively grown on average over the last two years, 37%. We are going to spend and invest in our infrastructure to keep up with that growth. 

– David Baszucki, CEO, Roblox

Baszucki framed the margin decline as a deliberate, short-term sacrifice to fuel growth. “It’s this spending that’s going to weigh down margins, sort of preparing for the future,” he said. 

The company reported 150 million daily active users, up from 100 million a year ago, alongside a 70% year-over-year rise in bookings to $1.9 billion. Baszucki emphasized that infrastructure and AI investments are essential to accommodate unprecedented peak usage, which recently surged to over 45 million concurrent users.

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