Roblox Corp. shares plunged during Thursday’s trading session, falling as much as 20% following the release of mixed fourth-quarter financial results.

The primary reason for the decline was a reported drop in active users, raising investor concerns about slowing growth. According to the report, daily active users fell to 85.3 million from 88.9 million in the previous quarter.

By 3:05 p.m. ET, the stock had pared some losses, down 13% after initially dropping further.

The company also provided weak guidance for 2025, expecting bookings in the range of $5.2 billion to $5.3 billion, which fell short of analysts’ average expectations.

Experts believe the decline in user numbers may be linked to Roblox’s efforts to clean up bots and inactive accounts following an investigation by Hindenburg Research, which accused the company of inflating its user base and raising child safety concerns.

Technical analysis indicated that the stock found buying support around $61, near its rising 50-day moving average.