Roblox Corp. reported a decline in daily active users and reduced its full-year revenue outlook following the implementation of safety measures on its gaming platform. The company disclosed in its latest earnings report that daily active users fell to 132 million globally, down from 144 million at the end of last year and 152 million in the third quarter.

The decrease in users was attributed in part to the rollout of age verification checks across the platform. These safety measures represent Roblox's ongoing efforts to enhance security and age-appropriate content delivery for its user base, which includes a significant number of children and teenagers.

As a result of the user decline and its impact on engagement metrics, Roblox revised its revenue forecast for the full year downward. The company now projects revenue between $5.87 billion and $6.14 billion, reduced from its previous outlook of $6.02 billion to $6.29 billion.

The first-quarter results reflect the immediate impact of these safety initiatives on user growth and platform engagement. The age verification requirements appear to have created friction in the user experience, leading to decreased participation on the platform.

Roblox has been under increasing scrutiny regarding child safety on its platform, prompting the company to implement stricter verification processes and content moderation measures. While these efforts aim to create a safer environment for younger users, they have created near-term headwinds for user growth and revenue generation.