Roblox is overinflating its user numbers, according to eye-popping report

digitaltrends.com:

A damning new report concerning mega metaverse Roblox claims the company has been “lying to investors, regulators, and advertisers,” specifically about the number of active users and the presence of child and sexual exploitation on the platform.

The analysis from Hindenburg Research is quite a read — both in length and in terms of substance — but the basics are that it believes Roblox Corp. has inflated its daily active user stats by about “25-42% or more” and engagement hours by around 100% since it doesn’t take into consideration bots or alt accounts.

Hindenburg uses the report to show how Roblox conflates “daily active user” with “person” in various settings but won’t in others, like in SEC filings. Many users create alt accounts so that their main one won’t get compromised. This is a common practice among many online video games and platforms.

• What is Roblox?

“Independent Roblox data monitor RoMonitor indicates there are 6.5 billion total registered Roblox accounts as of this writing, a number approaching Earth’s population,” the report says. While Roblox has said that it can’t differentiate alt accounts from main ones (a process called “de-alting”), Hindenburg sources, including former Roblox employees, say otherwise. They also add that Roblox hires a different team to present numbers to investors.

Hindenburg writes thatRoblox has reported net losses every quarter since it went public, and mostly relies on its growing player base to placate investors. In September, CEO David Baszucki revealed during the Roblox Developers Conference that the company is aiming for 300 million daily active users, up from its current reported 79.5 million daily active users. This was along with some big announcements, including new ways for creators to sell physical merchandise, and an affiliate program to reward people for bringing new users to the platform.

In addition, the report reveals “scores of abuse” toward children who use the platform. Roblox