(Reuters) -Hindenburg Research on Tuesday disclosed a short position in Roblox, alleging that the gaming platform inflated metrics including user numbers, sending its shares down 7.5% in premarket trading.
The company conflated “people” with its daily active users, based on its own definition of DAUs which says the metric is not a measure of “unique individuals accessing Roblox”.
Roblox did not immediately respond to a Reuters request for comment. DAUs could include bots or alternate accounts and is not a precise indicator of number of users, the short seller said.
The company raised its annual bookings forecast in August as it benefits from strong spending on the various games available on the platform.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.