Recently, a report from Hindenberg Research (via The Wall Street Journal) made some pretty nasty claims about Roblox. Since going public in 2021, the report claims that Roblox has been inflating its engagement numbers by as much as 42%.
Also, from speaking with former employees, the report also alleges that the content moderation system Roblox has does not work, allowing children to easily access adult content and be exploited by adults.
Now, Roblox has struck back with a statement of its own. The company immediately rejects the claims made in the report, and defends the work of its content moderation in keeping children and young players safe.
"Safety and civility have been foundational to Roblox since the company's inception nearly two decades ago, and the company has invested heavily throughout its history in its Trust & Safety
efforts. Every day, tens of millions of users of all ages have safe and positive experiences on
Roblox, abiding by the company's Community Standards," reads the statement.
There's also a nod to the financial claims made in the Hindenberg report:
"The financial claims made by Hindenburg are misleading. The authors are short sellers and
have an agenda irrespective of the substance of Roblox's business model and results. Roblox's
topline is growing quickly... The authors made no attempt to highlight any of that because the positive facts simply don't support their agenda."
Which side are you on in this Roblox fiasco?