Shares of Roku plunged as much as 12 percent in extended trading Wednesday despite beating on both the top in addition to bottom lines in its third-quarter earnings.
Shares eased off shortly after the report to trade roughly 10 percent lower than Wednesday’s close of $58.86
Here’s how the company did compared with what Wall Street was expecting:
- Loss per share: 9 cents vs. 12 cents, forecast by Refinitiv consensus estimates
- Revenue: $173.4 million vs. $169.1 million, forecast by Refinitiv consensus estimates
- Active accounts: 23.8 million vs. 23.1 million, forecast by StreetAccount
- ARPU: $17.34 vs. $17.44 forecast by StreetAccount
Roku raised full-year revenue guidance to a range of $722 million to $732 million, up via a previous range of $710 million to $730 million. in which brand new guidance comes in just above Wall Street estimates of $722.8 million, according to Refinitiv estimates.
The company made its name selling over-the-top streaming devices in addition to striking up partnerships with content companies like Netflix in addition to Hulu. Roku has been trying to move beyond hardware though, introducing a curated Roku channel of free movies in addition to TV for device owners.
Roku said in its earning report the item’s “thrilled with the results,” however the item’s not immediately clear the strategy can be paying off as quickly as hoped.
Revenue via Roku players handily beat Wall Street estimates, totaling $73.3 million compared with $67 million forecast by StreetAccount in addition to FactSet. Revenue via the company’s platform segment, though, came in below analyst projects. Roku posted $100.1 million for the division, compared with $103.2 million forecast by StreetAccount in addition to FactSet.
Roku reported 23.8 million active accounts in addition to 6.2 billion streaming hours for the third quarter, exceeding StreetAccount estimates of 23.1 million accounts in addition to 5.8 billion hours.
“As our scale has increased, Roku has become a more important platform for content providers in addition to advertisers, driving both engagement in addition to monetization,” Roku said in a third-quarter shareholder letter. “A key differentiator, in addition to competitive moat, can be our direct relationship with customers on our platform which allows us to continuously collect rich data, including user registration, in addition to anonymized behavioral information.”
The company doesn’t make quite as much money per user as Wall Street predicted, reporting average revenue per user (ARPU) of $17.34, compared with $17.44 forecast by StreetAccount.