A video sign displays the brand for Roku, a video streaming firm, in Times Square after the corporate’s initial public offering on the Nasdaq Market in Latest York on Sept. 28, 2017.
Brendan McDermid | Reuters
Shares of Roku soared in pre-market trading Thursday after the corporate reported better-than-expected revenue for the third quarter.
Here’s how Roku performed for the quarter ending Sept. 30, in comparison with analysts’ estimates from LSEG, formerly often known as Refinitiv:
- Loss per share: $2.33 vs. $2.12 expected
- Revenue: $912 million vs. $855.2 million expected
After the bell Wednesday, Roku reported a net lack of $330.1 million for the third quarter, or $2.33 per share, nearly triple the lack of $122.2 million, or 88 cents per share, which is what the corporate reported within the year-ago quarter.
But revenue was up 20% yr over yr, the corporate reported, largely driven by “strong performance in content distribution and video promoting, together with unit sales of Roku-branded TVs, which launched in March 2023,” Roku said in a shareholder letter.
Roku-branded smart TV’s come pre-installed with the Roku interface users would experience on an external plug-in Roku Streaming Player. The smart TVs were first made available at Best Buy earlier this yr and drove a tool segment revenue increase of 33% from the year-ago quarter, the corporate said during its earnings call Wednesday.
“Branded TVs also drove a better portion of net adds in energetic accounts than the streaming players in international markets,” Roku Devices President Mustafa Ozgen said during Wednesday’s earnings call.
The corporate said it fared higher in the course of the quarter with advertisements, weathering an industry-wide ad slowdown.
“We had a solid rebound in video ads within the third quarter,” Roku Media President Charlie Collier said in the course of the earnings call. “We expect year-over-year growth within the fourth quarter to be similar, but we remain cautious concerning the ad market recovery going forward.”
Lively accounts also beat the Street’s estimates, coming in at 75.8 million for the quarter, in comparison with StreetAccount estimates of 75.33 million. That is a net increase of two.3 million energetic accounts from the previous quarter.
For the fourth quarter, Roku expects revenue of roughly $955 million, topping the $952 million expected by Wall Street, based on LSEG.
In September, Roku said it was shedding 200 employees in a bid to scale back the corporate’s year-over-year operating expense growth rate. The move followed rounds of layoffs earlier this yr in March and November 2022. The corporate also committed to numerous cost-cutting measures including consolidating office space and slowing hiring, CNBC reported on the time.
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