Roku Shares Soar On Upbeat Q4 2018 Earnings & 2019 Outlook



Shares of Roku Inc. rallied 5% in the extended trading session on Thursday after the media streaming service said it had a total of 7.8 million subscriber additions last year. The digital media player manufacturer reported stronger-than-expected fourth quarter revenue and issued an upbeat guidance for the current fiscal year.

Roku added 3.3 million subscribers in the fourth quarter, while its average revenue per user rose 30% from a year-ago to $17.95. Shares of the company have climbed 28% over the past three months and 68% year to date.

ROKU Earnings & Outlook

Roku posted net income of $6.8 million for the December quarter, or $0.05 per share, compared with net income of $6.9 million, or $0.06 per share in the same period last year. The company reported fourth-quarter revenue of $275.7 million, up from $188.3 million in the prior-year quarter.

On average, analysts polled by Refinitiv were expecting adjusted earnings of $0.03 per share on revenue of $262 million. Roku’s platform segment, which consists of licensing, advertising and other non-hardware revenue sources, accounted for $151.4 million of the company’s total revenue during the quarter.

The Los Gatos, CA-based forecasts revenue of between $185 million to $190 million for fiscal 2019 first quarter, compared with analysts’ estimates of $188.3 million. For the full year, Roku expects revenue to be in the region of $1 billion to $1.025 billion, while analysts model revenue of $985.2 million.

Roku also expects platform revenue to account for nearly two-thirds of companywide revenue in 2019, up from 56% from last year.

Roku CEO Comments

“2018 was an excellent year for Roku, with record results and solid progress towards our long-term vision of powering every TV in the world. As more than 3 million U.S. households cut the cord, Roku added nearly 8 million active accounts in 2018, increasing our total active accounts to more than 27 million at year end. We estimate that nearly 1 in 5 U.S. TV households now use the Roku platform to stream at least a portion of their TV viewing,” CEO Anthony Wood said in a press release.

Roku, Inc. Profile

Roku, Inc. engages in the provision of a streaming platform for television. It operates through the following business segments: Player and Platform. The Player segment consists of net sales of streaming media players and accessories through retailers and distributors, as well as directly to customers through the company’s website.

The Platform segment includes fees received from advertisers and content publishers, and from licensing the company’s technology and proprietary operating system to service operators. The company was founded by Anthony Wood in October 2002 and is headquartered in Los Gatos, CA. – CNN Money