Roku Shares Tick Higher As Q1 Earnings And Sales Beat Forecasts

roku earnings

Roku Inc (NASDAQ: ROKU) surged in post-market hours on Wednesday after reporting fiscal 2019 first quarter loss and revenue that was better than what analysts had expected.

Shares of the media-player manufacturer gained $5.33, or 8.21% to $70.25 in after-hours trading session. The stock, which has rallied 112% since the beginning of the year, ended the regular session with a gain of 0.79%.

ROKU Earnings & Outlook

Roku’s first-quarter net loss was $9.7 million, or $0.09 per share, compared with a loss of $6.6 million, or $0.07 per share in the same period last year. Analysts on average had called for a loss of $0.25 per share loss based on figures compiled by Refinitiv.

Roku had revenue of $206.7 million in the three months ended March 31, 2019. On average, analysts polled by Refinitiv were expecting the company to report revenue of $191.9 million in the quarter.

Revenue from the company’s platform segment rose 79% on a year-over-year basis, thanks in part to video advertising sales and audience development revenue. Roku said average revenue per user was $19.06 during the period, compared with $18.64 that analysts expected.

Looking ahead, the company sees revenue of between $220 million to $225 million for the current quarter, above analysts’ estimate of $218. Roku is also projecting revenue of between $1.03 billion to $1.05 billion for the full year, compared with its previous guidance of $1 billion to $1.025 billion.

Roku CEO Comments

“Q1 results exceeded our outlook for revenue, gross profit and adjusted EBITDA, driven by strong operational execution, robust active account growth and the strengthening shift to streaming. We saw strong Q1 sales for both Roku TVs and players,” commented Roku CEO Anthony Wood in the company’s letter to shareholders.

“We estimate that Roku TVs sold by our OEM partners accounted for more than one-in-three smart TVs sold in the U.S. in Q1, as we gained significant market share. Meanwhile, Q1 player unit sales were up 21% year-over-year. Our strategy of offering players at appealing prices to drive account growth led to a 4% year-over-year drop in player ASPs,” Woods continued.

Roku Inc Profile

Roku Inc operates TV streaming platform in the United States. Its TV streaming platform allows users to discover and access a variety of movies and TV episodes, as well as live sports, music, news, and others. The operating segments of the company are Player and Platform.

It derives key revenue from the Player segment which 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.

Platform segment consists of fees received from advertisers and content publishers, and from licensing the company’s technology and proprietary operating system with TV brands and service operators.