Roku nears 37M active accounts after busy Q4

Roku Adds Record 4.6 Million Accounts During Q4, Stock Price Jumps 8%

Roku Adds Record 4.6 Million Accounts During Q4, Stock Price Jumps 8%

Altogether, Roku beat on total active account expectations, quarterly revenue guidance, full-year revenue guidance, and full-year EPS guidance. However, despite the growth across multiple categories, Roku still lost $17.4 million during the fourth quarter. Those users watched about 12 billion hours worth of streaming video in the fourth quarter, up 60% year over year.

Roku has been a beneficiary of the increased competition in media streaming as it receives a cut of streaming services monthly fees when users signup to a service through the Roku platform.

In comparison, Amazon surpassed 40 million active Fire TV accounts in January - adding more than 10 million in the past year.

The company posted net loss attributable to common stockholders of $15.7 million, or 13 cents per share, in the fourth quarter ended December 31, compared with a profit of $6.8 million, or 5 cents per share, a year earlier.

"While streaming became mainstream in the last decade, it is still a minority of TV viewing", Wood and Louden stated.

The loss of 13 cents per share matched Wall Street expectations.

While revenues have been surging, the company was [also able to/unable to] grow gross margins which came in at 62.5% for the quarter which were down 0.1% over the previous quarter and down 7.4% year over year.

Roku reported higher results for the fourth quarter and full year, with the company saying it was helped by the launch of new products, it being a neutral partner on the streaming market, the addition of new capabilities to aggregate content and bring in viewers, and improvements to its advertising platform.

Total net revenue jumped about 49% to $411.2 million, beating analysts' average estimates of $391.6 million. The company said almost one in every three smart TVs sold in the USA in the year were Roku TVs. Wall Street analysts had predicted Roku would lose 16 cents per share on sales of $297 million in the first quarter.

Looking ahead to the first quarter, the company expects to see $300 million to $310 million in revenue with a gross profit of roughly $143 million to $148 million.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.