Roku’s stock (NASDAQ: ROKU) suffered a big fall this week after the streaming platform reported a net loss for the second quarter of 2022, compared to a profit last year, hurt by continued weakness in ad spending.
The company reported total revenues of $764.4 million for the three-month period, which is up 18% from the year-ago period. The number of active users increased 14% to 63.1 million. At $44.10, the average revenue per user was up 21%.
Roku reported a net loss of $112.3 million or $0.82 per share for the June quarter, which marked a deterioration from the prior-year period when the company reported a net profit of $73.5 million or $0.52 per share.
Check this space to read management/analysts’ comments on Roku’s Q2 2022 earnings
“We are in an economic environment defined by recessionary fears, inflationary pressures, rising interest rates, and ongoing supply chain disruptions. For the second half of the year, we are forecasting that advertising spend, particularly in the scatter market, will continue to be negatively impacted. We also believe that consumer discretionary spend will continue to moderate, pressuring both Roku TV and Roku player sales,” said Anthony Wood, CEO of Roku.