Roku Inc. (NASDAQ: ROKU) on Wednesday reported a narrower than expected net loss for the March quarter, triggering a stock rally in the after-hours trading session. The results benefitted from the steady expansion of subscriber base and user engagement.
Revenues of the Los Gatos, California-based TV streaming platform climbed 51% year-over-year to $206.7 million in the first three months of the year, helped by a 79% growth in platform revenue. Revenues also topped expectations.
The company posted a net loss of $9.73 million or $0.09 per share for the quarter, compared to a loss of $6.63 million or $0.07 per share in the prior-year quarter. Wall Street had predicted a wider loss.
During the quarter, per-user revenue increased 27% to $19.06, reflecting the continued uptick in the number of active accounts and user hours. The company added 2 million incremental active accounts during the quarter.
Per-user revenue increased 27% to $19.06, reflecting the continued uptick in the number of active accounts and user hours
For the second quarter, the management currently predicts a net loss in the range of $30 million to $25 million on revenues of $220-$225 million. The forecast for the whole of 2019 is a net loss of $75-$65 million on revenues between $1.03 billion and $1.05 billion.
Of late, the streaming space has been witnessing stiff competition, especially after the entry on new players including biggies like Apple (AAPL) and Walt Disney (DIS). However, Roku’s business model, wherein it acts as a one-stop destination for multiple streaming brands, allows it to take advantage of the situation by generating revenue from the increase in content resale.
There has been a marked increase in the sales of Roku-supported TVs in the US in recent years, which is in line with the company’s claims that it surpassed rivals like Amazon Fire (AMZN) and Apple TV in terms of customer growth.
The value of Roku’s shares more than doubled since the beginning of the year after falling steeply in the final weeks of last year. The stock, which is currently hovering near the $65-mark, closed Wednesday’s regular session higher and gained further after the earnings report.
Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips
Most Popular
CL Earnings: Key quarterly highlights from Colgate-Palmolive’s Q2 2024 financial results
Colgate-Palmolive Company (NYSE: CL) reported its second quarter 2024 earnings results today. Net sales increased 4.9% year-over-year to $5 billion. Organic sales increased 9%. Net income attributable to Colgate-Palmolive Company was $731
Key takeaways from Visa’s Q3 2024 earnings report
Credit card behemoth Visa, Inc. (NYSE: V) this week reported mixed results for the June quarter, with earnings matching expectations and sales slightly missing the view. Both numbers grew in
Southwest Airlines (LUV): A look at the airline’s performance in Q2 2024
Shares of Southwest Airlines Co. (NYSE: LUV) were up over 6% on Thursday after the company beat earnings estimates for the second quarter of 2024. The stock has gained 4%