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 and Apple TV in terms of the customer base.
In recent years, there has been a marked increase in the sales of Roku-supported televisions in the US
The market is bullish about Roku’s long-term prospects as a full-fledged streaming service provider, especially in the wake of the launch of the Roku Channel, offering a wide range of TV shows and movies. There is speculation that given the current growth rate, Roku will soon start giving competition to Netflix.
It is estimated that is that the heavy investments in growth initiatives, especially in overseas expansion, will start yielding returns towards the end of the year.
Roku’s per-user revenue improved consistently in the past two years and reached $17.95 in the last quarter, reflecting the continuing uptick in the number of active accounts and user hours. In the December quarter, earnings dropped 17% and were broadly flat, despite a 46% rise in revenues to $276 million.
Last month, Netflix (NFLX) reported a further steep increase in membership-base to about 149 million, with international markets accounting for the majority of the expansion. Earnings and revenues registered double-digit growth aided by a 23% growth in streaming revenue.
Roku’s market value dropped steeply in the final weeks of last year, but the stock recovered at an equally fast pace and is up 95% since the beginning of the year. The stock witnessed a great deal of volatility since the company went public two years ago. Over the past twelve months, it gained about 85%, outperforming the industry and the S&P 500 index.