Roku’s Q2 results beat market estimates

Roku Inc. (NASDAQ: ROKU) beat market estimates for revenue and delivered a narrower-than-expected loss for the second quarter of 2019. Shares gained 8% in aftermarket hours on Wednesday.

Total revenue jumped 59% year-over-year to $250.1 million, topping estimates of $224 million. The increase was driven by growth in advertising as Roku monetized video ad impressions more than doubled year-over-year.   

The company reported a net loss of $9.3 million, or $0.08 per share, versus a net income of $0.52 million, or $0.00 per share, in the prior-year quarter. Analysts had forecast a loss of $0.22 per share.

During the quarter, platform revenue grew 86% to $167.7 million and player revenue rose 24% to $82.4 million. The company saw strong unit sales for both Roku TVs and players. Player unit sales increased 36%, marking the highest growth in the last nine quarters.  

Active accounts grew 39% year-over-year to 30.5 million while streaming hours increased 72% to 9.4 billion. Average revenue per user (ARPU) increased 27% to $21.06.

For the third quarter, Roku has guided for revenues of $250-255 million and net loss of $40 million to $34 million.

Based on the strong performance thus far, the company raised its outlook for full-year 2019 and now expects a net loss of $71-61 million on revenues of $1.07 billion to $1.09 billion. Platform revenue is expected to represent roughly two-thirds of total revenue.

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