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.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.