Roku Shares Skyrocket to New High on Earnings


 
 
03:37 05/13/2019











Roku ROKU  shares blasted off last week after the streaming device maker reported financial results for the first quarter.



The company saw its shares hit a brand new high after reporting blockbuster revenue and a promising outlook.



Roku also thrilled investors by revealing that it has now beaten Samsung as the No. 1 smart television system in the world. Shares of the stock soared 28% on Thursday after the news.



According to Roku, over 1 in 3 TVs that were sold in the first quarter were Roku-powered TVs.



For the quarter, Roku reported a loss of $9.7 million, or 9 cents a share, compared with a loss of $6.6 million, or 7 cents a share, a year earlier. Analysts polled by Refinitiv expected a loss of 25 cents a share. Revenue rose 51% to $206.7 million, above the consensus forecast of $191.9 million.



'In recent weeks, some of the world’s largest media publishers have announced massive new investments in streaming, new services. Customer acquisition campaigns from Disney, Apple and others will help fuel Roku’s growth for years to come,' Roku CEO Anthony Wood said on the earnings call.



He added, 'One of the themes at this quarter’s shareholder letter is the scope and scale of our platform business, which connects the entire streaming ecosystem. Our large and growing platform business supports content distribution, audience development and advertising. The Roku OS is uniquely purpose-built for TV screaming and is a key enabler of our platform business.'
Roku ended the first quarter with 29.1 million customers, which was an increase of 2 million over the previous quarter.



'Roku users streamed more content on our platform in the last 6 months than they did in all of 2017,' Roku Chief Financial Officer Steve Louden commented.
Wood also said on the earnings call, 'Roku is off to a great start to the year. Q1 results beat our outlook across the board, and we are raising our outlook for the full year. Our growth continues to be driven by our singular focus. As consumers, content publishers, and advertisers embrace streaming, Roku is winning. We have an exceptional platform, an unmatched team, and we deliver compelling value for viewers and partners alike. In recent weeks, some of the world's largest media publishers have announced massive new investments in streaming. New services and customer acquisition campaigns from Disney, Apple, and others will help fuel Roku's growth for years to come. One of the themes of this quarter's shareholder letter is the scope and scale of our platform business, which connects the entire streaming ecosystem. Our large and growing platform business supports content distribution, audience development, and advertising.'



'The Roku OS is uniquely purpose-built for TV streaming and is a key enabler of our platform business. Before handing the call over to Steve Louden, I'd like to highlight a milestone that I'm particularly proud of. In less than five years, Roku TV has gone from a disruptive idea to the market leader. We estimate that more than one in three smart TVs sold in the U.S. in the first quarter were Roku TVs. We have taken the lead from Samsung and are now the No. 1 smart TV OS in the country. I'll now turn it over to Steve.'








This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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