Roku Inc (ROKU) Revenue Impresses in First-Ever Earnings Call
Roku Inc (NASDAQ:ROKU) posted its earnings results after hours Wednesday.
Source: Roku
The company unveiled its quarterly results for the first time in its history as the streaming device maker only went public six weeks ago. Shares were skyrocketing after today’s market close following its report.
Roku posted earnings at a loss of $7.9 million in its fiscal third quarter, handily beating the loss of $12.7 million posted in the same quarter a year ago. Analysts were calling for losses of $12.7 million.
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Revenue was also a strong point for the streaming device manufacturer, coming in at $124.8 million, ahead of the $89 million the company raked in a year ago. Wall Street had a consensus estimate of $110 million in revenue for the company.
One of Roku’s strongest points of the period was its advertising and licensing business as the company raked in $57.5 million in platform revenue, which refers to its non-hardware business. This figure was a 137% improvement year-over-year.
As far as hardware sales go, the company raked in $67.3 million in its third quarter, marking a 4% increase compared to the year-ago mark. Part of the reason why the hardware has not been selling as well for Roku is due to the company trading high-quality streaming boxes to cheaper player.
Nevertheless, the growth in advertising and licensing goes to show that the company is doing a good job of monetizing its streaming business through a hardware that competes with the likes of Google Chromecast, Apple TV and Amazon Fire.
ROKU stock popped 23.7% after the bell Wednesday.
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