Roku Slumps on Weaker Q4 Revenue Guidance as Supply-Chain Woes Bite
By Yasin Ebrahim
Investing.com - Roku slumped in after hours trading after the streaming device maker reported softer fourth-quarter and a miss on third-quarter revenue as supply-chain issues slowed TV consumption, hurting user growth.
Roku (NASDAQ:ROKU) was down 10% in aftermarket hours .
Roku reported Q3 EPS of 48 cents per share on revenue of $680 million, compared with estimates for EPS of 6 cents.
Active accounts rose 1.3 million to 56.4 million in the quarter, falling short of estimates of 56.7 million Streaming hours were 18.0 billion hours, an increase of 0.7 billion hours from Q2 2021, but just shy of estimates for 18.3 billion.
"We believe that the slowdown in active account growth rate this quarter was, in large part, attributable to global supply chain disruptions that have impacted the U.S. TV market," the company said.
Average revenue per user (ARPU) was up 49% to $40.10 year-on-year.
Looking ahead, the company guided Q4 revenue of $893 million at the midpoint, up 37% year-over-year, but short if estimates for $948.5 million.
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