Categories AlphaGraphs, Earnings, Technology

Roku’s stock jumps after Q4 results beat estimates

Roku Inc. (ROKU) topped market expectations on both revenue and earnings for the fourth quarter of 2018, sending the shares climbing over 3% during after-market hours on Thursday.

Total revenues rose 46% year-over-year to $275.7 million. Platform revenue grew 77% and Player revenue grew 21% during the quarter.

Roku Q4 2018 earnings infographic
Roku Q4 2018 Earnings Infographic

Net income attributable to common stockholders was $6.7 million, or $0.05 per share, compared to $6.9 million, or $0.06 per share, in the prior-year quarter.

Active accounts increased 40% year-over-year to 27.1 million while streaming hours improved 69% to 7.3 billion. ARPU grew 30% to $17.95. The results benefited from strong holiday sales for both players and TVs. The company also saw an increase in its smart TV market share in the US.

Also see: Roku Q4 2018 Earnings Conference Call Transcript

Although Roku sees the opportunity to grow active accounts in the US, the company is increasing its international investment. International distribution is unlikely to be a key driver of account growth in 2019 but Roku expects to see more benefits from these investments show up in international account growth in 2020 and beyond.

For the first quarter of 2019, Roku expects total revenue of $185 million to $190 million along with a net loss of $28 million to $32 million. For the full year of 2019, the company expects to achieve $1 billion in revenues, or around 36% year-over-year growth, with Platform revenue representing roughly two-thirds of total revenue. Net loss for the year is expected to range from $80 million to $90 million.

 

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

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Roku’s stock jumps after Q4 results beat estimates

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top