🕒 14.6 Billion Hours Roku'd in Q2
Hey Global Investor, here's what you need to know before the US markets open.
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Roku Users Streamed 14.6 Billion Hours of Content in Q2
In a mixed earnings report, the company reported a net loss but better-than-expected revenue for Q2.
What Happened? Roku posted revenue of $356M against an expected $316M in Q2, driven by 14.6B hours of content streaming despite falling ad spends. While this is a substantial increase from last year’s 9.4B hours, the company acknowledged a “moderation” in streaming levels since peaking in early Q2.
Key numbers:
Earnings per share: Net loss of 35 cents per share vs. expected 52 cents per share loss
Revenue: $356.1M vs $316M expected
Active accounts: 43M vs. 42M expected
Roku generated $244.8M from its platform business and $111.3M from its player segment. The average revenue per user also grew from $21.06 to $24.92 Y-o-Y.
The company highlighted struggling ad-spending in Q3 and Q4, and is unable to commit on its performance until the situation “normalizes” in 2021. Still, Roku is hopeful of a strong Y-o-Y growth in the second half, albeit not as strong as expected before the Covid-19 pandemic.
The company has called off the search for succeeding CFO Steve Louden as he intends to continue in the role.
Market Reaction: The share price closed 0.61% down at $165.42 and further fell 0.4% after trading hours.
Roku Snapshot
ROKU $165.42 -1.02 (-0.61%)
Analyst Rating (21 Ratings) BUY 62% HOLD 29% SELL 9%
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