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Investors Business Daily
Investors Business Daily
Technology
PATRICK SEITZ

Streaming Video Platform Roku Tops Views With Q1 Results, Guidance

Streaming video platform Roku late Thursday beat expectations for the first quarter and guided above views for the current period. Roku stock slipped in extended trading.

The San Jose, Calif.-based company added 1.6 million new accounts, ending the period with 81.6 million streaming households. Analysts had expected 1.55 million new accounts in the first quarter.

Roku lost 35 cents a share on sales of $881 million in the March quarter. Wall Street had modeled a loss of 61 cents a share on sales of $844 million. In the year-earlier period, Roku lost $1.38 a share on sales of $741 million.

For the current quarter, Roku forecast revenue of $935 million, vs. the consensus estimate of $926 million. In the second quarter last year, Roku generated $847 million in sales.

Roku Stock Seesaws After Report

In after-hours trading on the stock market today, Roku stock alternated between gains and losses. In recent trades, it was down more than 2% at 61.40. During the regular session Thursday, Roku stock advanced 1.6% to close at 62.81.

While Roku user accounts rose 14% year over year in the first quarter, streaming hours on the platform increased 23%. That boosted advertising sales on the Roku platform.

Roku stock ranks seventh out of 19 stocks in IBD's Leisure-Movies & Related industry group, according to IBD Stock Checkup. It has a weak IBD Composite Rating of 22 out of 99, owing to its lack of profitability and poor stock performance over the past year.

The top stock in the Leisure-Movies & Related industry group is Netflix, which has a Composite Rating of 98.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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