Roku Is Back After Big Q4

  • Roku Is Back After Big Q4

Roku Is Back After Big Q4

The company also said it set a record with 40.3 billion streaming hours during 2019, a 68% year over year increase. However, despite the growth across multiple categories, Roku still lost $17.4 million during the fourth quarter.

Roku has long hinted that the Roku Channel would continue to be built into the OS.

In comparison, Amazon surpassed 40 million active Fire TV accounts in January - adding more than 10 million in the past year.

Roku has released its earnings report for the last quarter of 2019, and the company did very well, exceeding expectations.

"2019 was a tremendous year for TV streaming as the massive shift of the TV ecosystem gained momentum", Roku said in its letter to shareholders.

The company posted net loss attributable to common stockholders of $15.7 million, or 13 cents per share, in the fourth quarter ended December 31, compared with a profit of $6.8 million, or 5 cents per share, a year earlier.

Advertising is one of the biggest opportunities for Roku as the viewership moves from traditional TV to streaming, Louden added.

Roku Inc. (NASDAQ: ROKU) beat Wall Street's revenue targets and posted a smaller-than-expected loss Thursday after the bell. Revenues from Roku's Platforms division (encompassing advertising, subscription revenue sharing and license fees from TV makers that use the Roku operating system) continued to dominate, raking in $259.6 million in Q4, up 71%.

Revenues for Q4 passed expectations, jumping nearly 50 percent to United States dollars 411.2 million, with platform revenue advancing 71 percent and player revenue climbing 22 percent.

Average revenue per user also grew, hitting $23.14 (on a trailing twelve months basis), up 29% year over year.

Looking ahead, Roku expects Q1 2020 revenues of $300 million to $310 million, up from $275.7 million in Q1 2019, alongside a net loss in the range of $55 million to $60 million. For the year, revenues will rise year-on-year to Dollars 1.580-1.620 billion while the adjusted EBITDA will range from a loss of USD 10 million to a gain of 10 million.

Roku shares were up $7.59 (5.46%) to $146.64 each in after-hours trading Thursday.