Roku Inc (NASDAQ: ROKU) shares are down considerably despite reporting a third-quarter earnings and sales beat.
Earnings came in at a loss of 22 cents per share, beating estimates by 6 cents. Sales came in at $260.9 million, beating estimates by $4.8 million.
Roku sees fourth-quarter sales of $380-$396 million versus a $386.57 million estimate.
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“We continue to execute well against our long-term strategic plan as the TV market shifts to streaming... Our business momentum and competitive differentiation make Roku an essential partner for content publishers and advertisers," Roku CEO Anthony Wood said in a letter to shareholders. "This is evident in the launch of major new streaming services on our platform and by the growth in the number of advertisers who work with Roku.
"We believe the dataxu acquisition will accelerate our platform’s advertising technology roadmap, strengthen our already industry-leading TV streaming platform and give us the opportunity to create an even more appealing offering for advertisers."
- Net revenue increased 50% year-over-year
- Platform revenue increased 79% year-over-year
- Active accounts of 32.3 million
- 10.3 billion streaming hours in the quarter
Roku shares fell more than 15% to $120 in Wednesday's after-hours session. The stock closed at $141.05 per share.
Photo courtesy of Roku.