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Thanks for the visual – what a wild ride – interesting down 10% + with an announcement of a new product lineup – MOMO ran out and bang – eerie to $SNAP
Roku first earnings report smashes analyst expectations $ROKU Soars
$ROKU Adjusted losses per share 10 cents, better than last year’s loss of 17 cents and better than the loss of $1.40 some anticipated. Net loss was $46.2 million. Loss from operations was $7.9 million.
Roku reported $124.8 million in net revenue for its third quarter, compared to $110.5 million in analyst estimates, up from $89 million in revenue for the same period last year.
“Our higher margin platform segment is the key driver of our growth and gross margin expansion, and our advertising business has more than doubled in size year-to-date,” said CEO Anthony Wood in the company press release.
Revenue generated from advertising, licensing and revenue shares with Amazon, Hulu, Netflix and YouTube.
Roku says its active accounts for the quarter totaled 16.7 million, up 48% year-over-year, with “the largest and fastest-growing portion coming from Roku TVs,” according to the release.
Roku says its users streamed 3.8 billion hours in the quarter, up 58% from the same period last year.
Trailing twelve-month average revenue per user was $12.68, an increase of 37%.$ROKU closed Wednesday at $18.84, with a market cap of $1.83 billion after this earnings report Roku Inc
NASDAQ: ROKU · November 9, 9:45 AM EST
28.40 ▲ 9.53 (50.50%)Roku $ROKU surges higher after Needham raised Price target
Needham analyst Laura Martin reiterated her buy rating and raised her price target to 50 from 28.
Roku shares close today NASDAQ: ROKU · November 27, 4:19 PM EST 46.52 ▲ 7.05 (17.86%)
Martin gave five reasons for her upbeat outlook on the stock:
Attractive valuation, strategic positioning, active user growth, expanding average revenue per user and profit margins, and a rising competitive moat.
“Like Netflix (NFLX), we view Roku as a pure play on over-the-top (OTT) TV-viewing growth, but Roku has no content risk. Recent announcements and press reports that Disney (DIS), Alphabet (GOOGL), Amazon (AMZN), etc., are launching new OTT services helps Roku but hurts Netflix.”
Martin now expects Roku to hit break-even on an adjusted basis in the third-quarter of 2018, one quarter earlier than her prior projection.
“Roku’s engagement lengths are hours per day per user, well above any internet company, suggesting higher monetization potential per user,” Martin said. “Also, as linear TV viewership falls, it is easy for brands to use their existing 30-second TV spots on Roku to follow younger audiences to OTT.”
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