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Streaming company Roku reported its first earnings since going public sending $ROKU 50% higher after smashing estimates. Today's news caught the market short with the stock trading over $28 at market open. Roku

Roku $ROKU successful initial public offering raised $220 million giving it a market valuation of $1.3 billion when $Roku shares were priced at $14 each and opened at $15.78 on debut. There have also been rumors floating around about Apple $AAPL and $AMZN looking to acquire $ROKU. This is on the heals of more blood for big name IPO $SNAP. Roku shares have exploded north despite many negative after $SNAP and $APRN, perhaps the rise was fed by shorts at open.

Earnings: Loss of 10 cents per share less than 28 cents EPS forecast by analysts. Revenue rose 40% to $124.8 million beating forecasts of $110 million.

Reaction: Roku Inc NASDAQ: $ROKU $28.40 +9.53 (+50.50%)

Founder and CEO Anthony Wood  said "We priced an initial public offering, refreshed our entire line of players, released Roku OS 8 with exciting new features for Roku TV, expanded reach significantly and continued to innovate and monetize our platform. We entered 2017 with great momentum, and with solid execution throughout the year, we are seeing that momentum continue."

 "We are in a golden age of TV. Our mission is to be the TV streaming platform that connects the entire TV ecosystem." Roku prospectus

About RokuI (From IPO prospectus)

  • Founded 15 years ago
  • Sells a line of set-top boxes that enable its streaming TV services.
  • Has 15.1 million monthly active users as of June 30, up 43% from the year-ago period.
  • Claims it's equivalent to being the fourth-largest distributor of multichannel video programming, by subscribers.
  • Roku home screen lets  users search and access more than 500,000 movies and TV episodes
  • Access live sports, music, news and more
  • For H12017 ended June 30 Roku reported revenue of $199.7 million, up 23% from the year-ago period, with a loss of $21.2 million, vs. a loss of $32.6 million a year ago.
  • Roku revenue includes Roku TV streaming devices, advertising and subscription revenue

Competitors

  • Apple $AAPL Apple TV device
  • Amazon $AMZN Fire TV Stick
  • Alphabet Google unit $GOOGL Google Chromecast device. 

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