Roku Inc. shares surged 8.6% in Thursday’s aftermarket action after the streaming-media company easily topped expectations with its latest results while offering upside with its forecast.
The company logged a net loss of $108 million, or 76 cents a share, compared with a loss of $112 million, or 82 cents a share, in the year-earlier period. Analysts tracked by FactSet were expecting a loss of $1.26 a share.
Roku
ROKU,
also posted a loss of $18 million on the basis of adjusted earnings before interest, taxes, depreciation and amortization (Ebitda), whereas the FactSet consensus on the metric was for a $75 million loss.
Revenue rose to $847 million from $764 million, while analysts were modeling $775 million.
The company logged $743 million in platform revenue, which includes advertising and licensing. The FactSet consensus called for $670 million in revenue within that service. Revenue in the devices business grew 9% to $103 million, while analysts had been modeling $105 million.
Roku expects $815 million in total net revenue for the third quarter, along with a $50 million loss on the basis of adjusted Ebitda. Analysts were forecasting $809 million in revenue and a $57 million loss on the adjusted Ebitda metric.
“While consumer spend is showing some modest growth, macro concerns and uncertainty remain,” the company said in its shareholder letter. “We see some recovery signals within certain advertising verticals such as [consumer packaged goods] and health and wellness. However, [media and entertainment] spend, which was already challenged industry-wide, is expected to be further pressured by limited fall release schedules.”
This story originally appeared on Marketwatch
