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Investing.com — Roku reported Wednesday fourth-quarter results and guidance that was better than feared as a rebound in streaming demand boosted user growth just as advertising spend continued to stutter.
Roku (NASDAQ:ROKU) was up about 11% in aftermarket hours.
The streaming device reported a Q4 loss of $1.70 cents per share on revenue of $867.1 million, better than estimates for a loss of $1.72 a share on revenue of $802.1M.
Active accounts rose 2.3M to 65.4M in the quarter as streaming hours increased 21% to 21.9M billion hours.
“This growth was driven primarily by TV sales in both U.S. and international markets, along with improved active account retention,” the company said.
Platform revenue grew 15% year over year, though this was lower than historical growth rates as advertising spend grew slower than expected.
“Advertising spend on our platform continues to grow more slowly than our beginning-of-year forecast due to current weakness in the overall TV ad market and the ad scatter market in particular,” it added.
Average revenue per user (ARPU) was up 10% to $44.25 year-on-year.
Looking ahead, the company guided Q4 revenue of roughly $800M, total gross profit of roughly $325M, and adjusted EBITDA of negative $135M. Analysts were expecting about $696.1M in revenue for Q4.
