Roku gains after swelling accounts fuel revenue beat

Roku Adds Record 4.6 Million Accounts During Q4, Stock Price Jumps 8%

Roku Adds Record 4.6 Million Accounts During Q4, Stock Price Jumps 8%

For the full year, we achieved strong growth, exceeded $1.1 billion in revenue, and reinforced our position as America's No. 1 TV streaming platform by hours streamed.

The number of active accounts in the quarter rose to 36.9 million from 32.3 million in the previous quarter and 27.1 million the year before.

Roku's share price enjoyed a nice boost on Thursday afternoon, after the company - best known for its streaming devices - reported it added a record 4.6 million new accounts during the fourth quarter, while also topping Wall Street's revenue projections. In the latest quarter, the company reported revenue growth of roughly 52%, platform growth of 78%, streaming hours up 68%, active accounts up 36%, ARPU up 29%, and gross profit growth of about 49%.

Streaming device makers have benefited alongside platforms like Netflix Inc and Inc's Prime Video as consumers cut the cord to cable or satellite TV and shift to subscription-based streaming services.

"While streaming became mainstream in the last decade, it is still a minority of TV viewing", Wood and Louden stated. That compared with consensus estimates calling for a net loss of $0.14 per share and $391.61 million in revenue and to $0.05 in earnings per share (EPS) and $275.74 million posted in the same period of past year.

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Overall, Roku is still losing money however, reporting a loss of $0.13 per share which was exactly what Wall Street analysts expected. The company said almost one in every three smart TVs sold in the U.S. in the year were Roku TVs.

Revenues for Q4 passed expectations, jumping nearly 50 percent to United States dollars 411.2 million, with platform revenue advancing 71 percent and player revenue climbing 22 percent.

Looking ahead, Roku expects Q1 2020 revenues of $300 million to $310 million, up from $275.7 million in Q1 2019, alongside a net loss in the range of $55 million to $60 million. For full 2020, Roku anticipates revenues of $1.58 billion to $1.62 billion and a net loss of $160 million to $180 million.

Roku shares were up $7.59 (5.46%) to $146.64 each in after-hours trading Thursday.

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