Roku down 20% on Q4 results: ‘we’re focusing on big opportunities’

Roku

Shares of Roku Inc (NASDAQ: ROKU) are down more than 20% in extended trading after the streaming company said its Q4 revenue came in shy of Street estimates and gave dovish guidance due to supply pressures. Still, on CNBC’s “Closing Bell”, CEO Anthony Wood said:

We had an incredible year in 2021 overall. The world is moving to streaming. From our business standpoint, it’s still pretty early days in the transition of the world for streaming. So, there’s a lot of growth to come. I’m focused on the mid to long-term.

Highlights of Roku’s Q4 earnings report

  • Roku reported $23.7 million in net income versus the year-ago figure of $67.3 million.
  • It earned 18 cents per share, lower than 49 cents per share last year but above the FactSet consensus for 5 cents per share.
  • Revenue noted an annualised growth of 33% to $865.3 million, missing experts’ forecast for $894 million.
  • Player and platform businesses generated $161.7 million and $703.6 million in sales, respectively, as per the earnings press release.
  • Streaming hours printed at 19.5 billion – an increase from 18 billion in Q4 of fiscal 2020, but below 19.7 billion expected.
  • Active accounts climbed from 56.4 million to 60.1 million. This compares to the analysts’ call for 59.5 million.

Future guidance and CEO’s remarks

For fiscal Q1, Roku forecasts $55 million in adjusted EBITDA on $720 million in revenue. In comparison, analysts were at $79 million of adjusted EBITDA and $751 million in revenue. Wood, however, added:

There’s still considerable room for active account growth. TV software platforms are consolidating around a few licensed winners. Roku is the number one streaming operating system in the country. So, as this transition continues, we’ll continue to grow our market share.

According to the chief executive, the strength of the advertising business and global expansion are also a positive for Roku Inc. He sees opportunity in monetisation per active user as well.

45% of TV viewership is now streaming, but only 18% of TV advertisers have moved their dollars to streaming. Eventually, all TV advertising will be delivered to streaming. That has just barely started. So, we’re focusing on those big opportunities and making sure we continue to execute on them.

The stock has tanked nearly 70% since September 2021.

The post Roku down 20% on Q4 results: ‘we’re focusing on big opportunities’ appeared first on Invezz.

Source: https://invezz.com/news/2022/02/18/roku-down-20-on-q4-results-were-focusing-on-big-opportunities/