Roku, helped again by stay-at-home streaming during the coronavirus pandemic, topped Wall Street earnings estimates for the second quarter of 2020 and saw streaming hours skyrocket a whopping 65% year over year.
Roku added 3.2 million incremental active accounts in Q2 to reach 43 million, while streaming hours increased by 2.3 billion hours over last quarter to 14.6 billion.
“Roku and our partners also saw a surge in growth for AVOD, SVOD and TVOD services during the quarter,” the company said in its Q2 letter to shareholders. “As economic pressures caused advertisers to further re-evaluate how much and where to invest media dollars, Roku delivered strong growth in our ad business, particularly relative to the overall TV ad market that was down.”
Total net revenue grew 42% year over year to $356.1 million, and Platform segment revenue — including advertising and subscription sales — climbed 46%. Roku posted a net loss of $43.15 million, or 35 cents per share, beating analyst forecasts.
Wall Street analysts had expected Roku’s Q2 revenue to come in at $315.43 million with a net loss of 50 cents per share, per Refinitiv.
Roku also announced that CFO Steve Louden, whom the company said in December was going to step down, is remaining its chief financial officer. “Steve has proven that he is more than capable of performing the CFO role while residing in Seattle. Hence, we are delighted that Steve will be staying on as Roku’s CFO and we have ended the search for his successor,” Roku said.
More to come.
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