Roku, a streaming video platform that allows users to watch videos online, beat expectations for the first-quarter on Wednesday as it gained more viewers than anticipated. Roku's stock increased in extended trading.
San Jose-based company, added 1.6 millions new active accounts during the quarter ending March, bringing their total to 71.6 Million. Analysts expected that 1.14 million users would join during the quarter.
Roku lost $1.38 per share on sales $741 million for the first quarter. FactSet polled analysts who expected Roku would lose $1.47 per share on sales $708 million. Roku had lost 19 cents per share in the previous period on sales of 734 million.
Roku's platform revenues, which are primarily advertising sales, fell 1% on an annual basis to $634.61 million during the quarter ending March. In the same period, Roku's device sales grew 18% to $106.4 millions. The first-quarter revenue total increased by 1%.
Roku Stock Surges After Report
Roku has predicted that revenue for the second quarter will be $770 million. This is an increase of 1%. Analysts predicted sales of $766 millions for the June quarter.
Roku's stock rose 3.2% in after-hours trade today to 58.39. Roku's stock closed at 56.56, a 2% drop during Wednesday's regular session.
In a letter sent to shareholders, Chief Executive Anthony Wood (left) and Chief Financial officer Steve Louden (right) said that they had delivered "solid first-quarter results" in a difficult macroeconomic environment.
"We expect macro uncertainty to continue throughout 2023," they added. "Consumers are still under pressure from inflation and recessionary concerns, so discretionary spending is likely to stay muted."
Netflix, the streaming video network (NFLX) announced a weak outlook for its first quarter last week. Netflix's stock dropped on the news.
Netflix is the top stock in IBD’s Leisure-Movies & Related Industry Group. Roku is ranked ninth with an IBD Composite rating of 21 out 99 according to IBD stock Checkup.