Roku Slumps as Softer Outlook Offsets Earnings Beat in Q3

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXMPEE49167_M.jpg
© Reuters. © Reuters.

Investing.com – Roku (NASDAQ:) downgraded its full-year guidance even as third-quarter results topped analyst’s expectations, driven by a surge in active users.

The streaming-device company downgraded its full-year adjusted earnings (EBITDA) outlook to a range of $30 million to $35 million from a previous range of $30 million to $40 million. The downgraded guidance was blamed on continued investment in the business as well as an approximately $5m headwind related to dataxu operations and dataxu-acquisition-related expenses.

Roku a loss per share of 22 cents on revenue of $260.9 million, compared with consensus estimates from Investing.com for a loss of 28 cents on revenue of $256.11 million.

The outperformance was driven by a surge in active accounts, average revenue per user (ARPU) and streaming hours that support the company’s efforts to boost ad-revenue growth.

The company said it reached 32.3 million active users during the quarter, up 36% from the same period last year and 1.7 million more than it had in the prior period.

Average revenue per user (ARPU) was up $1.52 to $22.58 from the second quarter of 2019.

Roku was down more than 13% in post-market trading.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment