Streaming video platform Roku late Thursday beat Wall Street's revenue target for the first quarter on better-than-expected advertising sales. Roku's bottom-line results matched estimates. Roku stock seesawed in extended trading.
The San Jose, Calif.-based company lost 19 cents a share on sales of $733.7 million in the March quarter. Analysts polled by FactSet expected Roku to lose 19 cents a share on sales of $718 million. In the year-earlier quarter, Roku earned 54 cents a share on sales of $574 million.
Roku's platform revenue, mostly advertising, increased 39% year over year to $646.9 million in the first quarter. However, its player sales dropped 19% to $86.8 million amid supply-chain disruptions.
In the March quarter, Roku added 1.1 million new active accounts, missing Wall Street's target of 1.7 million new users. It ended the first quarter with 61.3 million active accounts.
Roku Stock Seesaws After Report
For the current quarter, Roku forecast revenue of $805 million, below the consensus target of $816 million.
In after-hours trading on the stock market today, Roku stock alternated between gains and losses. In recent trades, it was up 0.6% to 92.19. During the regular session Thursday, Roku stock jumped 8.1% to close at 91.63.
"We have delivered solid performance in a challenging operating environment and expect that we will continue to navigate through macro headwinds, including inflationary pressures, geopolitical conflict, and supply chain disruptions," Chief Executive Anthony Wood and Chief Financial Officer Steve Louden said in a letter to shareholders.
"We believe that these near-term headwinds are dwarfed by the long-term opportunities in the secular shift to TV streaming and TV OS (operating system) consolidation," they said.
Roku's report comes amid heightened interest in advertiser-supported streaming video as a growth market.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
