Streaming video platform Roku late Thursday smashed analyst estimates for revenue and new users in the second quarter. Roku stock jumped in extended trading.
The San Jose, Calif.-based company lost 76 cents a share on sales of $847 million in the June period. Analysts polled by FactSet had expected Roku to lose $1.26 a share on sales of $775 million. In the year-earlier period, Roku lost 82 cents a share on sales of $764 million.
Roku added 1.9 million new active accounts in the second quarter, topping views for 1.2 million. It ended the quarter with 73.5 million total users.
Roku's platform revenue, mostly advertising sales, rose 11% year over year to $743.8 million in the June quarter. Meanwhile, its device sales rose 9% to $103.4 million. Total revenue increased 11% in the second quarter.
Roku Stock Jumps After Report
For the current quarter, Roku predicted revenue of $815 million, up 7%. Analysts had projected sales of $809 million in the third quarter.
In after-hours trading on the stock market today, Roku stock surged 9.2% to 74.45. During the regular session Thursday, Roku stock fell 4.6% to close at 68.19.
In a letter to shareholders, Roku Chief Executive Anthony Wood and Chief Financial Officer Dan Jedda said the TV advertising market "remains muted industrywide." However, Roku saw improvement in some advertising categories in the second quarter.
"We are well positioned to re-accelerate growth as the ad market recovers," they said.
Roku stock ranks fourth out of 21 stocks in IBD's Leisure-Movies & Related industry group, according to IBD Stock Checkup. But it has a middling IBD Composite Rating of 52 out of 99.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
