Streaming video platform Roku late Thursday beat expectations for the first quarter and guided above views for the current period. Roku stock slipped in extended trading.
The San Jose, Calif.-based company added 1.6 million new accounts, ending the period with 81.6 million streaming households. Analysts had expected 1.55 million new accounts in the first quarter.
Roku lost 35 cents a share on sales of $881 million in the March quarter. Wall Street had modeled a loss of 61 cents a share on sales of $844 million. In the year-earlier period, Roku lost $1.38 a share on sales of $741 million.
For the current quarter, Roku forecast revenue of $935 million, vs. the consensus estimate of $926 million. In the second quarter last year, Roku generated $847 million in sales.
Roku Stock Seesaws After Report
In after-hours trading on the stock market today, Roku stock alternated between gains and losses. In recent trades, it was down more than 2% at 61.40. During the regular session Thursday, Roku stock advanced 1.6% to close at 62.81.
While Roku user accounts rose 14% year over year in the first quarter, streaming hours on the platform increased 23%. That boosted advertising sales on the Roku platform.
Roku stock ranks seventh out of 19 stocks in IBD's Leisure-Movies & Related industry group, according to IBD Stock Checkup. It has a weak IBD Composite Rating of 22 out of 99, owing to its lack of profitability and poor stock performance over the past year.
The top stock in the Leisure-Movies & Related industry group is Netflix, which has a Composite Rating of 98.
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