When Roku Inc. (NASDAQ: ROKU) released its first-quarter financial results after the markets closed on Wednesday, the company said that it had a net loss of $0.09 per share and $206.7 million in revenue. That compared with consensus estimates calling for a net loss of $0.24 per share and $191.97 million in revenue, as well as the −$0.07 per share and $136.58 million posted in the same period of last year.
During the latest quarter, active accounts increased 2.0 million sequentially to 29.1 million, while streaming hours increased sequentially by 1.6 billion to 8.9 billion. Average revenue per user came to $19.06 on a trailing 12-month basis, up $1.11 from the fourth quarter and up 27% year over year.
Platform revenues increased 78.7% year over year to $134.15 million, and Player revenues increased about 18% to $72.51 million.
Looking ahead to the second quarter, the company expects to see $223 million in revenue with a gross profit of roughly $101 million. Consensus estimates call for a net loss of $0.22 per share and $220.18 million in revenue.
Anthony Wood, founder and CEO, commented:
Roku had an outstanding first quarter, delivering better-than-expected financial results with strong business momentum. As a result, we are increasing our financial outlook for 2019. The strength of our brand, the scale of our active account base, the advantages of our purpose-built streaming OS, and the engagement of our users make Roku an increasingly important partner for content publishers, advertisers and TV manufacturers. The shift to streaming and away from linear TV and legacy distribution platforms has enormous momentum. We estimate that in Q1 2019 more than one-in-three smart TVs sold in the U.S. were Roku TVs, making the Roku OS the #1 selling smart TV OS in the U.S.
Shares of Roku traded early Thursday at $75.90, up almost 17% and in a 52-week range of $26.30 to $77.57. The consensus price target is $68.23.