Roku Is Back After Big Q4

When Roku Inc. (NASDAQ: ROKU) released fourth-quarter financial results after markets closed Thursday, the company said that it had a net loss of $0.13 per share and $411.2 million in revenue. That compared with consensus estimates calling for a net loss of $0.14 per share and $391.61 million in revenue and to $0.05 in earnings per share (EPS) and $275.74 million posted in the same period of last year.

During the latest quarter, active accounts increased 4.6 million sequentially to 36.9 million, while streaming hours increased sequentially by 1.4 billion to 11.7 billion. Average revenue per user came to $23.14 on a trailing 12-month basis, up 29% year over year.

Platform revenues increased 71% year over year to $259.6 million, and Player revenues increased by about 22% to $151.6 million.

Looking ahead to the first quarter, the company expects to see $300 million to $310 million in revenue with a gross profit of roughly $143 million to $148 million. Consensus estimates call for a net loss of $0.16 per share and $297.48 million in revenue.

Anthony Wood, founder and CEO, commented:

In Q4 2019, we exceeded our outlook for revenue, gross profit and adjusted EBITDA. For the full year, we achieved strong growth, exceeded $1.1 billion in revenue, and reinforced our position as America’s No. 1 TV streaming platform by hours streamed. We connect consumers, content publishers, advertisers and TV brands and are rapidly increasing our scale.

Shares of Roku closed Thursday at $139.93, in a 52-week range of $49.33 to $176.55. The consensus price target is $146.75. Following the announcement, the stock was up 11% at $154.43 in the after-hours session.