Should Roku Be Getting More Out of Q2?

By Chris Lange Updated Jan 11, 7:41PM EST · Published Aug 8, 4:31PM EDT

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Should Roku Be Getting More Out of Q2? — © walmart.com

Roku Inc. (NASDAQ: ROKU) released second quarter financial results after markets closed Wednesday. The company said that it had breakeven earnings and $156.8 million in revenue, compared with consensus estimates that called for a net loss of $0.15 per share and $141.48 million in revenue. The same period from last year had a net loss of $0.16 per share and $99.63 million in revenue.

During the quarter, total net revenues increased by 57% year over year. Of this total, Platform revenue contributed $90.34 million, an increase of 96% from last year, and Player revenue increased 24% to $66.47 million.

Active accounts were up 46% to 22 million at quarter end, with streaming hours up 57% to 5.5 billion hours. Separately, Average Revenue Per User (ARPU) was up 48% to $16.60 on a trailing 12-month basis.

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Looking ahead, the company is increasing its revenue and profitability outlook for the full year 2018 to reflect more rapid growth and a modest EBITDA profit. For the third quarter, Roku is looking for a net loss of $13 million to $18 million on total net revenues of $164 million to $174 million. Consensus estimates are calling for a net loss of $0.12 per share on $165.04 million in revenue.

For the full year, the company expects to achieve a net loss of $10 million to $22 million and revenue in the range of $710 million to $730 million. The consensus estimates are calling for a net loss of $0.28 per share and $697.93 million in revenue.

Shares of Roku closed Wednesday at $47.25, with a consensus analyst price target of $46.70 and a 52-week range of $15.75 to $58.80. Following the announcement, the stock was up less than 1% at $47.79 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.