Shares of Roku popped in extended trading Wednesday after the company reported better-than-expected first-quarter financial results.
The stock price was up about 1.5 percent when the report was released after the bell, following a pre-earnings rally of nearly 9 percent in the regular trading session.
Here's what Roku reported:
- Loss per share: 7 cents, excluding items vs. expectation of 15 cents per share by a Thomson Reuters estimate
- Revenue: $136.6 million vs. $127.6 million expected by a Thomson Reuters consensus estimate
The company also saw sales from its platform surpass revenue from selling physical devices — driven by advertising, something the company invested in after its IPO.
Roku went public last year in one of 2017's more successful IPOs. The shares have risen more than 23 percent over the past 6 months, as the company has taken advantage of the trend of streaming video from online sources such as Amazon, Netflix and Hulu. Netflix revealed last month that it added far more users than expected in the first quarter.
Roku said that of its nearly 21 million active users, almost half either cancelled their linear TV subscription or never had one.
Roku devices that connect to TVs have become particularly trendy. A new report from research firm Conviva said Wednesday that connected TV streaming in the home has tripled since 2015, replacing computers as the "platform of choice for binge-watching."
Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.
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