Stocks in Asia traded lower on Monday morning, as investors await the start of a Nasdaq-style technology board on the Shanghai Stock Exchange.Asia Marketsread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
Shares eased off shortly after the report to trade roughly 10 percent lower than Wednesday's close of $58.86
Here's how the company did compared with what Wall Street was expecting:
Roku raised full-year revenue guidance to a range of $722 million to $732 million, up from a previous range of $710 million to $730 million. That new guidance comes in just above Wall Street estimates of $722.8 million, according to Refinitiv estimates.
The company made its name selling over-the-top streaming devices and striking up partnerships with content companies like Netflix and Hulu. Roku has been trying to move beyond hardware though, introducing a curated Roku channel of free movies and TV for device owners.
Roku said in its earning report it's "thrilled with the results," but it's not immediately clear the strategy is paying off as quickly as hoped.
Revenue from Roku players handily beat Wall Street estimates, totaling $73.3 million compared with $67 million forecast by StreetAccount and FactSet. Revenue from the company's platform segment, though, came in below analyst projects. Roku posted $100.1 million for the division, compared with $103.2 million forecast by StreetAccount and FactSet.
Roku reported 23.8 million active accounts and 6.2 billion streaming hours for the third quarter, exceeding StreetAccount estimates of 23.1 million accounts and 5.8 billion hours.
"As our scale has increased, Roku has become a more important platform for content providers and advertisers, driving both engagement and monetization," Roku said in a third-quarter shareholder letter. "A key differentiator, and competitive moat, is our direct relationship with customers on our platform which allows us to continuously collect rich data, including user registration, and anonymized behavioral information."
The company doesn't make quite as much money per user as Wall Street predicted, reporting average revenue per user (ARPU) of $17.34, compared with $17.44 forecast by StreetAccount.