Copyright Benzinga
Streaming company Roku Inc (NASDAQ:ROKU) reported third-quarter financial results Thursday after market close. Here are the key highlights. What Happened: Roku reported third-quarter net revenue of $1.211 billion, up 14% year-over-year. The revenue total beat a Street consensus estimate of $1.206 billon, according to data from Benzinga Pro. The company reported third-quarter platform revenue of $1.06 billion, up 17% year-over-year and devices revenue of $146.0 million, down 5% year-over-year. Roku said platform revenue was boosted by strong streaming services distribution and video advertising activities. Third-quarter earnings per share were 16 cents per share, beating a Street consensus estimate of 9 cents per share. "We delivered strong Q3 results, achieving positive operating income ahead of schedule and for the first time since 2021," the company said. Streaming hours for the company were 36.5 billion in the quarter, up 4.5 billion hours year-over-year. The Roku Channel was the number two app on the platform for engagement in the United States. The company said video advertising on Roku grew faster year-over-year than the overall digital advertising market in the United States. Read Also: Roku Enters Portable Entertainment Market With Smart Projector What's Next: Roku expects fourth quarter net revenue to be $1.35 billion, up 12% year-over-year. The company expects fourth-quarter platform revenue to be up 15% year-over-year and devices revenue to be in line year-over-year. The company raised its full-year platform revenue estimate to $4.11 billion, up 17% year-over-year. Roku also raised its full-year Adjusted EBITDA forecast to $395 million. "We remain confident in our strategy and our long-term growth. We see significant opportunity to drive double-digit growth in Platform revenue in 2026 and beyond while increasing profitability," the company said. ROKU Price Action: Roku stock is down 7.5% to $92.56 in after-hours trading Thursday versus a 52-week trading range of $52.43 to $107.25. Read Next: Cathie Wood’s Top 10 Stock Picks: Unpacking Ark Funds Innovation Picks For The Next Decade Image created using artificial intelligence via Midjourney.
