Roku Inc Reports Q3 Results

Investong.com — Roku Inc (NASDAQ: ROKU) reported better-than-expected third-quarter results, but saw its shares fall 8% in after-hours trading, as investors focused on the company's fourth-quarter guidance.

Key Highlights

• Q3 Loss Per Share: -$0.06 (analysts estimated -$0.32)
• Revenue: $1.06 billion (consensus estimate: $1.02 billion)
• YoY Revenue Growth: 16%

Roku's Platform revenue, which includes advertising and content distribution, grew 15% YoY to $908 million. The company reported its fifth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow on a trailing 12-month basis.

Despite the strong Q3 performance, Roku's Q4 revenue guidance of $1.14 billion, while above consensus of $1.11 billion, seemed to disappoint investors, leading to the stock's decline. This guidance represents a 16% YoY growth, with Platform revenue expected to grow 14% YoY.

Anthony Wood, Founder and CEO of Roku, commented on the results, stating, "We delivered strong results in Q3, our first quarter of more than $1 billion in Total net revenue, with Platform revenue up 15% YoY."

Additional Metrics

• Streaming Households: 85.5 million (net increase of 2.0 million from the previous quarter)
• Streaming Hours: 32.0 billion (up 5.3 billion hours YoY)

Roku expects Q4 total gross profit of $465 million and Adjusted EBITDA of $30 million. The company remains confident in its ability to grow Platform revenue in 2025 and beyond, focusing on increasing ad demand, leveraging its Home Screen, and growing Roku-billed subscriptions.