Roku reported a 28% jump in sales in the first quarter, but the streaming company cited continued inflationary and supply-chain pressures in setting an outlook for the current period below expectations.
The company, which sells smart televisions with built-in streaming technology, as well as devices that users can plug into TVs, said total net revenue in the first quarter totaled $733.7 million, beating the $718 million analysts polled by FactSet were projecting.
Platform revenue, which includes revenue from advertisers and content publishers, rose 39% to $646.9 million, beating expectations.
In the quarter, active accounts reached 61.3 million. Analysts were expecting 61.8 million.
In a letter to shareholders, the company said that its account net adds moderated given the end of government stimulus payments. It also said that ongoing supply-chain disruptions pushed the cost of U.S. televisions up, resulting in industrywide sales that were below pre-pandemic levels.
For the current quarter, Roku expects total net revenue of $805 million, short of the $816 million analysts forecast.
The company said it has been operating an environment challenged by inflationary pressures, geopolitical conflict and supply-chain issues.
"In the near term, we expect these disruptions will continue to pressure our player gross margin and industry-wide TV unit sales," the company said in the letter signed by Chief Executive Anthony Wood and finance chief Steve Louden.
Shares rose 2.64% in after-hours trading. Shares were up 8.1% on Thursday during the trading session, closing at $91.63. The stock is down 74% over the last 12 months.
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