Roku Inc.'s stock fell 12.5% in after-hours trade Wednesday, after the streaming platform posted another quarterly loss and flat average revenue per user.
Roku (ROKU) posted a third-quarter net loss of $9.03 million, or 6 cents a share, for the quarter, narrower than the loss of $330.1 million, or $2.33 a share, posted in the year-earlier period. The FactSet consensus was for a loss of 32 cents.
Revenue rose to $1.062 billion from $912.0 million a year ago, ahead of the FactSet consensus of $1.016 billion.
Roku said its number of streaming households rose 13% to 85.5 million, and the number of streaming hours was up 20% to 32.0 billion in the quarter. Average revenue per user was flat at $41.10.
"As we look forward, we remain focused on growing platform revenue," the company said in a statement.
Key initiatives include innovating its home screen to expand monetization, growing ad demand through deeper third-party platform integrations and growing Roku-billed subscriptions, according to the statement.
The company is now expecting fourth-quarter revenue of $1.140 billion, while FactSet is expecting $1.111 billion.
It expects its fourth-quarter loss to come to $65 million, just ahead of the $64 million loss forecast by FactSet analysts.
Roku said that starting with the first quarter of 2025, it will no longer offer quarterly updates on streaming households and average revenue per user. The company's key performance metrics will instead be streaming hours; platform revenue; adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization; and free cash flow.
"We remain committed to growing all these metrics over time," Roku said.
The stock has fallen 15% year to date, while the S&P 500 has gained 22%.
Comments