Roku posted $188.3 million revenue, when Yahoo! Finance estimates showed $182.5 million. It’s also up from $147.3 million in the same period last year. Earnings per share was 6 cents, much better than the negative 10 cents that Wall Street forecast.
However, the earnings per share for the quarter wasn’t considered comparable to the analyst expectations because of a $2.3 million debt charge. Yet it was still much better than what Wall Street predicted because of significant growth in Roku’s platform business, which includes licensing fees and ad revenue.
Revenue for last year was $513 million, 29% growth from the year prior. The number of active accounts increased 44%, ending the year totaling 19.3 million.
So what’s spooking investors?
There was an issue with guidance. Roku said that next quarter it expects $120 million to $130 million in revenue, beneath the $131.7 million that experts were forecasting.Investors are also worried about the decline in Roku’s device business. Its player revenue was $102.8 million, down from $110 million in the same period the year before.
The stock drop is a big disappointment for Roku investors, for what otherwise has been a very solid run. Roku went public on the stock market last year and has since nearly quadrupled its share price.
The company went public at $14 per share and closed Wednesday at $51.10.
Roku has a market cap of $5 billion.
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| Roku Image: TechCrunch |
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