Roku

Roku’s (ROKU) guidance implications for its platform growth and operating costs for the rest of the year were “muted” even as the streaming device maker delivered a fourth-quarter revenue beat, Macquarie said Friday. The company late Thursday reported that its fourth-quarter net loss narrowed year over year to $0.55 per share from $1.70, while net revenue rose to $984.4 million from $867.1 million. Analysts polled by Capital IQ expected a GAAP loss of $0.53 on revenue of $968.1 million. Platform revenue grew to $828.9 million from $731.3 million. That metric is expected to benefit from Roku’s recent strategy to open up demand to third-party demand-side platforms and retail media networks, Macquarie said in a Friday note. That would allow the company to capture incremental connected TV advertisement dollars and diversify its advertiser base, analysts, including Tim Nollen, wrote. However, “ongoing weak (media and entertainment) sector spending looks like to cap […]

Roku Reports Active Accounts in Q4 of 80 Million Vs Visible Alpha Analyst Consensus of 78.7 Million; Streaming Hours at 29.1 Billion Vs Consensus of 28.3 Billion.

Roku: Users Streamed Record 29.1 Billion Hours in 4Q and 106.0 Billion Hours in 2023, the First Year in Which Roku Surpassed 100 Billion Hours.

Roku: Platform Gross Margin Was 55%, Relatively Flat YoY.

Streaming platform and hardware company Roku Inc (NASDAQ:ROKU) reported fourth-quarter financial results after the market close Thursday. Here are the key highlights. What Happened: Roku reported fourth-quarter revenue of $984.42 million, which was up 14% year-over-year. The revenue came in ahead of a Street consensus estimate of $966.3 million, according to data from Benzinga Pro. The company reported a loss of 55 cents per share, beating a Street estimate of a loss of 57 cents per share. Platform revenue was $828.9 million in the quarter, which was up 13% year-over-year. Devices revenue was $155.6 million in the quarter, which was up 15% year-over-year. Roku ended the fourth quarter with 80 million active accounts, up 14% year-over-year. The company added 4.2 million net accounts in the quarter. Average revenue per user was $39.92 in the fourth quarter, down 4% year-over-year. The company said it had 29.1 billion streaming hours in the fourth quarter, up

Roku, Inc. (NASDAQ: ROKU) reported Q4 net loss late Thursday of $0.55 per diluted share, narrowing from the loss of $1.70 a year earlier. Analysts polled by Capital IQ expected a loss of $0.55. Revenue in the quarter ended Dec. 31 rose to $984.4 million from $867.1 million a year earlier. Analysts surveyed by Capital IQ expected $967.1 million. In Q1, the company expects revenue of $850 million. Analysts in a Capital IQ poll expect $834.8 million. Roku shares slumped 14% in recent after-hours trading.

The following is a summary of the Roku, Inc. (ROKU) Q4 2023 Earnings Call Transcript: Financial Performance: Roku’s Q4 total net revenue grew 14% year-over-year to $984 million. Platform revenue was $829 million, a 13% increase from the previous year, driven by streaming services distribution and video advertising. Devices revenue increased by 15% year-over-year, led by the launch of Roku-branded TVs. Q4 total gross margin stood at 44%. Platform gross margin was stable at 55%, while device margin improved to negative 13% due to better supply chain costs and limited promotional discounts. Adjusted EBITDA for Q4 was $48 million, and free cash flow was $176 million over the last 12 months. Roku ended the quarter with over $2 billion in cash and cash equivalents. ARPU decreased by 4% to $39.92 in Q4 due to an increase in international active accounts. For Q1 2024, Roku projects a total net revenue of

Roku, Inc. (NASDAQ: ROKU) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/19/2024 — Seaport Global Upgrades Sell → Neutral 12/18/2023 -12.05% Seaport Global → $75 Downgrades Neutral → Sell 12/15/2023 -22.61% MoffettNathanson $64 → $66 Downgrades Neutral → Sell 11/27/2023 36.02% Cannonball Research → $116 Upgrades Neutral → Buy 11/02/2023 17.26% Susquehanna $95 → $100 Maintains Positive 11/02/2023 -12.05% Pivotal Research $58 → $75 Upgrades Sell → Hold 10/31/2023 -35.51% MoffettNathanson → $55 Upgrades Sell → Neutral 10/23/2023 -17.92% Truist Securities $80 → $70 Maintains Hold 10/11/2023 -5.02% Piper Sandler $90 → $81 Maintains Neutral 10/06/2023 — Seaport Global Initiates Coverage On → Neutral 09/28/2023 -8.54% Citigroup $100 → $78 Maintains Neutral 09/27/2023 — Raymond James Reinstates → Market Perform 09/07/2023 17.26% JP Morgan $95 → $100 Maintains Overweight 09/07/2023 19.61% DA Davidson $100 → $102 Maintains Buy 09/07/2023 17.26% Wedbush

New data points about digital ad spending bode well for streaming-device maker Roku, prompting a stock rating upgrade from one formerly bearish analyst. Seaport Research Partners analyst David Joyce is moving to a neutral rating from sell on the company after recent channel checks found digital ad buyers for a range of industry verticals and portfolio sizes are spending in the mid- to high-teen percentages within the ad-based streaming and internet-connected TV spaces. These new data points convey a 12% expected growth level for Roku’s 4Q, up from previous estimates for about 9.1% growth, Joyce says. He notes too that Roku has maintained its usage share and has a stronger demand profile among streamers.

The company has been facing headwinds in advertising growth, with streaming giants Disney+ (NYSE:DIS) and Netflix (NASDAQ:NFLX) launching ad tiers and from a broader spending pullback in media and entertainment, according to Seaport Research Partners. The Roku Analyst: David Joyce downgraded the rating for Roku from Neutral to Sell, while establishing a price target of $75. The Roku Thesis: With some improvement in industry digital ad growth expectations for the fourth quarter of 2023 and full-year 2024, this is higher than “our estimates for Roku, implying that the company could be losing share,” Joyce said in the downgrade note. Check out other analyst stock ratings. “While Roku still has ~$2.0B of cash on hand, which is plenty of cushion to handle our expectation of 4Q23E cash burn of $216MM and another $53MM next year, we think the business model is entering a more mature growth phase,” the analyst wrote. “While Roku still benefits from its

Roku, Inc. (NASDAQ: ROKU) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/18/2023 -20.25% Seaport Global → $75 Downgrades Neutral → Sell 12/15/2023 -29.82% MoffettNathanson $64 → $66 Downgrades Neutral → Sell 11/27/2023 23.35% Cannonball Research → $116 Upgrades Neutral → Buy 11/02/2023 6.34% Susquehanna $95 → $100 Maintains Positive 11/02/2023 -20.25% Pivotal Research $58 → $75 Upgrades Sell → Hold 10/31/2023 -41.51% MoffettNathanson → $55 Upgrades Sell → Neutral 10/23/2023 -25.56% Truist Securities $80 → $70 Maintains Hold 10/11/2023 -13.87% Piper Sandler $90 → $81 Maintains Neutral 10/06/2023 — Seaport Global Initiates Coverage On → Neutral 09/28/2023 -17.06% Citigroup $100 → $78 Maintains Neutral 09/27/2023 — Raymond James Reinstates → Market Perform 09/07/2023 6.34% JP Morgan $95 → $100 Maintains Overweight 09/07/2023 8.46% DA Davidson $100 → $102 Maintains Buy 09/07/2023 6.34% Wedbush $93 → $100 Maintains Outperform 09/07/2023 1.02% Susquehanna

Roku (NASDAQ:ROKU) Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/15/2023 -33.66% MoffettNathanson $64 → $66 Downgrades Neutral → Sell 11/27/2023 16.61% Cannonball Research → $116 Upgrades Neutral → Buy 11/02/2023 0.52% Susquehanna $95 → $100 Maintains Positive 11/02/2023 -24.61% Pivotal Research $58 → $75 Upgrades Sell → Hold 10/31/2023 -44.71% MoffettNathanson → $55 Upgrades Sell → Neutral 10/23/2023 -29.63% Truist Securities $80 → $70 Maintains Hold 10/11/2023 -18.58% Piper Sandler $90 → $81 Maintains Neutral 10/06/2023 — Seaport Global Initiates Coverage On → Neutral 09/28/2023 -21.59% Citigroup $100 → $78 Maintains Neutral 09/27/2023 — Raymond James Reinstates → Market Perform 09/07/2023 0.52% JP Morgan $95 → $100 Maintains Overweight 09/07/2023 2.53% DA Davidson $100 → $102 Maintains Buy 09/07/2023 0.52% Wedbush $93 → $100 Maintains Outperform 09/07/2023 -4.5% Susquehanna → $95 Reiterates Positive → Positive 09/07/2023 15.6% Benchmark $89 → $115 Maintains