Roku Earnings: What Happened with ROKU

^{Source: Predictions based connected analysts' statement from Visible Alpha}

Roku (ROKU) Financial Results: Analysis

Roku, Inc. (ROKU) reported mixed Q3 FY 2021 earnings results. Earnings per share (EPS) crushed statement estimates, rising much than fivefold compared to the year-ago quarter. Revenue, however, came successful beneath expert forecasts, up 50.5% twelvemonth implicit twelvemonth (YOY).

The full fig of Roku's progressive accounts came successful astatine 56.4 cardinal for the quarter, conscionable missing analysts' expectations. The company's shares fell arsenic overmuch arsenic 9% successful after-market trading. Over the past year, Roku's shares person provided a total return of 54.1%, supra the S&P 500's total return of 38.3%.

ROKU Active Accounts

Roku's progressive accounts roseate 22.6% YOY, the slowest gait of maturation retired of immoderate 4th successful astatine slightest the past 4 years. Growth successful the company's idiosyncratic base, arsenic measured by progressive accounts, has been slowing the larger it becomes. Growth successful progressive accounts for each 4th successful FY 2018 ranged betwixt 40% and 46% YOY. By FY 2020, that scope had fallen to 37% to 42% YOY. Growth has continued to decelerate successful FY 2021.

Roku defines progressive accounts arsenic the fig of chiseled idiosyncratic accounts that person streamed contented connected its level sometime wrong the past 30 days of the period. Streamed contented from the Roku Channel lone connected non-Roku platforms does not number arsenic streamed contented for the intent of measuring progressive accounts. Also, the metric does not separate betwixt unsocial individuals streaming contented connected the aforesaid account. For example, household members streaming contented connected the aforesaid relationship lone number arsenic 1 progressive account. Nevertheless, the fig of progressive accounts volition beryllium intimately correlated with the fig of viewers, oregon targets for advertisers. The greater the fig of progressive accounts utilizing Roku's platform, the much charismatic the level volition beryllium to advertisers, which volition pull much advertisement spending.

Roku noted successful its net property merchandise that the slowdown successful progressive relationship maturation this 4th was mostly owed to planetary supply chain disruptions that person affected the U.S. market. On the affirmative side, Roku's average gross per user (ARPU) roseate 48.5% YOY to scope $40.10, passing the $40 milestone.

ROKU Outlook

Roku gave a midpoint estimation for its 4th fourth gross of $893 million, an summation of astir 37% YOY. Gross profit is expected to beryllium $385 cardinal astatine the midpoint, up 26% YOY. The institution said that the secular displacement from accepted TV to streaming TV supports its outlook contempt the impacts of the pandemic and planetary proviso concatenation disruptions that it believes volition transportation into 2022.

Roku's adjacent net study (for Q4 FY 2021) is estimated to beryllium released connected Feb. 24, 2022.