When Roku Inc. (NASDAQ: ROKU) released third-quarter financial results after markets closed Wednesday, the company said that it had a net loss of $0.22 per share and $260.9 million in revenue. That compared with consensus estimates calling for a net loss of $0.28 per share and $256.36 million in revenue and to a net loss of $0.09 per share and $173.4 million posted in the same period of last year.
During the latest quarter, active accounts increased 1.7 million sequentially to 32.3 million, while streaming hours increased sequentially by 0.9 billion to 10.3 billion. Average revenue per user came to $22.58 on a trailing 12-month basis, up 30% year over year.
Platform revenues increased 79% year over year to $179.3 million, and Player revenues increased by about 11% to $81.6 million.
Looking ahead to the fourth quarter, the company expects to see $380 million to $396 million in revenue with a gross profit of roughly $156 million to $161 million. Consensus estimates call for a net loss of $0.04 per share and $386.57 million in revenue.
Anthony Wood, founder and CEO, commented:
We continue to execute well against our long-term strategic plan as the TV market shifts to streaming. In Q3, we beat our outlook for revenue, gross profit, and adjusted EBITDA. Our business momentum and competitive differentiation make Roku an essential partner for content publishers and advertisers. This is evident in the launch of major new streaming services on our platform and by the growth in the number of advertisers who work with Roku. We believe the dataxu acquisition will accelerate our platform’s advertising technology roadmap, strengthen our already industry-leading TV streaming platform and give us the opportunity to create an even more appealing offering for advertisers.
Shares of Roku closed Wednesday at $141.05, in a 52-week range of $26.30 to $176.55. The consensus price target is $137.53. Following the announcement, the stock was down 15% at $118.98 in the after-hours session.
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