- Roku reported fourth-quarter 2017 earnings on Wednesday.
- The company beat Q4 expectations, but gave a weaker than expected revenue forecast for Q1.
- Shares of Roku plunged more than 20% in after hours trading.
ADVERTISEMENT
Roku's revenue forecast for Q1 was just shy of Wall Street targets but the stock is getting destroyed (ROKU)
Roku, the maker of connected TV boxes and software for smart TVs, reports its quarterly earnings after the markets close Wednesday.
ADVERTISEMENT
Recommended articles
Roku, the maker of connected TV boxes and software for smart TVs, reported healthy growth in subscribers and streaming hours during the last three months 2017 but gave a lackluster financial forecast for the current quarter that sent its stock tumbling in after hours trading on Wednesday.
Although Roku's Q1 revenue forecast only narrowly missed Wall Street targets, the stock's meteoric rise in recent months may have contributed to the steep sell off on Wednesday.
Shares of Roku, which have more than tripled since the company's September IPO, were down as much as 21% in after-hours trading Thursday following the release of its results.
ADVERTISEMENT
Roku also forecast a net loss of between $40 million and $55 million for the full 2018 year. That's deeper than the $35.9 million that analysts expected the company to lose for the year, according to Wall Street Journal report.
Here are the results versus Wall Street's expectations:
- Q4 EPS (adjusted):
- Q4 Net Revenue:
- Active accounts:
- Q4 Average Revenue per User:
- Q1 Revenue forecast:
- Full year 2018 revenue forecast:
Roku has been on a huge run since it went public last year. Even though it faces competition from tech giants like Apple, Google, and Amazon, Roku's stock is nearly triple its IPO price. Part of the stock's success is tied to the company's success with its ad platform.
The company sells low-cost hardware devices that allow consumers to easily stream internet video, such as Netflix, onto their TVs. But Roku has been shifting its business to becoming an online video streaming "platform" that can be built directly into TVs and can serve as the home screen for the growing number of "cord cutters."
ADVERTISEMENT
FOLLOW BUSINESS INSIDER AFRICA
ADVERTISEMENT
Recommended articles
How SafeHamsters unlocks the potential of crypto betting| Insider Tips
A look into the diverse tax reforms being implemented across Africa
Dubai firm to lend South Sudan $12.9 billion in exchange for 20 years oil repayment
China dethrones USA as the most influential global power in Africa: Report
Major African economies expecting inflation ease into next year, except Nigeria
10 African countries with the lowest price changes in household commodities
Dangote refinery outranks Europe's 10 largest refining facilities
Africa may just have the lowest level of cyber threats compared to other regions
