On Wednesday, Roku reported better-than-feared fourth quarter results, surpassing analysts’ revenue estimates amid a streaming demand growth.
Its stock price went up by 12.09% to $63.49 per share on February 15. Likewise, it is anticipated to rise further by 10.36% to $70.07 apiece in the upcoming session.
The earnings per share of Roku was -$1.70, better than the experts’ -$1.72 forecast. Still, it is lower than the previous -$0.88 data.
Meanwhile, its revenue jumped by $867.10 million, beating the $802.12 estimates and higher than the $761.00 million figures.
According to the California-based company, ad spending on the platform exceeded the overall advertisement and traditional US TV markets. In addition, it has benefited from the rise of subscription-based streaming services.
Also, Roku pushes itself to release more original content on its streaming channel to gather more subscribers and advertisers.
Moreover, active user accounts increased by 16.00% to 70.00 million in the quarter. Its streaming hours rose by 23.00% to 23.90 billion hours.
Besides, the channel grew by 20.00% year-over-year. However, it was affected by a slowdown in advertising spend. The average revenue per user (ARPU) went up by 2.00% to $41.68 YoY.
On the other hand, the company had a Q1 2023 revenue guidance of around $700.00 million and a total gross profit of $310.00 million.
Pocket.watch Prolongs Deal with Roku
Since 2019, Pocket.watch and Roku have collaborated to bring free and family-friendly kids’ entertainment.
They created a new deal that will provide four new Pocket.watch specials plus one new series to be streamed on Roku.
Meanwhile, Jennifer Vaux, Head of Content Acquisition, said they are delighted with the collaboration. The contract would give viewers access to content that will star major kid actors and creators.
Also, this agreement includes 2,900 licensed videos, equivalent to 460 hours of Pocket.watch’s entertainment materials. They are popular with Roku’s audience, making it suitable to give users that type of in-demand programming.
Besides, the channel looks forward to working with the firm to continue entertaining families.