Roku’s First Quarter’s Revenue Growth of 1%
Streaming Accounts Grow More Than Expected to Hit 71.6 Million.
In a time of streaming crisis, one streaming service gains. It’s Roku, which, in the first quarter of 2023, earned 1.6 million active streaming accounts, above its – and Wall Street’s – expectations.
The company posted Q1 sales of $741 million, up 1%, and a net loss of $193.6 million, or $1.38 per share. On average, Wall Street analysts expected Roku to post Q1 of $708.49 million and a net loss of $1.37 per share.
Users streamed a record high of 3.9 hours daily per active account during the quarter, but the company told investors that the macroeconomic environment was still “challenged.”
In fact, revenue in Roku’s Platform segment declined by 1% to $635 million. The company generates Platform revenue through ad sales, the distribution of streaming services, the distribution of FAST channels, Roku Pay, and its media and entertainment promotional capabilities. “The macro environment remained challenged in Q1,” the company said in its shareholder letter. “Similar to our viewpoint during our last earnings call, we expect macro uncertainties to persist throughout 2023. Consumers remain pressured by inflation and recessionary fears, and thus discretionary spending is likely to remain muted.”
On March 10, Roku disclosed that the company held about 26% of its cash and cash equivalents at the failed Silicon Valley Bank, representing $487 million. The FDIC took over the bank’s assets and entered into a purchase and assumption agreement for all SVB deposits with First Citizens Bank.
Source: Variety
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Streaming Accounts Grow More Than Expected to Hit 71.6 Million.
In a time of streaming crisis, one streaming service gains. It’s Roku, which, in the first quarter of 2023, earned 1.6 million active streaming accounts, above its – and Wall Street’s – expectations.
The company posted Q1 sales of $741 million, up 1%, and a net loss of $193.6 million, or $1.38 per share. On average, Wall Street analysts expected Roku to post Q1 of $708.49 million and a net loss of $1.37 per share.
Users streamed a record high of 3.9 hours daily per active account during the quarter, but the company told investors that the macroeconomic environment was still “challenged.”
In fact, revenue in Roku’s Platform segment declined by 1% to $635 million. The company generates Platform revenue through ad sales, the distribution of streaming services, the distribution of FAST channels, Roku Pay, and its media and entertainment promotional capabilities. “The macro environment remained challenged in Q1,” the company said in its shareholder letter. “Similar to our viewpoint during our last earnings call, we expect macro uncertainties to persist throughout 2023. Consumers remain pressured by inflation and recessionary fears, and thus discretionary spending is likely to remain muted.”
On March 10, Roku disclosed that the company held about 26% of its cash and cash equivalents at the failed Silicon Valley Bank, representing $487 million. The FDIC took over the bank’s assets and entered into a purchase and assumption agreement for all SVB deposits with First Citizens Bank.
Source: Variety
Share:
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