Shares of Roku Inc (ROKU) tumbled 5.53% in after-hours trading on Thursday following the release of its third-quarter earnings report. Despite beating revenue expectations for Q3, the streaming platform provider's stock took a hit as investors focused on its disappointing outlook for the fourth quarter.

Roku reported Q3 revenue of $1.211 billion, slightly above the consensus estimate of $1.206 billion and representing a 14% year-over-year increase. However, the company's forecast for Q4 revenue growth of 12% signaled a continued deceleration from the 14% growth in Q3 and 15% in Q2. This slowdown, particularly in the crucial platform segment, which includes ad sales and subscriptions, raised concerns among investors about Roku's future growth trajectory.

Adding to the negative sentiment, Roku reported 36.5 billion streaming hours for Q3, falling short of analysts' expectations of 37.6 billion hours. The company also noted that advertisers remain cautious with their budgets amid economic uncertainty, creating a challenging environment for platforms dependent on ad revenue. Despite these headwinds, Roku managed to achieve its first positive operating income since 2021, but this silver lining was overshadowed by growth concerns. As competition intensifies in the streaming and advertising markets, investors appear to be recalibrating their expectations for Roku's performance in the coming quarters.