Roku Inc (NASDAQ:ROKU) reported first-quarter financial results Thursday after market close.
Here are the key highlights.
• Roku stock is approaching key resistance levels. Why is ROKU stock breaking out?
Roku Q1 Financials
Roku reported first-quarter revenue of $1.248 billion, up 22% year-over-year. The revenue total beat a Street consensus estimate of $1.204 billion, according to data from Benzinga Pro.
Platform revenue was $1.13 billion in the quarter, up 28% year-over-year. This total consisted of advertising revenue of $612.7 million and subscription revenue of $518.5 million, which were up 27% and 30%, respectively, on a year-over-year basis.
Devices revenue was $117.6 million in the quarter, down 16% year-over-year.
Roku said it had 38.7 billion streaming hours in the quarter, up 8% year-over-year. The company-owned The Roku Channel was the number two app on the platform by U.S. engagement in the quarter.
The company highlighted strength in its advertising efforts, including AI-powered recommendations. Roku's video advertising growth outpaced the U.S. OTT and digital ad markets in the quarter.
Roku said it had its highest quarter ever for Premium Subscription sign-ups in the first quarter. The company also launched Apple TV and Peacock with Premium Subscriptions in March and April.
In April, Roku hit a milestone with more than 100 million streaming households globally now using a device powered by the Roku TV operating system.
What's Next For Roku
Roku is guiding for second quarter revenue of $1.295 billion. The current Street consensus estimate is $1.285 billion, according to data from Benzinga Pro.
The company expects Platform revenue to be up around 20% year-over-year in the second quarter and devices revenue to be down high-single digits year-over-year in the quarter. The revenue guidance would represent year-over-year growth of 17%.
Roku raised its full-year revenue outlook to $5.535 billion, up from a previous range of $5.50 billion. The new total consists of Platform revenue of $5.0 billion and Devices revenue of $535 million.
Roku Stock Price Action
Roku stock is up 4.33% to $121.61 in after-hours trading Thursday versus a 52-week trading range of $58.55 to $119.96.
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