Roku beats quarterly revenue estimates on streaming boost

FILE PHOTO A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company’s IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid

(Reuters) – Roku Inc reported better-than-expected quarterly revenue on Thursday, as the video-streaming device maker benefited from an influx of cord-cutting subscribers dropping their cable packages in favor of streaming services.

The company was also aided by a 55% jump in streaming hours on its platform, as people sheltered home during the holiday season amid fresh pandemic curbs, turning to video-on-demand services like Netflix, Disney+ and The Roku Channel for entertainment.

Its total net revenue rose 58% to $649.9 million in the fourth quarter ended Dec. 31, beating analysts’ estimates of $617.25 million, according to IBES data from Refinitiv.

The company reported net income of $67.31 million, or 49 cents per share, compared with a net loss of $15.72 million, or 13 cents per share, a year earlier.

Reporting by Eva Mathews in Bengaluru; Editing by Maju Samuel

source: reuters.com