Roku Inc. beat Wall Street estimates for quarterly sales and forecast full-year revenue largely above expectations on Thursday, as the video streaming device maker benefited from the launch of new streaming services, sending its shares up 10%.
The company expects full-year revenue to be in the range of $1.58 billion to $1.62 billion, the midpoint of which is above analysts’ estimate of $1.58 billion, according to IBES data from Refinitiv.
Walt Disney Co streaming platform Disney+ launched in November and reached 10 million sign-ups in its first day, while Apple Inc also introduced its streaming service Apple TV+ in the same month.
Streaming device makers have benefited alongside streaming service providers like Netflix and Amazon Prime Video as consumers cut the cord to cable or satellite TV and shift to subscription-based streaming services.
Roku has shifted its focus from device sales to advertising, which is now the company’s fastest-growing revenue stream, to tap the jump in number of streaming services providers.
The company charges a commission from media companies that stream programming on the free, ad-supported Roku channel.
Total net revenue jumped about 49% to $411.2 million, beating analysts’ average estimates of $391.6 million.
The company posted net loss attributable to common stockholders of $15.7 million, or 13 cents per share, in the fourth quarter ended Dec. 31, compared with a profit of $6.8 million, or 5 cents per share, a year earlier.
The loss of 13 cents per share matched Wall Street expectations.