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Roku (ROKU) Reports Earnings Tomorrow. What To Expect

StockStory - Wed Feb 14, 1:01AM CST

ROKU Cover Image

Streaming TV platform Roku (NASDAQ: ROKU) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Roku reported revenues of $912 million, up 19.8% year on year, beating analyst revenue expectations by 6.6%. It was a very good quarter for the company, with a solid beat of analysts' revenue estimates and strong growth in its user base. The company reported 75.8 million monthly active users, up 15.9% year on year.

Is Roku buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Roku's revenue to grow 11.4% year on year to $966.3 million, improving on the 0.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.56 per share.

Roku Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Roku's peers in the consumer subscription segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Match Group delivered top-line growth of 10.2% year on year, beating analyst estimates by 0.6% and Coursera reported revenues up 18.8% year on year, exceeding estimates by 2.5%. Match Group traded flat on the results, and Coursera was up 3.5%.

Read our full analysis of Match Group's results here and Coursera's results here.

There has been positive sentiment among investors in the consumer subscription segment, with the stocks up on average 3.3% over the last month. Roku is up 5.9% during the same time, and is heading into the earnings with analyst price target of $90.2, compared to share price of $89.8.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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