Streaming platform and device company Roku Inc (NASDAQ:ROKU) reported second-quarter financial results after market close Thursday.
Here are the highlights:
What Happened: Roku reported second-quarter revenue of $1.11 billion, up 15% year-over-year. The revenue total beat a Street consensus estimate of $1.07 billion according to data from Benzinga Pro.
The company reported platform revenue of $975.5 million, up 18% year-over-year. Devices revenue of $135.6 million was down 6% year-over-year.
The company said platform revenue growth came from a strong performance in video advertising and the acquisition of Frndly.
Roku reported earnings per share of 7 cents in the quarter, beating a Street consensus estimate of a loss of 16 cents per share.
Streaming hours were 35.4 billion in the quarter, up 5.2 billion hours year-over-year.
The company's Roku Channel was the number two app on the platform in terms of engagement in the U.S. The Roku Channel's Sunday MLB games saw a 40% year-over-year increase in average reach through the first seven broadcasts.
Roku highlighted a partnership with Amazon for advertising and said that it is making ad buying on the platform easier for the biggest brands in the world.
"We see a significant opportunity to serve digital-first, performance advertisers, and capture incremental ad dollars beyond traditional TV in digital budgets," the company said.
Read Also: Roku Set For Q2 Spotlight As Ad Resilience, Frndly Boost, Amazon Deal Fuel Investor Optimism
What's Next: Roku raised its full-year outlook for Platform revenue to $4.075 billion. Devices revenue is expected to decline year-over-year, impacted by tariffs. The company expects full-year revenue of $4.65 billion, up from a prior guide of $4.55 billion.
The company expects third-quarter revenue of $1.21 billion, up 13% year-over-year. Guidance calls for platform revenue growth of 16% year-over-year in the third quarter and devices revenue down 3% year-over-year.
Roku announced a $400 million stock repurchase program to help offset dilution from employee compensation and to deliver long-term shareholder value by boosting free cash flow per share.
ROKU Price Action: Roku stock is down 2.3% to $94.16 in after-hours trading Thursday versus a 52-week trading range of $48.33 to $104.96.
Read Next:
Photo: Shutterstock
