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Investing.com -- Roku Inc (NASDAQ:ROKU) reported first-quarter results that beat analyst expectations, but shares fell over 5% in after-hours trading as second-quarter revenue guidance came in below estimates.
The streaming platform company posted Q1 revenue of $1.02 billion, slightly above the consensus estimate of $1.01 billion and up 16% year-over-year. Adjusted earnings per share were -$0.19, better than the -$0.26 analysts expected.
However, Roku’s Q2 revenue guidance of $1.07 billion fell short of Wall Street’s $1.12 billion forecast, likely driving the stock’s decline. The company maintained its full-year 2025 outlook for platform revenue of $3.95 billion and adjusted EBITDA of $350 million.
"In Q1 we grew Platform revenue 17%, in line with our outlook, with contributions from both video advertising and streaming services distribution activities," said Roku Founder and CEO Anthony Wood.
Platform revenue, which includes advertising and content distribution fees, rose 17% YoY to $880.8 million. Device revenue increased 11% to $139.9 million.
The company said The Roku Channel was now the #2 app on its platform in the U.S. by engagement. Streaming hours grew to 35.8 billion, up 5.1 billion hours from last year.
Roku shares were down 5.2% in after-hours trading following the earnings release. The company continues to monitor the macro environment but reaffirmed its full-year outlook.