Roku shares surge as company halves quarterly losses, adds 4 million streaming households

Roku shares surge as company halves quarterly losses, adds 4 million streaming households


Roku CEO Anthony Wood on Q4 results: Strong platform growth driven by our strategy

Shares of Roku surged more than 10% Friday, at one point reaching a new 52-week high, on earnings that beat Wall Street expectations.

In an interview on CNBC’s “Squawk Box,” CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.

Wood said the company added more than 4 million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.

The company’s growth was driven in part by the Roku user experience, including promoting content on his home screen, Wood told CNBC’s Julia Boorstin.

“We’re the number one streaming operating system in the country and in most of the Americas by a wide margin,” he said.

Here’s how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Loss per share: 24 cents vs. a loss of 40 cents expected
  • Revenue: $1.2 billion vs. $1.14 billion expected

The company boosted revenue by 22% to $1.2 billion. It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.

Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase. Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.

Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through “deeper third-party platform integrations,” the company said in its earnings release.

“Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,” Wood said.

The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.



Source

How Under Armour signed Stephen Curry away from Nike
Business

How Under Armour signed Stephen Curry away from Nike

In 2013, Stephen Curry shocked the sneaker world by signing with then-upstart athletic company Under Armour over basketball powerhouse Nike. At the time, Nike controlled the vast majority of the NBA sneaker market. Under Armour was virtually unheard of in the basketball space. “We’re the underdog brand. We’re for the ones that were maybe born […]

Read More
Private equity firm Roark Capital invests in fast-growing restaurant chain Dave’s Hot Chicken
Business

Private equity firm Roark Capital invests in fast-growing restaurant chain Dave’s Hot Chicken

Private equity firm Roark Capital has bought a majority stake in Dave’s Hot Chicken, the company announced on Monday. Financial terms were not disclosed, but Dave’s CEO Bill Phelps said on CNBC’s “Squawk Box” that the reported $1 billion valuation for the deal is “pretty close.” Since its founding in a Los Angeles parking lot […]

Read More
More office space is being removed than added for the first time in at least 25 years
Business

More office space is being removed than added for the first time in at least 25 years

After several years of deep distress, the beleaguered U.S. office market has reached an inflection point. This year, office conversions and demolitions will exceed new construction for the first time in at least 25 years. Simply put, more office space is being removed than added, shrinking the overall office footprint, according to exclusive new data […]

Read More