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Roku’s shares experienced a substantial increase of 14% on Friday, achieving a new 52-week high following the release of earnings that surpassed Wall Street’s expectations.
During an appearance on CNBC’s “Squawk Box,” CEO Anthony Wood highlighted that over half of all broadband households in the U.S. now utilize Roku for their television viewing.
In the latest quarter, Roku successfully expanded its user base by adding more than four million new streaming households and is on track to reach a significant milestone of 100 million streaming households within the upcoming year.
According to Wood, this growth can be attributed in part to an enhanced user experience, which includes improved content promotion on the Roku home screen. He emphasized Roku’s leading position in the market: “We’re the No. 1 streaming operating system in the country and in most of the Americas by a wide margin.”
Here’s a comparison of Roku’s fourth-quarter performance against Wall Street predictions, based on analyst surveys conducted by LSEG:
Loss per share: 24 cents vs. an anticipated loss of 40 cents Revenue: $1.2 billion vs. the expected $1.14 billion
Roku achieved a 22% increase in revenue, reaching $1.2 billion. Despite reporting a net loss of $35.5 million—equivalent to 24 cents per share—this reflects an improvement from the net loss of $78.3 million, or 55 cents per share, noted in the same quarter the previous year.
As of the end of 2024, Roku reported having 89.8 million streaming households, which represents a 12% increase year-over-year. However, the company plans to stop disclosing this particular metric starting next quarter, shifting its focus toward revenue and profitability figures in its earnings reports.
Additionally, the company noted an 18% rise in streaming hours year-over-year in the fourth quarter, with ongoing efforts to grow advertising demand through enhanced partnerships with third-party platforms, as detailed in their earnings release.
Wood stated, “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.”
Looking ahead, Roku is projecting net revenue of $1 billion and a gross profit of $450 million for the first quarter of 2025.
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