Roku Inc. (ROKU) shares spiked by more than 30% today after the streaming device and TV maker reported earnings results well ahead of analyst predictions for the third quarter alongside strong subscriber growth.
For the third quarter, Roku achieved an all-time high of 75.8 million active accounts, a net increase of 16% compared with the prior-year quarter. This represents a net increase of 2.3 million accounts over the second quarter of this year. Analysts had expected active accounts to reach 75.3 million for the third quarter. Roku's revenue growth also outpaced analyst estimates. The company reported a 20% year-over-year increase, reaching $912 million for the quarter, against predictions of $855 million.
Roku said the better-than-expected revenue improvement was driven by "strong performance in content distribution and video advertising." The company's Roku TV line, which launched in March, also contributed to revenue gains and helped to drive net active account additions.
Roku's net losses widened significantly, to $330.1 million for the quarter compared to $122.2 million in the prior-year quarter. Losses per share nearly tripled to $2.33.
Price Momentum
ROKU is trading in the middle of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors are still evaluating the share price, but the stock still appears to have some upward momentum. This is a positive sign for the stock's future value.
For the third quarter, Roku achieved an all-time high of 75.8 million active accounts, a net increase of 16% compared with the prior-year quarter. This represents a net increase of 2.3 million accounts over the second quarter of this year. Analysts had expected active accounts to reach 75.3 million for the third quarter. Roku's revenue growth also outpaced analyst estimates. The company reported a 20% year-over-year increase, reaching $912 million for the quarter, against predictions of $855 million.
Roku said the better-than-expected revenue improvement was driven by "strong performance in content distribution and video advertising." The company's Roku TV line, which launched in March, also contributed to revenue gains and helped to drive net active account additions.
Roku's net losses widened significantly, to $330.1 million for the quarter compared to $122.2 million in the prior-year quarter. Losses per share nearly tripled to $2.33.
Price Momentum
ROKU is trading in the middle of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors are still evaluating the share price, but the stock still appears to have some upward momentum. This is a positive sign for the stock's future value.
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