Roku Inc (NASDAQ:ROKU) shares added more than 16% in afterhours trading as its third-quarter revenue came in above Wall Street estimates.
The manufacturer of streaming and other home entertainment devices reported revenue of $913 million, up 20% year over year and ahead of estimates of $857.41 million.
The company attributed this growth to the strong performance across content distribution and video advertising and sales of its Roku-branded TVs which launched in March 2023.
Its loss per share, however, grew from $0.88 to a loss per share of $2.33. This missed the Street estimate of a loss per share of $1.99.
Active Accounts grew by 16% or 10.4 million year over year to 75.8 million.
“This strong top-line growth [in 3Q], in addition to cost reductions and measures we announced in September to further reduce our year-over-year OpEx growth rate enabled us to deliver positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA),” Roku said in a statement.
“We remain committed to achieving positive adjusted EBITDA for full year 2024 with continued improvements after that.”
For the fourth quarter, Roku projected revenue of $955 million, in line with analyst estimates.
Shares of Roku gained 16.3% at $69.41 following the release of its earnings report.
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