Roku Inc (NASDAQ:ROKU) delivered a standout fourth-quarter earnings report, sending the company’s stock nearly 13% on Friday as investors responded to its strong financial performance and optimistic guidance.
The company delivered its first profitable quarter since 2021, posting a profit of $450 million, which beat expectations by $17.6 million.
Roku reported revenue of $1.2 billion for the quarter, exceeding analyst projections of $1.15 billion and an increase from the $984.4 million reported in the same period the previous year.
The platform's active user base expanded to 89.8 million streaming households, a strong indication of growing consumer adoption.
Meanwhile, total streaming hours reached an impressive 29.1 billion, equivalent to approximately 3.3 million years of content consumed, highlighting increased engagement across the platform.
Looking ahead, Roku provided optimistic guidance for the first quarter of 2025, projecting revenue of $1.01 billion, in line with market estimates. For the full year, Roku expects to generate $4.61 billion in revenue, reflecting a 12% increase from 2024, and has set an ambitious EBITDA target of $350 million, well above the previous estimate of $290.4 million.
Wall Street responded positively to Roku’s results, with Wedbush reiterating an "Outperform" rating and raising its 12-month price target to $125 from $100.
Analysts noted Roku’s strategic positioning in the shifting advertising landscape, as ad dollars continue to migrate from traditional television to connected TV.