FILE PHOTO, A sign displays the logo for the Roku Inc., the Fox-backed video company in the heart of Times Square, after the company’s initial public OFFERING on the Market and on Nasdaq in New York, New York, united states of america, September 28, 2017. REUTERS/Brendan McDermid/File Photo
(Ap) – Roku Inc. beat Wall Street’s estimates for revenues from quarter to quarter and forecast full-year revenue largely above expectations on Thursday, as the streaming video device maker, has benefited from the launch of the new streaming services, sending its shares up 10 percent.
The company expects full-year revenue to be in the range of $1.58 billion to $1.62 billion, the midpoint of which is above the analysts ‘ estimate of $1.58 billion, according to IBES data, Refinitiv.
Walt Disney Co’s streaming platform, Disney+, launched in November, and a 10-million-sign-ups for the first day, while Apple Inc. also launched a streaming service to the Apple TV at the same time.
Flash device makers have benefited from the addition of streaming service providers like Netflix and Amazon’s Prime Video, as consumers cut the cord to cable or satellite TV, and the shift to a subscription-based streaming services.
The Roku has shifted its focus from the sale of advertising, which is now the company’s fastest growing revenue stream, the jump in the number of streaming service providers.
The company charges a commission from the media companies to stream programming on the free, ad-supported Roku channels.
Overall, net income jumped 49% to $411.2 million, which beat analysts ‘ average estimates of $391.6 million.
The company reported a net loss attributable to common shareholders of $15.7 million, or 13 cents per diluted share, for the fourth quarter ended dec. 31, compared with a net profit of $6.8 million, or 5 cents a share, a year earlier.
It’s a loss of 13 cents per share, matched Wall Street’s expectations.
Report by Ayanti Berra in Bengaluru; Editing by shailesh Kuber and Sriraj Kalluvila