(Ap) – Roku Inc., beat Wall Street estimates for the holiday quarter revenue and forecast full-year sales above expectations on Thursday, as the streaming video device maker, has benefited from the launch of the new streaming services from Disney, and Apple.
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
The shares of the company rose 6% after the bell.
Roku expects full-year revenue in the range of $1.58 billion to $1.62 billion, while analysts had expected $1.58 billion, according to IBES data, Refinitiv.
The 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 platforms, such as Netflix Inc. and Amazon.com Inc. ‘ s Prime Video, as consumers cut the cord to cable or satellite TV, and the shift to a subscription-based streaming services.
New products and services enhanced content on the platform, it is a positive thing for the fire lord, the Chief executive Officer (ceo), Steve Louden, told Reuters.
“It attracts more and more users to the platform, it drives the engagement, and that’s what gives us the basis to help you to make money, in one way or the other,” Louden said.
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.
Advertising is one of the biggest opportunities for the Roku, if the viewers are moving from traditional TV to streaming, Louden added.
The company charges a commission from the media companies to stream programming on the free, ad-supported Roku channels.
In added 4.6 million active accounts in the fourth quarter, bringing the total to 36.9 million at the end of the year.
“We can see that the client adds to an example of the Roku’s ability to make use of the growing interest in OTT for a new SVOD programs, such as Apple,+ Disney,+” D. A. Davidson analyst Tom Forte said.
Roku’s streaming devices will have to compete with the likes of Amazon’s Fire TV, Apple TV and Google’s Chromecast. Amazon said last month it had surpassed 40 million active users around the world for its streaming device.
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