Roku reported healthy growth in subscribers and streaming hours during the last three months of 2017 but a downbeat financial forecast and recent steep stock rises, saw the shares of the streaming device manufacturer take a hammering.
Although Roku’s Q1 revenue forecast only narrowly missed Wall Street targets, the stock’s big rise in recent months may have contributed to the steep sell off. Shares which have more than tripled since the company’s September IPO, were down as much as 21 per cent in after-hours trading.
Roku also forecast a net loss of between $40 million and $55 million for the full 2018 year. That’s deeper than the $35.9 million that analysts expected the company to lose for the year, according to the WSJ.
Here are the results versus Wall Street’s expectations:
Q4 Net Revenue: $188.3 million, up 28 per cent year-over-year.
Active accounts: 19.3 million up 44 per cent year-over-year.
Q4 Average Revenue per User: $13.78 vs. $9.28 in year ago quarter.
Q1 Revenue forecast: $120 million to $130 million.
Full year 2018 revenue forecast: $660 million to $690 million.