Roku Slides as reopening leads to less streaming viewing
(Bloomberg) – Shares of Roku Inc. fell in extended trading on Wednesday after releasing second quarter results that beat expectations on key metrics.
The video streaming platform company reported 55.1 million active customer accounts for the quarter and 17.4 billion hours of streaming. The Bloomberg Consensus estimate was 55.8 million active customer accounts and 19.19 billion hours of streaming.
“In the near term, variable rates of recovery from the pandemic around the world continue to present an uncertain operating environment,” the company wrote in a letter to shareholders. He added that the easing of restrictions linked to the pandemic had resulted in a wider secular decline in overall television viewing.
Shares fell 7% after the market closed.
“We will certainly face some tough year-to-year comparisons in the second half of the year in terms of active accounts and streaming hours, but video streaming is a secular trend, not just a pandemic trend,” Steve Louden , CFO of Roku. , said in an interview. “We are happy with the continued shift to streaming by viewers and the fact that advertising dollars continue to stream” and move away from linear TV.
Roku forecasts net sales of $ 675 million to $ 685 million in the third quarter. Analysts’ consensus is for a turnover of $ 646.5 million.
For the second quarter, Roku’s revenue was $ 645.1 million, above the estimate of $ 613.1 million.
Roku shares are down around 12% from a record July close, although it is still up almost 50% from a May low, based on its most recent close . The stock rose 0.6% in Wednesday’s regular session.
(Adds comments from CFO and updates trading.)
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