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ROKU's Q4 Results to Benefit From Growing Active Accounts
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Roku (ROKU - Free Report) is expected to have benefited from strong growth in active accounts in its fourth-quarter 2021, the earnings result for which is scheduled to be released on Feb 17.
Roku’s active accounts jumped 23% year over year to 56.4 million in third-quarter 2021.
The Zacks Consensus Estimate for fourth-quarter active accounts is pegged at 60 million, indicating an increase of 17.65% from the year-ago quarter’s figures.
Click here to know how Roku’s overall fourth-quarter results are likely to be.
Roku Channel’s Popularity to Negate Weak Player Revenues
Roku’s fourth-quarter performance is expected to benefit from steady active accounts growth at its free, ad-supported platform, The Roku Channel.
The ability to access free and premium content on the same platform has been a huge attraction for subscribers.
Availability of third-party streaming channels on the Roku platform, including Discovery’s Discovery+, Disney+, HBO Max, Paramount+, NBCUniversal as well as Peacock, Amazon Prime Video, AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in third-quarter 2021.
Discovery recently launched its popular and most complete food and cooking digital experience, Food Kitchen Network on the Roku platform in the United States.
In the last reported quarter, the company’s platform revenues reached $583 million, up 82% year-over-year. The Zacks Consensus Estimate for fourth-quarter platform revenues is currently pegged at $736 million, indicating a rise of 56% year over year.
In the third quarter, Roku’s player revenues were $97.4 million, down 26% year over year. The trend is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Player revenues is pegged at $158 million, suggesting an 11.7% decline from the figure reported in the year-ago quarter.
Roku’s advertising initiatives are likely to boost the top line in the to be reported quarter.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Roku also announced the launch of a new Shopify (SHOP - Free Report) app that will allow the merchants on the platform to easily build, buy and measure TV streaming advertising campaigns.
Roku’s addition to Shopify’s marketing solutions will be the first-ever TV streaming app available in the Shopify App Store. This will bring in more opportunities to small- and medium-sized businesses (SMBs), helping them build stronger brands and increase revenues through TV advertising.
Earlier in 2021, Roku and Nielsen entered into a strategic partnership to shape the future of media measurement and TV advertising in a streaming-first market.
Per the deal, Roku acquired Nielsen’s Advanced Video Advertising (AVA) business, which includes Nielsen’s video automatic content recognition (ACR) and dynamic ad insertion (DAI) technologies. The acquisition will accelerate Roku’s launch of an end-to-end DAI solution with TV programmers.
This Zacks Rank #4 (Sell) company’s expanding international presence in more than 20 countries like the U.K., Mexico, Brazil, the United States and Canada is expected to have been a key catalyst.
Image: Bigstock
ROKU's Q4 Results to Benefit From Growing Active Accounts
Roku (ROKU - Free Report) is expected to have benefited from strong growth in active accounts in its fourth-quarter 2021, the earnings result for which is scheduled to be released on Feb 17.
Roku’s active accounts jumped 23% year over year to 56.4 million in third-quarter 2021.
The Zacks Consensus Estimate for fourth-quarter active accounts is pegged at 60 million, indicating an increase of 17.65% from the year-ago quarter’s figures.
Click here to know how Roku’s overall fourth-quarter results are likely to be.
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
Roku Channel’s Popularity to Negate Weak Player Revenues
Roku’s fourth-quarter performance is expected to benefit from steady active accounts growth at its free, ad-supported platform, The Roku Channel.
The ability to access free and premium content on the same platform has been a huge attraction for subscribers.
Availability of third-party streaming channels on the Roku platform, including Discovery’s Discovery+, Disney+, HBO Max, Paramount+, NBCUniversal as well as Peacock, Amazon Prime Video, AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in third-quarter 2021.
Discovery recently launched its popular and most complete food and cooking digital experience, Food Kitchen Network on the Roku platform in the United States.
In the last reported quarter, the company’s platform revenues reached $583 million, up 82% year-over-year. The Zacks Consensus Estimate for fourth-quarter platform revenues is currently pegged at $736 million, indicating a rise of 56% year over year.
In the third quarter, Roku’s player revenues were $97.4 million, down 26% year over year. The trend is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Player revenues is pegged at $158 million, suggesting an 11.7% decline from the figure reported in the year-ago quarter.
Roku’s advertising initiatives are likely to boost the top line in the to be reported quarter.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Roku also announced the launch of a new Shopify (SHOP - Free Report) app that will allow the merchants on the platform to easily build, buy and measure TV streaming advertising campaigns.
Roku’s addition to Shopify’s marketing solutions will be the first-ever TV streaming app available in the Shopify App Store. This will bring in more opportunities to small- and medium-sized businesses (SMBs), helping them build stronger brands and increase revenues through TV advertising.
Earlier in 2021, Roku and Nielsen entered into a strategic partnership to shape the future of media measurement and TV advertising in a streaming-first market.
Per the deal, Roku acquired Nielsen’s Advanced Video Advertising (AVA) business, which includes Nielsen’s video automatic content recognition (ACR) and dynamic ad insertion (DAI) technologies. The acquisition will accelerate Roku’s launch of an end-to-end DAI solution with TV programmers.
This Zacks Rank #4 (Sell) company’s expanding international presence in more than 20 countries like the U.K., Mexico, Brazil, the United States and Canada is expected to have been a key catalyst.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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