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ROKU Gears Up to Report Q2 Earnings: What's in the Cards?
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Roku (ROKU - Free Report) is set to report second-quarter 2022 results on Jul 28.
For second-quarter 2022, Roku expects total net revenues of $805 million. The consensus mark for revenues is pegged at $805.2 million, indicating 24.8% growth from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss has widened by 1 cent to 77 cents per share in the past 30 days. The figure suggests a 248.08% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 426.19%.
Let’s see how things have shaped up for this announcement.
Roku’s second-quarter performance is expected to have benefited 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.
On Jun 28, Roku announced that it is partnering with NBCUniversal Local to bring several NBC local news channels to The Roku Channel. The partnership with NBCUniversal Local marks the first time that local news programming will be available for users on The Roku Channel.
The availability of third-party streaming channels on the Roku platform, including Disney+, HBO Max, Paramount+, NBCUniversal, Peacock, Amazon’s (AMZN - Free Report) Prime Video, Apple’s (AAPL - Free Report) AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in second-quarter 2022.
The Zacks Consensus Estimate for Platform revenues is pegged at $701 million, indicating growth of 31.8% from the figure reported in the year-ago quarter.
In first-quarter 2022, Roku’s active accounts rose 14% year over year to 61.3 million, driven by the popularity of Roku streaming players and Roku TV models.
The average revenue per user (“ARPU”) rose 34% from the prior-year quarter’s levels to $42.91 (on a trailing 12-month basis).
The Zacks Consensus Estimate for second-quarter active accounts and ARPU is pegged at $62 million and $44.82, respectively, indicating an increase of 12.7% and 22.9% from the year-ago quarter’s reported figures.
In first-quarter 2022, Roku users streamed 20.9 billion hours, up 14% year over year. In the to-be-reported quarter as well, streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours is pegged at 20.63 billion, suggesting an increase of 18.6% from the year-ago quarter’s reported figure.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. On May 3, Roku announced new advertising solutions across The Roku Channel, Roku Brand Studio, and OneView, to create a better TV advertising experience for marketers in the streaming space.
This Zacks Rank #3 (Hold) company’s expanding international presence in more than 20 countries like the United Kingdom, 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.
Advertisers, however, continue to face supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising. This is expected to have reflected on ad revenue growth in the to-be reported quarter.
Key Developments in Q2
Roku and Warner Bros. Discovery announced the launch of discovery+ as a premium subscription on The Roku Channel in second-quarter 2022. Users can subscribe to both, the ad-free ($6.99) and the ad-supported ($4.99) versions of discovery+, directly through The Roku Channel.
Moreover, Roku announced that a multi-year extension with Amazon for their distribution agreement. Per the agreement, customers will continue to have access to Prime Video and IMDb TV on their Roku devices. However, the terms of the agreement have not been disclosed.
In the to-be-reported quarter, Roku announced that Apple’s premium music subscription service, Apple Music, is now available on the Roku Platform, globally. Apple Music subscribers are now able to stream music on any Roku device, including Roku TV models, Roku streaming players and other Roku premium products.
On Jun 16, Roku entered into an agreement with Walmart (WMT - Free Report) to make TV streaming the next e-commerce shopping destination. According to this first-of-a-kind partnership, TV viewers can use their remote to purchase from a shoppable TV ad, directly from Roku via Roku Pay. According to the deal, Walmart will be the exclusive retailer, allowing streamers to purchase their product of choice.
Image: Bigstock
ROKU Gears Up to Report Q2 Earnings: What's in the Cards?
Roku (ROKU - Free Report) is set to report second-quarter 2022 results on Jul 28.
For second-quarter 2022, Roku expects total net revenues of $805 million. The consensus mark for revenues is pegged at $805.2 million, indicating 24.8% growth from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss has widened by 1 cent to 77 cents per share in the past 30 days. The figure suggests a 248.08% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 426.19%.
Let’s see how things have shaped up for this announcement.
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
Factors to Consider
Roku’s second-quarter performance is expected to have benefited 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.
On Jun 28, Roku announced that it is partnering with NBCUniversal Local to bring several NBC local news channels to The Roku Channel. The partnership with NBCUniversal Local marks the first time that local news programming will be available for users on The Roku Channel.
The availability of third-party streaming channels on the Roku platform, including Disney+, HBO Max, Paramount+, NBCUniversal, Peacock, Amazon’s (AMZN - Free Report) Prime Video, Apple’s (AAPL - Free Report) AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in second-quarter 2022.
The Zacks Consensus Estimate for Platform revenues is pegged at $701 million, indicating growth of 31.8% from the figure reported in the year-ago quarter.
In first-quarter 2022, Roku’s active accounts rose 14% year over year to 61.3 million, driven by the popularity of Roku streaming players and Roku TV models.
The average revenue per user (“ARPU”) rose 34% from the prior-year quarter’s levels to $42.91 (on a trailing 12-month basis).
The Zacks Consensus Estimate for second-quarter active accounts and ARPU is pegged at $62 million and $44.82, respectively, indicating an increase of 12.7% and 22.9% from the year-ago quarter’s reported figures.
In first-quarter 2022, Roku users streamed 20.9 billion hours, up 14% year over year. In the to-be-reported quarter as well, streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours is pegged at 20.63 billion, suggesting an increase of 18.6% from the year-ago quarter’s reported figure.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. On May 3, Roku announced new advertising solutions across The Roku Channel, Roku Brand Studio, and OneView, to create a better TV advertising experience for marketers in the streaming space.
This Zacks Rank #3 (Hold) company’s expanding international presence in more than 20 countries like the United Kingdom, 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.
Advertisers, however, continue to face supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising. This is expected to have reflected on ad revenue growth in the to-be reported quarter.
Key Developments in Q2
Roku and Warner Bros. Discovery announced the launch of discovery+ as a premium subscription on The Roku Channel in second-quarter 2022. Users can subscribe to both, the ad-free ($6.99) and the ad-supported ($4.99) versions of discovery+, directly through The Roku Channel.
Moreover, Roku announced that a multi-year extension with Amazon for their distribution agreement. Per the agreement, customers will continue to have access to Prime Video and IMDb TV on their Roku devices. However, the terms of the agreement have not been disclosed.
In the to-be-reported quarter, Roku announced that Apple’s premium music subscription service, Apple Music, is now available on the Roku Platform, globally. Apple Music subscribers are now able to stream music on any Roku device, including Roku TV models, Roku streaming players and other Roku premium products.
On Jun 16, Roku entered into an agreement with Walmart (WMT - Free Report) to make TV streaming the next e-commerce shopping destination. According to this first-of-a-kind partnership, TV viewers can use their remote to purchase from a shoppable TV ad, directly from Roku via Roku Pay. According to the deal, Walmart will be the exclusive retailer, allowing streamers to purchase their product of choice.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.