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For fourth-quarter 2023, Roku expects total net revenues of $955 million, total gross profit of $405 million and adjusted EBITDA of negative $10 million.
The consensus mark for revenues is pegged at $959.66 million, indicating 10.68% growth from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss per share has remained unchanged at 65 cents per share in the past 30 days. The figure suggests growth of 61.76% from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in one, the average earnings surprise being 9.67%.
Let’s see how things have shaped up for this announcement.
Roku’s fourth-quarter performance is expected to have benefited from the growing popularity of The Roku Channel, expanding TV brands & retailer partner base and third-party streaming channels.
Roku has become the No. 1 TV streaming platform by hours streamed in the United States, Canada and Mexico. Globally, users streamed a record of 26.7 billion hours in the third quarter, up 1.6 billion hours from the prior quarter.
In the to-be-reported quarter, Roku unveiled two fresh additions to the Roku Home Screen, such as All Things Food and All Things Home. These new destinations bring together top-notch food, home and lifestyle content from various sources on the platform, creating seamless and engaging discovery experiences.
Both All Things Food and All Things Home will showcase a diverse array of streaming options within their respective categories, encompassing free and subscription-based services, live and linear TV, Premium Subscriptions, Roku Originals and more.
These new features are expected to have boosted streaming hours as well as platform revenues in the fourth quarter.
The Zacks Consensus Estimate for streaming hours is pegged at 28.44 billion, indicating growth of 19% from the figure reported in the year-ago quarter.
Active account net adds were 2.3 million in the third quarter, taking the total active accounts to 75.8 million globally, representing greater engagement in Roku TV and more monetization opportunities.
The Zacks Consensus Estimate for active accounts is pegged at 79 million, indicating growth of 12.9% from the figure reported in the year-ago quarter.
However, supply chain issues are causing disruptions in its player unit sales in terms of shipping delays, product availability issues and product price increases.
Both consumers and advertisers have significantly curtailed spending due to inflation and recessionary fear, which is expected to have negatively impacted the company’s earnings for the quarter.
In the third quarter, the average revenue per user (ARPU) declined 7% from the prior-year quarter’s levels to $41.03 (on a trailing 12-month basis). The Zacks Consensus Estimate for ARPU is pegged at $39.98, indicating a decline of 4.1% from the figure reported in the year-ago quarter.
What Our Model Indicates
Our proven model does not predict an earnings beat for ROKU this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Roku has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Per our model, Duolingo (DUOL - Free Report) , NVIDIA (NVDA - Free Report) and Block (SQ - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Duolingo has an Earnings ESP of +22.09% and sports a Zacks Rank #1 at present. Duolingo is set to announce fourth-quarter 2023 results on Feb 28. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 114.01%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DUOL’s earnings is pinned at 17 cents per share, indicating growth from the year-ago quarter’s loss of 35 cents per share. The consensus mark for revenues is pegged at $146.95 billion, suggesting a year-over-year rise of 41.55%.
NVIDIA has an Earnings ESP of +5.26% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%.
The Zacks Consensus Estimate for NVIDIA’s fourth-quarter earnings is pegged at $4.51 per share, indicating a year-over-year increase of 412.5%. The consensus mark for revenues stands at $20.18 billion, calling for a year-over-year rise of 233.5%.
Block has an Earnings ESP of +1.05% and carries a Zacks Rank #3 at present. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 11%.
The Zacks Consensus Estimate for Block’s fourth-quarter earnings is pinned at 60 cents per share, indicating a year-over-year rise of 172.7%. It is estimated to report revenues of $5.69 billion, which suggests an increase of approximately 22.3% from the year-ago quarter.
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ROKU Gears Up to Report Q4 Earnings: What's in the Cards?
Roku (ROKU - Free Report) is set to report fourth-quarter 2023 results on Feb 15.
For fourth-quarter 2023, Roku expects total net revenues of $955 million, total gross profit of $405 million and adjusted EBITDA of negative $10 million.
The consensus mark for revenues is pegged at $959.66 million, indicating 10.68% growth from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss per share has remained unchanged at 65 cents per share in the past 30 days. The figure suggests growth of 61.76% from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in one, the average earnings surprise being 9.67%.
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 fourth-quarter performance is expected to have benefited from the growing popularity of The Roku Channel, expanding TV brands & retailer partner base and third-party streaming channels.
Roku has become the No. 1 TV streaming platform by hours streamed in the United States, Canada and Mexico. Globally, users streamed a record of 26.7 billion hours in the third quarter, up 1.6 billion hours from the prior quarter.
In the to-be-reported quarter, Roku unveiled two fresh additions to the Roku Home Screen, such as All Things Food and All Things Home. These new destinations bring together top-notch food, home and lifestyle content from various sources on the platform, creating seamless and engaging discovery experiences.
Both All Things Food and All Things Home will showcase a diverse array of streaming options within their respective categories, encompassing free and subscription-based services, live and linear TV, Premium Subscriptions, Roku Originals and more.
These new features are expected to have boosted streaming hours as well as platform revenues in the fourth quarter.
The Zacks Consensus Estimate for streaming hours is pegged at 28.44 billion, indicating growth of 19% from the figure reported in the year-ago quarter.
Active account net adds were 2.3 million in the third quarter, taking the total active accounts to 75.8 million globally, representing greater engagement in Roku TV and more monetization opportunities.
The Zacks Consensus Estimate for active accounts is pegged at 79 million, indicating growth of 12.9% from the figure reported in the year-ago quarter.
However, supply chain issues are causing disruptions in its player unit sales in terms of shipping delays, product availability issues and product price increases.
Both consumers and advertisers have significantly curtailed spending due to inflation and recessionary fear, which is expected to have negatively impacted the company’s earnings for the quarter.
In the third quarter, the average revenue per user (ARPU) declined 7% from the prior-year quarter’s levels to $41.03 (on a trailing 12-month basis). The Zacks Consensus Estimate for ARPU is pegged at $39.98, indicating a decline of 4.1% from the figure reported in the year-ago quarter.
What Our Model Indicates
Our proven model does not predict an earnings beat for ROKU this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Roku has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Per our model, Duolingo (DUOL - Free Report) , NVIDIA (NVDA - Free Report) and Block (SQ - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Duolingo has an Earnings ESP of +22.09% and sports a Zacks Rank #1 at present. Duolingo is set to announce fourth-quarter 2023 results on Feb 28. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 114.01%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DUOL’s earnings is pinned at 17 cents per share, indicating growth from the year-ago quarter’s loss of 35 cents per share. The consensus mark for revenues is pegged at $146.95 billion, suggesting a year-over-year rise of 41.55%.
NVIDIA has an Earnings ESP of +5.26% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%.
The Zacks Consensus Estimate for NVIDIA’s fourth-quarter earnings is pegged at $4.51 per share, indicating a year-over-year increase of 412.5%. The consensus mark for revenues stands at $20.18 billion, calling for a year-over-year rise of 233.5%.
Block has an Earnings ESP of +1.05% and carries a Zacks Rank #3 at present. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 11%.
The Zacks Consensus Estimate for Block’s fourth-quarter earnings is pinned at 60 cents per share, indicating a year-over-year rise of 172.7%. It is estimated to report revenues of $5.69 billion, which suggests an increase of approximately 22.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.