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Roku (ROKU) Reports Q4 Earnings: What Key Metrics Have to Say

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Roku (ROKU - Free Report) reported $984.43 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 13.5%. EPS of -$0.55 for the same period compares to -$1.70 a year ago.

The reported revenue represents a surprise of +2.58% over the Zacks Consensus Estimate of $959.66 million. With the consensus EPS estimate being -$0.65, the EPS surprise was +15.38%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Roku performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Active Accounts: 80 million versus 79.28 million estimated by seven analysts on average.
  • ARPU: $39.92 versus the six-analyst average estimate of $39.98.
  • Streaming Hours: 29.1 billion versus the five-analyst average estimate of 28.44 billion.
  • Net Revenue- Platform: $828.87 million versus $812.39 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +13.4% change.
  • Net Revenue- Devices: $155.56 million compared to the $147.21 million average estimate based on 10 analysts.
  • Gross Profit- Platform: $458.47 million versus the nine-analyst average estimate of $430.27 million.
  • Gross Profit- Devices: -$20.55 million versus -$21.56 million estimated by nine analysts on average.
View all Key Company Metrics for Roku here>>>

Shares of Roku have returned +8.6% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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