Shares of Roku, Inc. (ROKU - Free Report) soared more than 10% on Monday morning, extending the new stock’s strong post-earnings run and signaling that Wall Street remains bullish on the company’s latest moves.
Last week, Roku posted its first earnings report as a publicly-traded company. The video streaming hardware brand posted a non-GAAP, pro forma loss of 10 cents per share, which was an improvement from the 17 cent loss posted in the prior-year quarter.
Roku also saw revenue figures of $124.782 million, up from the $89.053 witnessed in the year-ago period. Roku said that $67.254 million of this revenue was from sales of its players, while $57.528 came from its streaming platform.
Investors also reacted favorably to the news that Roku had recently acquired Dynastrom, a Danish firm focused on multi-room audio software. While Roku management has not specifically said how the company plans to use Dynastrom, many people assumed the buyout was a step towards developing a smart speaker (also read: Roku Stock Climbs After Possible Smart Speaker Acquisition).
“We are always looking to expand our engineering team, and the addition of Dynastrom allows us to scale the team further,” said a Roku spokesperson in a statement. “They will continue operations in Denmark as a subsidiary of Roku Inc. We are not disclosing any additional details related to the transaction.”
Roku did not announce how much it spent for the Danish firm, but the company did reveal an unspecified $3.5 million acquisition in a regulatory filing last week. And with in-home assistants from Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) in high demand, it makes sense that investors are excited about the potential for new hardware from Roku.
In the wake of the company’s first earnings report, and on the back of this bullish acquisition news, shares of Roku exploded last week. After closing at $18.84 per share on the day of its report, the stock closed at $33.25 per share, or about 76% higher, on Friday afternoon.
Thanks to several more bullish headlines, that strong momentum continued into Monday morning. For one, investors are giddy over Roku’s new partnership with Indian film behemoth Eros International .
In a press release published on Monday morning, Roku and Eros announced that Roku devices will now be able to stream Eros Now’s massive library of Bollywood and regional language films, TV shows, and original content for just $7.99 per month.
“We are happy to collaborate with a leading streaming innovator like Roku and continue our global expansion to provide seamless user experience. Eros Now’s extensive premium content can now reach millions of homes across North America and the UK through the Roku platform,” said Eros Digital CEO Rishika Lulla Singh.
Furthermore, Roku released its official Black Friday deals this week, and it looks like the company’s devices will be one of the best streaming hardware options this holiday season. For instance, the Roku Streaming Stick Plus, which includes 4K capabilities, will sell for just $50 at retailers around the country this Black Friday.
The video streaming industry is still booming, and although users have more hardware options than ever, Roku has already established itself as a leading brand. Roku management, industry analysts, and individual investors also appear to be optimistic about the company’s ability to monetize its streaming platform in the future.
By shoring up new revenue streams while its core products are still in-demand, Roku is positioning itself well right now.
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