Roku (ROKU - Free Report) reported third-quarter 2019 loss of 22 cents per share that was narrower than the Zacks Consensus Estimate of a loss of 28 cents. The company had reported loss of 9 cents per share in the year-ago quarter.
Revenues soared 50.5% from the year-ago quarter to $260.9 million and comfortably beat the consensus mark of $258 million.
Active accounts surged 36% year over year to 32.3 million. Streaming hours increased 68% year over year to 10.3 billion. Moreover, average revenue per user (ARPU) increased 30% to $22.58 (on a trailing 12-month basis).
Platform revenues (68.7% of revenues) surged 79.2% year over year to $179.3 million.
Robust growth in advertising continued as monetized video ad impressions once again more than doubled year over year, the key catalyst in boosting top-line growth. The Roku Channel contributed to this growth as ad impressions within the channel grew faster than ad impressions in the third quarter.
In August, Roku launched Kids & Family within The Roku Channel for families to find a wide selection of free and Premium Subscription content at one, easy-to-access destination. The Roku Channel’s new parental control features give parents control over what their kids can playback within the channel.
Moreover, the company also partnered with Lego Systems as a sponsor on The Roku Channel Kids & Family home screen, allowing the brand to gain visibility while offering viewers free access to a collection of movies. Such sponsorships boosted viewer engagement in the third quarter.
Roku, Inc. Price, Consensus and EPS Surprise