Roku loses less money than expected: Earnings report

Daniel Howley
·Technology Editor
Updated

Roku (ROKU) on Wednesday reported its Q2 2019 earnings, beating analysts’ estimates on both the top and bottom line. Here are the most important numbers to know from the company’s announcement:

  • Revenue: $250.1 million versus $224.4 million expected

  • Earnings per share: $-0.08 versus $-0.21 per share expected

  • Active users: 30.5 million versus 30.5 million expected

Roku is one of the main players in the streaming video space, with its standalone hardware devices and partnerships with various TV manufacturers.

While the company has seen success in that portion of the market, it has increasingly moved its growth to its platform business, which is made up of its advertising efforts. Advertising has out-earned hardware sales in the company’s last five quarters.

FILE - In this May 19, 2014, file photo, Roku CEO Anthony Wood poses for a portrait, in Saratoga, Calif. Shares of Roku, an early player in streaming-video gadgets, are soaring Thursday, Sept. 28, 2017, after an initial public offering raised $219 million. It is best known for its boxes and sticks that let users watch Netflix, Hulu and the growing universe of streaming-video options on their TVs. Roku has deep-pocketed competitors in Amazon, Google and Apple. (AP Photo/Marcio Jose Sanchez, File)
Roku CEO Anthony Wood. (AP Photo/Marcio Jose Sanchez, File)

The company offers a slew of channels via its players, which in term either provide on-screen advertisements, or in-channel advertising that Roku then monetizes.

The streaming landscape, however, is continuing to expand with Disney (DIS) announcing pricing for its Disney+ streaming service. The offering will cost $6.99 per month by itself, or $12.99 per month as a bundle with ESPN+ and the ad-supported version of Hulu.

HBO (T) is also preparing to launch its own streaming service, HBO Max, in the coming months, and NBC is joining the fray, as well, though the company hasn’t announced pricing or availability.

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Email Daniel Howley at dhowley@yahoofinance.com; follow him on Twitter at @DanielHowley.

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