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This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Connected television and streaming company Roku Inc (NASDAQ:ROKU) reported fourth-quarter financial results after the market close Wednesday. Here are the key highlights.
What Happened: Roku reported fourth-quarter revenue of $867.1 million, which was flat compared to the prior year period. The total revenue came in ahead of Street consensus estimates of $809.7 million, according to data from Benzinga Pro.
The company reported a loss of $1.70 per share, which beat a Street estimate of a loss of $1.72 per share for the fourth quarter.
Roku reported fourth-quarter platform revenue of $731.3 million, up 5% year-over-year. The company had devices revenue of $135.8 million in the fourth quarter, down 18% year-over-year.
Roku said it added around 4.6 million net new active accounts in the fourth quarter, taking its global total to 70 million at the end of the fiscal year.
The company reported average revenue per user of $41.68 in the fourth quarter, up 2% year-over-year on a trailing twelve month time.
The company’s original channel The Roku Channel reached an estimated 100 million people in the U.S. as of the fourth quarter.
Streaming hours were up 20% year-over-year for the company in the full fiscal year. The company added 9.9 million net new accounts in the full year, which was above its 2019 and 2021 levels. The company cited its Roku TV program in the U.S and international growth as the reasons for the subscriber gains.
“In the U.S., our active accounts are approaching half of broadband households, and we believe this share will continue to grow,” the company said.
Roku’s “Weird: The Al Yankovic Story” had the biggest reach of any on-demand program in The Roku Channel’s history and earned several award nominations.
Roku was the No. 1 television streaming platform by hours streaming in the U.S., Canada and Mexico in the fourth quarter.
Inflation and macroeconomic issues hurt the company’s advertising market in the fourth quarter. Fourth quarter ad revenue was down 12% year-over-year for the U.S. market in December after being down 2% and 6%, respectively, in October and November.
Related Link: Trading Strategies For Roku Stock Before And After Q4 Earnings
What’s Next: Roku is guiding for first-quarter revenue of $700 million. The company said it is committed to a path of positive adjusted EBITDA for full fiscal year 2024.
A three-prong approach for growth includes grow scale, grow engagement and grow monetization.
“Our platform and industry leadership positions us well for reaccelerated revenue growth as the ad market recovers and the shift to TV streaming continues,” the company said.
Roku said the ad market is recovering in the first quarter across several sectors.
Roku-branded televisions are expected to be released in the U.S. in spring 2023 with a price range of $119 to $999.
“We have built our business on the fundamental belief that all TV will be streamed, and all audiences, content and advertising spend will follow. The investments we have made in people, technology and products and services are furthering our competitive advantages.”
ROKU Price Action: Roku shares are up 10% to $70 in after-hours trading Wednesday at the time of writing.
Read Next: Exclusive: ‘Owning The Experience,’ Ark Invest’s Nick Grous On Why Roku Is A Top Ark Holding
Photo courtesy of Roku.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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