Roku Inc (NASDAQ:ROKU) reported third-quarter financial results after the market close Wednesday.
Here are the key highlights.
What Happened: Roku reported third-quarter revenue of $1.06 billion, up 16% year-over-year. The revenue total beat a Street consensus estimate of $1.02 billion, according to data from Benzinga Pro.
The third quarter marked the company's first quarter of greater than $1 billion in total revenue.
Platform revenue was $908.2 million in the quarter, up 15% year-over-year. Devices revenue was $154 million in the quarter, up 23% year-over-year.
The company reported a loss of 6 cents per share in the third quarter, beating a Street consensus estimate of a loss of 32 cents per share.
Roku reported its fifth straight quarter of positive adjusted EBITDA and free cash flow in the quarter.
The company reported 85.5 million streaming households in the third quarter, up 2 million from the second quarter. Hours streamed were 32 billion, up 5.3 billion hours year-over-year. The company's average revenue per user was $41.10, which was flat on a year-over-year basis. Average streaming hours per streaming household per day was 4.1 hours in the third quarter, up from 3.9 hours in the third quarter of 2023.
Roku reported strong sales of its operating system for television as the No. 1 TV operating system in the U.S., Mexico and Canada in the quarter.
The company's Roku Channel was the No. 3 app on the Roku platform for reach and engagement and saw streaming hours up 80% year-over-year.
Read Also: Roku Q3 Earnings Preview: Can Platform Revenue Growth Exceed Expectations?
What's Next: The company said it plans on continuing to grow its streaming households figure in its current markets with a milestone goal of 100 million streaming households, which Roku said it expects to reach in the next 12 to 18 months.
Roku is guiding for fourth-quarter revenue of $1.14 billion, up 16% year-over-year. Platform revenue is guided to grow 16% year-over-year and devices revenue up 25% year-over-year for the fourth quarter.
Fourth-quarter adjusted EBITDA guidance is $30 million.
The company said it is seeing strong political advertising spending that is expected to continue in the fourth quarter.
ROKU Price Action: Roku stock is down 7.4% to $71.75 in after-hours trading Wednesday versus a 52-week trading range of $48.33 to $108.40.
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