Why Roku Shares Are Falling

Roku Inc ROKU shares are trading lower by 22.9% at $111.60 Friday morning after the company reported worse-than-expected fourth-quarter sales results and issued first-quarter net sales guidance below estimates.

Roku reported quarterly sales of $865.30 million which missed the analyst consensus estimate of $894.01 million by 3%. This is a 33% increase over sales of $649.89 million in the same period last year. Roku is guiding for first-quarter net sales of $720 million versus the analyst consensus estimate of $748.5 million.

Roku provided the following key results from 2021 in their earnings release:

• Total net revenue grew 55% year-over-year (YoY) to $2.765 billion
• Platform revenue increased 80% YoY to $2.285 billion
• Gross profit was up 74% YoY to $1.409 billion
• Active Accounts reached 60.1 million, a net increase of 8.9 million active accounts from Q4 2020
• Streaming Hours increased by 14.4 billion hours YoY to 73.2 billion1
• Average Revenue Per User (ARPU) grew to $41.03 (trailing 12-month basis), up 43% YoY
• No. 1 TV streaming platform in the U.S., Canada, and Mexico by hours streamed

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Roku has a 52-week high of $490.76 and a 52-week low of $105.10.