Roku Stock Moves Higher Following Netflix Q1 Earnings: What You Need To Know

Roku Inc ROKU shares are rising in extended trading Thursday following strong advertising trends from Netflix Inc NFLX, which reported blowout results for the first quarter after the bell.

Netflix Q1 Results: Netflix reported first-quarter revenue of $11.04 billion, beating analyst estimates of $10.9 billion, according to Benzinga Pro. The streaming giant reported adjusted earnings of $7.03 per share, beating estimates of $6.27 per share.

Total revenue was up 13% year-over-year, driven by membership growth and higher pricing. The company said results came in above company expectations due to higher-than-forecasted subscription and ad revenue. Netflix guided for 15% revenue growth in the second quarter, citing continued strong trends in memberships and advertising revenue.

“A key focus in 2025 is enhancing our capabilities for advertisers. We successfully rolled out the Netflix Ads Suite, our in house first party ad tech platform, in the U.S. on April 1st. In the coming months we will launch the Netflix Ads Suite in our remaining ads markets. We believe our ad tech platform is foundational to our long-term ads strategy,” the company said in a letter to shareholders.

Everything You Need To Know: Netflix Crushes Q1, Says It’s ‘Working Hard To Improve And Expand’ Its Offering

Why It Matters: Roku is well-positioned to benefit from strong advertising trends. The company focuses on revenue opportunities with streaming companies through partnerships and advertising.

Netflix was reportedly considering a takeover of Roku a few years ago, but a deal never materialized. Roku operates an advertising distribution platform, allowing it to capitalize on the growth of streaming.

Roku on Thursday announced it will report first-quarter earnings on May 1. Analysts are anticipating a loss of 27 cents per share and revenue of $1.01 billion, according to estimates from Benzinga Pro.

Last quarter, Roku shares surged after the company reported better-than-expected results and crossed $1 billion in Platform revenue for the first time.

“In Q4, Streaming Hours on The Roku Channel grew 82% YoY, and in the U.S. it reached households with approximately 145 million people," the company said at the time. “We also continue to expand our penetration in the U.S., which has surpassed half of broadband households.”

ROKU Price Action: Roku shares initially popped about 2.5% following Netflix’s results. The stock was up 0.92% after-hours, trading at $59 at the time of publication Thursday, according to Benzinga Pro.

Read Next:

• Disney: How the Fubo Sports Deal Became a Game Changer

Photo: Tada Images/Shutterstock.