Roku swung to a net loss in the first quarter of 2022, but Wall Street knew it was coming.
The company reported a loss of $26.3 million, compared to net income of $76.3 million in the first quarter of 2021. At 19 cents per share, the net loss was exactly in line with Wall Street’s consensus forecast, according to FactSet. Total net revenue of $734 million came in ahead of estimates at $718 million.
Roku (ticker: ROKU) added 1.1 million active accounts to reach 61.3 million, a touch below expectations at 61.8 million.
Roku stock was rising in after-hours trading shortly after the report, briefly clearing $100. Shares were up 3.7% to $95 shortly before the company’s 5 p.m. Eastern time conference call, a positive development for Cathie Wood’s Ark Invest.
The stock has taken a beating, falling 74% in the past 12 months as of Thursday’s close. The company, which sells devices and offers a platform that allows users to access streaming services, has seen its valuation crumble as the pandemic fades, broadening the range of entertainment options available to the public. Rising interest rates—which reduce the current discounted value of future profit—have also weighed on high-growth tech stocks.
CEO Anthony Wood insists Roku is a streaming platform, not a streaming service. Netflix struggles have no impact on Roku streaming hours, which also jumped 14% to 20.9 billion hours.
https://www.barrons.com/articles/roku-earnings-what-to-expect-51651170075?siteid=yhoof2
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