Roku came in above analyst estimates on the top line for the first quarter of 2023, as it gained 1.6 million active streaming accounts in the period. But the company told investors that the macroeconomic environment was still “challenged” in the quarter.
The company posted Q1 sales of $741 million, up 1%, and a net loss of $193.6 million, or $1.38 per share. On average, Wall Street analysts were expecting Roku to post Q1 of $708.49 million and a net loss of $1.37 per share.
Revenue in Roku’s Platform segment declined 1%, to $635 million. The company generates Platform revenue through ad sales, the distribution of streaming services, the distribution of FAST channels, Roku Pay, and its media and entertainment promotional capabilities. “The macro environment remained challenged in Q1,” the company said in its shareholder letter. “While ad spend on the Roku platform in verticals including financial services and M&E remained pressured, verticals such as travel and health and wellness improved.”
Roku had 71.6 million active streaming accounts as of the end of Q1, up from 70 million at the end of 2022. Total hours streamed on Roku’s platforms hit 25.1 billion in the first three months of 2023, up 20% year over year (and up from 23.9 billion in Q4).
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