Roku Reports 27M Active Accounts, Sends Stock Up Over 25%

Streaming company revives sluggish shares with early pre-Q4 announcement
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Taking an opportunity to juice its stock price ahead of its fourth-quarter earnings report, Roku reported that its active accounts have topped 27 million, up around 40% year over year.

Roku logo 16x9

The streaming company also said that 7.3 billion hours were spent by users on its platform in the fourth quarter, up around 68%.

As of mid-day trading on the Nasdaq, Roku shares are up over 25%

Related: Watch TCM to Launch on Roku Devices

After the surge on Monday, Roku dipped in morning trading on Tuesday, with CNBC reporting the decline followed negative comments from Citron Research. 

Roku makes the most popular over-the-top device in the U.S. But lately, a majority of its revenue comes from selling ads within its ecosystem—specifically, on the fast-growing AVOD-based Roku Channel.

The company’s shares had sunk below $30 last month—less than half their 52-week peak value—with investors skittish about the impact of tariffs on Chinese electronics on the Roku device business.

But the company’s platform-based advertising sales revenue continues to grow.

“Strong active account growth and accelerating streaming hours point to consumers’ growing enthusiasm for streaming, making Roku America’s largest and fastest growing TV streaming distribution platform,” said Roku CEO Anthony Wood, in a statement. “In 2018, we maintained our leadership in streaming players, licensed smart TVs and TV streaming hours. Roku continues to bring viewers more choice, great value, a compelling user experience—and lots of TV fun.”

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