Roku Surpasses 30M Users, Beats Q2 Forecasts

Hottest company in the streaming business grew revenue by 59% to $250.1 million
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Roku shares, which have tripled in price since December, are pointed north once again.

The streaming company generated $250.1 million of revenue in the second quarter, a 59% uptick over the comparable period in 2018. Notably, 67% of Roku’s revenue during Q2 came from advertising within its ecosystem, including on AVOD platform the Roku Channel. “Platform revenue was $167.1 million for the quarter, up 86% year over year.

Analysts had expected operating losses of $0.23 per share, but the company delivered a net loss of only $0.08 per share.

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Roku reported that its streaming platform is now being used regularly by 30.5 million households, up from 29.1 million at the end of the first quarter.

Average revenue per user reached $21.06, up $2 from Q1. It’s the first time that metric has exceeded $20.

You can see the rest of Roku’s second quarter financials in this letter to shareholders.

If there any clouds on Roku’s horizon, they seem to related to the OTT player business and the impact of Donald Trump’s trade war on manufacturing them.

“Tariffs might impact our future results,” CEO Anthony Wood told investors. He added that Roku is considering relocating its manufacturing base. 

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